Bad news / good news

[blueblood]

Blueblood:

I believe Indiana changed the law last year.  Now they charge a flat 6% and keep it all.  Unless the dealers in Indiana are fibbing and keeping it temselves.

The final version will go into effect July 1.

Here is an excerpt from RV Business

"Rather than paying the 6% Indiana sales tax, out-of-state buyers starting July 1 will only pay to Indiana the amount of sales tax they would pay in the state where they will register their vehicle. Reciprocal agreements between most states will allow the tax paid in Indiana to be credited in the purchaser's home state."

 

[Smoky]

Blueblood this is very interesting.

Was I too early by buying now rather than July 1?

Or can I claim back what I paid to Indiana when I get back to Montana.  Is this done when filing state income tax or is there another procedure?

At any rate, based on what you are quoting, it looks like the dealer was correct in charging me the 6% and it is somehow up to me to get a refund.

 

[Ned]

It's quite common for one state to credit the sales tax paid in another state but only up to the first state's tax rate.  They never give refunds as they never collected the tax in the first place.

 

[Smoky]

But Ned they did collect it from me.  I was told state law changed last year and they had to collect the 6% on every sale no matter the residency.  I price compared between three cargo van dealers and they all said the same thing.

And all three also said there was no way to get it back.

There is a big discrepancy here between what they told me vs what Blueblood is quoting.  I sure would like to get to the bottom of it.

Glad this did not happen on my MH purchase lol!

 

[Ned]

Yes, what I'm saying is that Montana won't issue a refund for the difference as they didn't collect the tax.  If MT had a tax higher than IN, then they may give you credit for the IN tax paid, but since the MT tax is 0, there is no credit to be given.

That's why many of us purchased our RVs and took delivery in a different state from both the dealer and the ultimate home state.  You have just been screwed by the state of IN

 

[Smoky]

LOL.  Well Ned, that is what I said originally.

 

[Ned]

That's why we tried to explain how to do an out of state delivery to avoid that trap.

 

[blueblood]

Blueblood this is very interesting.

Was I too early by buying now rather than July 1?

Or can I claim back what I paid to Indiana when I get back to Montana.  Is this done when filing state income tax or is there another procedure?

At any rate, based on what you are quoting, it looks like the dealer was correct in charging me the 6% and it is somehow up to me to get a refund.

I think you were too early and I doubt it applies to any purchase other than an RV.

 

[Smoky]

Aha!  Yes I was talking about a cargo trailer, not an RV.  Likely the dealers were giving me the correct info.  I still saved enormously.  Maryland price for that trailer was $4800 plus 5% sales tax and by picking the same trailer up in Indiana I paid $1900 and 6% tax.  I ain't cryin'.  ;D

 

[BrotherFrankie]

im curious years later... do u have that rig?  going to look at your posts

 

[Alfa38User]

Frankie

The poster "Smokey" has not been back since Oct 2013.....