Bill would exempt out-of-state RV buyers from sales tax

ELKHART, Ind. (AP) — A bill proposed in the Indiana Senate would exempt out-of-state recreational vehicle buyers from being double taxed.

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, Middlebury Republican state Sen. Carlin Yoder, tells The Elkhart Truth that current sales tax law hurts dealers.

A state Legislative Services Agency study says the proposal could “significantly reduce sales tax revenue to the state.”

The state Senate Committee on Tax and Fiscal Policy was scheduled to hear the RV bill Tuesday morning.

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