I am an RV and/or cargo trailer dealer.,I have a customer who is a nonresident of Indiana. Should I collect the Indiana 7 percent sales tax on the sale to this customer?
Yes, nonresidents are subject to Indiana’s 7 percent sales tax unless they register or title their purchase in a “reciprocal” state within 30 days of purchase. A state is reciprocal with Indiana if the other state would allow an Indiana resident to purchase exempt from that state to be registered or titled in Indiana. No exemption exists for a customer who is registering or titling in a nonreciprocal state or country. A purchaser claiming an exemption must complete an ST-137RV affidavit of exemption form. The selling dealer must also complete this form and keep it filed at its place of business. Tax must be charged for the following nonreciprocal states or countries: Arizona Massachusetts California Michigan Florida Mississippi Hawaii North Carolina Kentucky * Rhode Island * Maine * South Carolina All nonresidents of the U.S. are taxable *Cargo trailers only are taxable in these states. RVs are exempt. Note: A sale to a nonresident that is determined to be subject to the Indiana sales
