Indiana Sales Tax

[Gene Chaltry]

Went to HartCity RV in Elkhart last week to see about buying a Montana. Was putt off when I was told that starting July 1, 2004 that Indiana must collect Indiana sales tax on all motor vehicles and trailers sold in Indiana. No matter where the customer lives. Indiana's sales tax is 6%. They also told me that Counties amd local jurisdictions that have local sales tax may or may not provide a credit. I asked for a copy of this letter and received it. I will send a copy to anyone who wants one.

[NJ Hillbilly]

That will get repealed! Especially when most if not all of the mfg's move out of Indiana. Technically We are not buying it in Indiana we are buying it from our selling dealer. The dealer is purchasing it for resale which exempts the item from sales tax because more tax will be collected on the higher resale price. If the tax is paid in Indiana then realistically tax being charged at the selling dealer is "double dipping".
I am sure they are already paying sales tax on most of the materials so in reality the only tax that could be collected would be on the labor to assemble and build.

Let's see where this goes.

John

[8.1al]

Generally your home state will credit you for any tax paid to another state. For example we paid AZ sales tax on our Montana and then when we registered it back home in MI we only had to pay the difference. That will only work out it your home state tax is the same or more than IN, if it's less well I don't know, you might want buy elsewhere.

[sreigle]

I assume that refers to sales at the retail level, right? Those ordered by our Kansas City dealer that he sells to us are not subject to this, right?

[Gene Chaltry]

Steve, It is only on Auto's and RV's sold in Indiana. If I knew how to add a picture I would post the letter on here. Tried, Couldn't do it.

[NJ Hillbilly]

So the savings is now gone. You still have to pay sales tax (if applicable) to the stata that You register it in. I guess it's back to Montana, Delaware or the few others that are exempt.

I was originally thinking tax had to be paid on all RV's regardless if they were shipped out to be sold retail.

John

[sreigle]

I'd have it delivered to my 'home' state where there is no sales tax on vehicles other than a 3% excise tax on the difference paid. I'd not then pay the Indiana tax.

[Gene Chaltry]

Went to Michigan. Told them I was going to be a resident of South Dakota. They told me if I buy the Montana from them all I have to do is show them my South Dakota Drivers license, Then I will be only charged the 3% excise tax.