wa8yxm wrote: Depends.. Do all states charge sales tax now? (I don't know)
In Michigan:
Your comment about "I could be buying a used car" would be exactly correct. from the state's point of view a new (or used) motor home is no different than a new (or used) motor home. .and you will pay sales tax on it.
I believe that AL,DE, MT,NH, & OR, do not have sales tax, (unless it changed very recently).
I know Oregon does not have a sales tax (I used to live there). I thought there were six states that do not have a sales tax?
Bill 720 wrote: Hi: I have to wonder about that. If you buy it in Indiana and tag it in Kentucky there may not be a sales tax. Bill
If you bought it in IN while you lived in IN and then move to KY then KY would not require sales tax. If you sell to/buy from your kid there is no sales tax unless the law has changed recently.
The "preliminary" bill of sale they have the sales tax down as only 6% which is the sales tax rate in KY. The salesman did say there were 5 states that did not have sales tax, guess he was right on that. I was comparing the motorhome to the TT which I did not have to pay any sales taxes on, what I should have done is compared the motorhome to a used car. The bigger travesty that I see now is the dealership charging $250 to process the paper work.
FYI: My father just bought a new TT and he did have to pay sales tax on it.
Sales Tax Exemption for RV's & Cargo Trailers - FAQs
How is a Recreational Vehicle or a Cargo Trailer defined, for purposes of this exemption from sales tax?
Indiana Code 6-2.5-5-39(a) & (b) contain the definitions of an RV or a Cargo Trailer that must be met in order to utilize this exemption. The definitions are copied below.
A Cargo Trailer is defined by I.C.6-2.5-5-39(a) as:
(a) As used in this section, "cargo trailer" means a vehicle:
without motive power;
designed for carrying property;
designed for being drawn by a motor vehicle; and
having a gross vehicle weight rating of at least two thousand- two hundred (2,200) pounds.
A Recreational Vehicle (RV) is defined by I.C.6-2.5-5-39(b) as:
(b) As used in this section, "recreational vehicle" means a vehicle with or without motive power equipped exclusively for living quarters for persons traveling upon the highways. The term includes a travel trailer, a motor home, a truck camper with a floor and facilities enabling it to be used as a dwelling, and a fifth wheel trailer.
I am a resident of a state that does not have a sales tax. Do I still have to pay the Indiana sales tax?
Your dealer will grant you a 100% sales tax exemption, thus your dealer will not collect any sales tax.
I was charged additional tax by my home state upon registration and/or titling. I already paid a sales tax to Indiana. Why was I charged additional taxes?
There are two possible answers to this question.
Your home state probably imposes a local sales or excise tax in addition to their state sales tax. Indiana only imposes a state sales tax. Your state should allow a credit for the state sales tax paid against your state sales tax; however, you will have to pay any additional local taxes that may be due in your home state.
You live in a state that does not allow credit for a sales tax paid to another state. Of the fifty (50) states, the Indiana Department of Revenue is aware of only five (5) states where credit is not given to their residents for a state sales tax paid on vehicles to other states. These states are;
ARKANSAS - Tax credit not allowed
MARYLAND - Tax credit not allowed
MISSISSIPPI - Tax credit not allowed
OKLAHOMA - Tax credit not allowed
WEST VIRGINIA - Tax credit not allowed
I am a RV and/or Cargo Trailer dealer. I have a customer who is a nonresident of Indiana. Should I collect the Indiana 7% sales tax on the sale to this customer?
Yes, nonresidents are subject to Indiana’s 7% sales tax unless they register or title their purchase in a “reciprocal” state within 30 days of purchase. A state is reciprocal with Indiana if the other state would allow an Indiana resident to purchase exempt from that state to be registered or titled in Indiana. No exemption exists for a customer who is registering or titling in a non-reciprocal state or country. A purchaser claiming an exemption must complete a ST-137RV affidavit of exemption form. The selling dealer must also complete this form and keep it filed at their place of business. Tax must be charged for the non-reciprocal states or countries of:
California Michigan
Florida Mississippi
Maine North Carolina
Massachusetts South Carolina
Canada Mexico
(and all other foreign countries)
Note: A sale to a nonresident that is determined to be subject to the Indiana sales tax due to registration/titling in one of the states or countries listed above may still be entitled to an exemption if they can legitimately claim one of the listed exemptions as shown on the backside of the ST-108E form.
Arnie
2003 Travel Supreme MH
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1963 Pontiac Grand Prix
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