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Indiana Updates Cargo Trailer and RV Sales Tax

The 2020 Indiana General Assembly enacted House Enrolled Act 1059, which amended Indiana Code (IC) 6-2.5-2-5 regarding Indiana retail sales tax on cargo trailers and recreational vehicles.

As of July 1, 2020, when a nonresident purchases an RV or cargo trailer in Indiana and intends to register the vehicle in a nonreciprocal state (as defined in IC 6-2.5-2-5), the dealer must collect Indiana sales tax at the rate of the destination state where the vehicle will be registered. The rate charged should include only the state sales tax, not local jurisdictional sales taxes, and should not be reduced by any cap, exemption, or other adjustments of the destination state.

All sales taxes collected, regardless of rate, will continue to be remitted to the Indiana Department of Revenue.

Click here for more details from WBIW, a news/talk radio station serving south-central Indiana.

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