Legislation from state Rep. Doug Miller, R-Elkhart, Ind., that would exempt out-of-state purchases of RVs from state sales tax for five years was approved Monday by the Indiana House.
This story originally appeared in The Goshen News.
Miller said that in recent years, Indiana experienced difficulties in securing sales tax reciprocity with several states, including California, Florida and Michigan. Prospective buyers from these states and foreign countries must pay Indiana sales tax, as well as their own local sales tax, Miller said in a news release. He added the situation has put Indiana’s once-strong RV dealership industry at a competitive disadvantage with many RV dealerships relocating to nearby states with friendlier sales tax environments.
“Indiana’s current policy on how to tax RV purchases is causing local businesses to lose potential customers outside the state,” Miller said. “We want to bring these dealerships back to the state and continue to support an industry that employs thousands of Hoosiers and contributes to Indiana’s economy.”
Miller cited the RV Industry Association’s study that found the RV industry has a $32.4 billion impact on Indiana’s economy each year. Miller said his legislation could help the RV industry, as well as stimulate other areas of local business, from tourism to vehicle maintenance and technological upgrades.
House Bill 1059 now moves to the Senate for further consideration, Miller added.
