Bill > HB1688

This bill modifies Indiana's sales tax rules for recreational vehicles (RVs) and cargo trailers purchased by nonresidents. Specifically, the bill repeals provisions added in 2020 that previously set the sales tax rate based on the destination state's tax rate. Instead, the bill now provides a complete sales tax exemption for RVs and cargo trailers purchased in Indiana by nonresidents who intend to transport and register the vehicle in another state within 30 days, regardless of whether the destination state offers a reciprocal tax exemption to Indiana residents. The bill defines RVs as vehicles equipped for living quarters while traveling, including travel trailers, motor homes, truck campers, and fifth wheel trailers, and defines cargo trailers as non-motorized vehicles designed for carrying property with a gross vehicle weight rating of at least 2,200 pounds. To claim the exemption, purchasers must submit an affidavit to the seller stating their intent to transport the vehicle out of state and register it elsewhere. The changes will take effect on July 1, 2025, with specific provisions addressing how transactions will be classified based on agreements and payments made before and after that date.

Budget and Finance

https://iga.in.gov/legislative/2025/bills/house/1688/details