SB 106-1_ Filed 03/09/2006, 13:16
Adopted 3/13/2006
CONFERENCE COMMITTEE REPORT
DIGEST FOR ESB 106
Citations Affected: IC 6-2.5-5-39.
Synopsis: State gross retail tax Provides that a cargo trailer or recreational vehicle (RV)
purchased by a resident of another state or country is exempt from Indiana sales tax if it is to be
registered in a state or country that provides a sales tax exemption for cargo trailers or RVs
purchased by Indiana residents for registration in Indiana. Provides that a cargo trailer or RV
purchased by a nonresident is subject to Indiana sales tax if it is to be registered in a state or
country that does not provide a sales tax exemption for cargo trailers or RVs purchased by
Indiana residents for registration in Indiana. Deletes the requirement that a nonresident purchaser
provide, and the seller keep on file, a copy of the purchaser's registration or title from outside
Indiana. Specifies that the form for the affidavit submitted by the purchaser must include an
affirmation by the purchaser under the penalties for perjury that the information contained in the
affidavit is true. (This conference committee report deletes the contents of the House passed
version of SB 106 and inserts the contents of the Senate passed version of SB 106 while
specifying that the exemption determinations described above apply to retail transactions
occurring after June 30, 2006.)
Effective: July 1, 2006.
Text Box
SOURCE: IC 6-2.5-5-39; (06)CC010601.1. -->
SECTION 1. IC 6-2.5-5-39, AS ADDED BY P.L.195-2005,
SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2006]: 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;
and
(5) in the case of a transaction involving a cargo trailer or
recreational vehicle, the cargo trailer or recreational vehicle
will be titled or registered in a state or country that provides an
exemption from sales, use, or similar taxes imposed on a cargo
trailer or recreational vehicle that is purchased in that state or
country by an Indiana resident and will be titled or registered
in Indiana.
The amount of the exemption for a cargo trailer or recreational vehicle
is determined in subsection (d). A transaction involving a cargo
trailer or recreational vehicle that does not meet the requirements
of subdivision (5) is not exempt from the state gross retail tax.
(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,
which must
include an affirmation by the purchaser under the penalties for
perjury that the information contained in the affidavit is true. 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) (e) The department shall provide the information necessary to
calculate the amount of determine a purchaser's eligibility for an
exemption claimed under this section to retail merchants in the business
of selling cargo trailers or recreational vehicles.