ELKHART, Ind. (AP) — Two proposed bills in the Indiana Legislature aim to exempt out-of-state buyers of recreational vehicles from having to pay state sales tax, even if their states don’t have a reciprocal agreement in place.
The Elkhart Truth reports that 41 states currently have reciprocal agreements with Indiana that exempt out-of-state RV buyers from having to pay the 7 percent state sales tax.
Residents of the other nine states, which include Michigan, Florida and California, could pay Indiana’s 7 percent sales tax in addition to sales tax in their home state.
Republican state Sen. Blake Doriot says numerous RV dealers tell him they’ve lost significant business due to out-of-state buyers going elsewhere to avoid double taxation. He says the loss of out-of-state buyers impacts RV dealers as well as other industries in Elkhart County.