Introduced Version
HOUSE BILL No. 1073
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-2.5-5-39.
Synopsis: Tax on recreational vehicles and cargo trailers. Eliminates
the requirements: (1) that a retail merchant collect sales tax on the
retail sale of a cargo trailer or recreational vehicle to a nonresident
purchaser in an amount equal to the difference between the Indiana
sales tax rate and the sales tax rate in the state where the purchaser
resides; and (2) that a nonresident purchaser submit proof of
registration in another state to the retail merchant within 60 days of the
sale.
Effective: Upon passage.
Walorski, Davis, Neese, McClain
January 5, 2006, read first time and referred to Committee on Ways and Means.
Introduced
Second Regular Session 114th General Assembly (2006)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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HOUSE BILL No. 1073
A BILL FOR AN ACT to amend the Indiana Code concerning
taxation.
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 6-2.5-5-39; (06)IN1073.1.1. -->
SECTION 1. IC 6-2.5-5-39, AS ADDED BY P.L.195-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 39. (a) As used in this section, "cargo trailer"
means a vehicle:
(1) without motive power;
(2) designed for carrying property;
(3) designed for being drawn by a motor vehicle; and
(4) having a gross vehicle weight rating of at least two thousand
two hundred (2,200) pounds.
(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.
(c) A transaction involving a cargo trailer, a recreational vehicle, or
an aircraft is exempt from the state gross retail tax if:
(1) the purchaser is a nonresident;
(2) upon receiving delivery of the cargo trailer, recreational
vehicle, or aircraft, the person transports it within thirty (30) days
to a destination outside Indiana;
(3) the cargo trailer, recreational vehicle, or aircraft will be titled
or registered for use in another state or country; and
(4) the cargo trailer, recreational vehicle, or aircraft will not be
titled or registered for use in Indiana.
The amount of the exemption for a cargo trailer or recreational vehicle
is determined in subsection (d).
(d) The amount of the exemption for a cargo trailer or a recreational
vehicle under this section is equal to the amount of:
(1) the state gross retail tax that would be imposed on the
transaction if the cargo trailer or recreational vehicle were
registered in Indiana; minus
(2) the sales, use, or similar tax that would have been imposed on
the transaction under the laws of the state or country in which the
purchaser affirms the cargo trailer or recreational vehicle will be
registered.
The amount of the exemption under this section may not exceed the
amount of the state gross retail tax that would be imposed on the
transaction if the cargo trailer or recreational vehicle were registered
in Indiana. A retail merchant that accepts an exemption claim for a
cargo trailer or recreational vehicle under this section shall, within
sixty (60) days after the date of the transaction, have on file a copy of
the purchaser's title or registration of the cargo trailer or recreational
vehicle outside Indiana or pay to the state the amount of the exemption.
(e) Any state gross retail tax due after the application of the
exemption provided by this section must be paid to the retail merchant.
(f) (d) A purchaser must claim an exemption under this section by
submitting to the retail merchant an affidavit stating the purchaser's
intent to:
(1) transport the cargo trailer, recreational vehicle, or aircraft to
a destination outside Indiana within thirty (30) days after delivery;
and
(2) title or register the cargo trailer, recreational vehicle, or
aircraft for use in another state or country.
The department shall prescribe the form of the affidavit. The affidavit
must identify the state or country in which the cargo trailer,
recreational vehicle, or aircraft will be titled or registered. Within sixty
(60) days after the date of the transaction, the purchaser shall provide
to the retail merchant a copy of the purchaser's title or registration of
the cargo trailer, recreational vehicle, or aircraft outside Indiana.
(g) The department shall provide the information necessary to
calculate the amount of an exemption claimed under this section to
retail merchants in the business of selling cargo trailers or recreational
vehicles.
SOURCE: ; (06)IN1073.1.2. -->
SECTION 2. [EFFECTIVE UPON PASSAGE] IC 6-2.5-5-39, as
amended by this act, applies to retail transactions occurring after
the effective date of this SECTION.
SOURCE: ; (06)IN1073.1.3. -->
SECTION 3.
An emergency is declared for this act.