Indiana ~ Sales and Use Tax: Out-of-State Rate Applied to Certain Nonresident Vehicle Purchases

CCH Tax Day Report

Effective from July 1, 2017 to June 30, 2019, sales of recreational vehicles and cargo trailers In Indiana will be taxed at the rate of the state or country where the cargo trailer or recreational vehicle will be titled or registered. An out-of-state rate applies where:

– the purchaser is a nonresident;

– the purchaser intends to transport the purchased item to a destination outside Indiana within 30 days after delivery and title or register it for use in another state or country;

– the purchased item will not be titled or registered for use in Indiana; and

– the rate is certified by the seller and purchaser in an affidavit.

The affidavit will be prescribed by the department of revenue and must include:

– the name of the state or country in which the cargo trailer or recreational vehicle will be titled or registered;

– affirmation by the purchaser under the penalties for perjury that the information contained in the affidavit is true; and

– any other information required by the department for the purpose of verifying the information contained in the affidavit.

The legislation also permits the governor to enter into agreements with other states under which each state will recognize a sales tax exemption for transactions involving recreational vehicles and cargo trailers.

A retail transaction occurs after June 30, 2017, if the property sold is delivered after June 30, 2017, and before July 1, 2019 unless the sales agreement is entered into before July 1, 2017, and payment for the property is made before July 1, 2017.

A retail transaction occurs before July 1, 2019, if the sales agreement is entered into before July 1, 2019, and payment is made before July 1, 2019.

P.L. 53-2017, (S.B. 172 ), Laws 2017, effective as noted above

AUTHOR

CCHTaxGroup

All stories by: CCHTaxGroup

Leave a Reply

Your email address will not be published.