Area RV industry could see business boom if sales tax bill is signed

(Ben Quiggle/Elkhart Truth)

The RV industry in Michiana is watching the progress of an Indiana sales tax bill closely.

Senate Bill 172 would allow out-of-state RV and cargo trailer buyers from nine states, including Michigan, to avoid being double-taxed when buying an RV from Indiana. The bill passed the Indiana House of Representatives Tuesday and awaits Gov. Eric Holcomb’s signature, according to the Elkhart Truth.

41 states already have a reciprocal agreement with Indiana that keeps residents of those states from paying Indiana’s 7% sales tax. Michigan, Florida, California, Arizona, Hawaii, Massachusetts, Mississippi, North Carolina and South Carolina don’t.

The bill would allow for a two-year trial period from June 30, 2017 until July 1, 2019 to allow the state’s Department of Revenue to work out agreements with those states. In the meantime, Indiana will match the sales taxes that buyers in those states would pay, meaning residents of 8 of those 9 states would still save money in the agreement.

Sen. Blake Doriot of New Paris and Rep. Doug Miller of Elkhart sponsored the bill.

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