Indiana RV Tax

[csp]

About six months ago I received something from the state of Indiana about wanting information on my RV for taxing us. I called and the lady on the phone said she had no idea how much the tax was going to be or how they were going to tax us. She said they would decide that later. I am glad that government can get away with that because if I told someone in my business I was going to charge them but I did not know how I was going to charge them or how much I was going to charge them I bet they would probably walk out the door.

I guess that is enough complaining. Does any one know how much this tax or fee is going to be or how we are going to be charged? Do we find out when we renew our plates or are they going to send us something letting us know. Or does anyone still know????
Chris

[PNWGirl]

Hey Chris,

This is what I found.

In 2009 Indiana passed a new excise tax on RV's-- all, even travel trailers. The tax begins in 2010 based on 2009 value. Depending on how much per dollar they assess, it could be ugly.

They gave with one hand and took away with the other. They passed legislation to exempt RV's from sales tax- to help the RV manufacturing industry in the state BUT to get that money back, they have created a new excise tax.

Attached is my research material. On the big file, start reading at page 43.

Sorry!!

Sheila

[Chuck 1935]

Don't turn in your weapons, the time is drawing near !!!!!!

[TXiceman]

I am afraid that this is no where the end of this. As government agencies find an eroding tax base, they will be searching for alternate sources to bolster the coffers. Since RVs are obviously a "luxury", they will be going after these as more income.

Ken

[CWHTRAINS]

My Indiana RV license tax/Personal property tax on my 2006 Journey went from $1,898.28 in 2009 under the old system to $1,033.75 in 2010 under the new the new method of assessment. It will continue to decrease in future years much like the tax on cars does as well.

[wardy]

Chuck,

For the first time in my life I'm not proud of America. Okay that's an exaggeration (slight) and pun on the First Lady but wow, where the heck are we going?

[Ray,IN]

Taxes increased $200 on our 5er this year.Another meaning to being a Hoosier.

[CWHTRAINS]

Also the tax is assessed with your tags, just like it is on your car. You will find out the amount when you get your renewal information from BMV.

The legislation did not do away with the sales tax on in-state purchases of RV's by Indiana residents. It only exempted out of state sales of RVs by Indiana RV dealers as long as the unit was registered out of state by the buyer. So if you are an Indiana resident and buy a new RV, a 7% sales tax will apply.

If you are trading an RV in, the 7% applies to the net amount of the deal, i.e. the cost of new RV less the trade in value of old RV. This is important to keep in mind when selling your RV yourself and buying a new one from a dealer. If you do this, you would have to pay the 7% on the full purchase price from the dealer. A good dealer may be willing to work with you to "take" your old RV in "trade" and immediately sell it to your buyer, thus allowing you to save the 7% tax on the value of the trade. On a $50 - 60 thousand trade value, this could be a $3,500 to $4,200 savings. It is enough savings that you may be asked to pay a fee for this, but the savings should be worth it.

[Chuck 1935]

wardy
I hate to say it, but I think we have seen the best of it. The green hokus pokus folks will have us at the lowest common denominator before long. Smart Cars will be the Limo's of the future. Stay strong and don't buy into th B.S.

[wardy]

Chuck,
With the EPA now regulating carbon dioxide, yes this won't end well without the people getting truly fed-up. An now more taxes yikes, I'd best stop here.

Never, never, ever quit!

[TXiceman]

I know it is hard to post and discuss tax related items without going political. But, lets keep this aimed at the RV issue here.

A few years ago, some of the local jurisdictions in Texas tried to enforce an obscure little know section of the code to collect a "property tax" on trailer type RVs but it did not cover motorhomes or visa-versa. In the end, the state wound up telling the locals that they could not enforce the law and they wound up refunding the money collected.

I wonder if the Indiana code is really enforceable or is it just a politicians dream.

Ken

[csp]

Thanks for the responses. Does anyone know what % of the value it will be? People should have the option to get an appraisal because the book could say it is worth $50,000 and it may only appraise at $30,000 because of the economy, shape, or some other reason. If someone buys a damaged RV that is worth $500,000 in tip top shape but is being fixed up from damages and only worth $100,000 they are really going to get screwed.
I guess we can only hope for the best. Can not sell mine now because the 2 and 4 year olds will be very upset with me. They love to travel.
Chris

[MikeandClaudia]

I hope you told them that a Monaco was a take-off of a tear-drop design originated in 1948 and was very small and crowded?

[Route 66]

Quote:

I wonder if the Indiana code is really enforceable or is it just a politicians dream. Ken

Indeed it is.

Sometime before 2006 Indiana taxed all RV's sold in Indiana even if they were sold to out of state owners. Sales dropped, dealers complained, and the out of state tax was repealed.

Since the out of state tax was repealed, I bought from an Indiana dealer in 10/06.

It seems the dealers are now getting their ducks in a row as last month I received a form from my dealer that they neglected to have me sign at the time of purchase.

That form was to indicate that I was registering my DSDP in another state and no tax was due.