A bill proposed in the Indiana Senate would exempt out-of-state RV buyers from being double taxed, the Associated Press reports.
Indiana currently has reciprocal agreements with 41 states that exempt out-of-state RV buyers from having to pay Indiana sales tax, with Indiana residents getting similar exemptions for purchases in those states. The proposed bill would exempt out-of-state RV purchasers regardless of whether their states have a reciprocal agreement.
The bill’s sponsor, state Sen. Carlin Yoder, R-Middlebury, told The Elkhart Truth that current sales tax law hurts dealers.
“Indiana has lost a lot of RV dealers because of the way we make customers pay double in sales tax,” Yoder said. “I hear continually from RV dealers about the issue, and I have made several attempts in the past to change things.”
Dave Titus, who owns International RV Wholesaler in Elkhart, said the issue over sales taxes costs him the price advantage he has over dealers outside of Indiana. He said it’s probably costing his business about $1 million in revenue annually.