Indiana RV Excise Tax

[Ramon]

I was looking for some expression of thought about the new Indiana RV Excise Tax. Called the BMV and was told that the tax is based on the value posted by the manufacturer when new.

I then asked the tax rate - didn't know. How does this tax compare with other States?

[Guest BillAdams]

I was looking for some expression of thought about the new Indiana RV Excise Tax. Called the BMV and was told that the tax is based on the value posted by the manufacturer when new.

I then asked the tax rate - didn't know. How does this tax compare with other States?

Most likely not well. There is no such tax in FL, but you have to pay a one time sales tax of 6% on new purchases but only on the difference between price if you trade in a coach. Is this excise tax an ongoing fee or one time? Do you also pay a sales tax or is this charged instead of a sales tax? We lived in VA and there was an annual (outrageous) personal property tax. Glad that FL has no such thing. Some States charge low fees and then high license plate fees. Others the reverse. Others neither or both.

You need to look at the total fees and then if you are looking for a way to get around them you need to find out how much that evasion penalty is going to cost you.

[tmoning]

Related article on FMCA.com: Indiana RV excise tax

[Ramon]

I was looking for some expression of thought about the new Indiana RV Excise Tax. Called the BMV and was told that the tax is based on the value posted by the manufacturer when new.

I then asked the tax rate - didn't know. How does this tax compare with other States?

I paid a 7% Indiana Sales Tax on the difference between the price of this unit and my trade-in. This new Excise Tax is to replace what was property tax. This is the same way that aircraft are taxed. A lot of aircraft owners in Indiana -- about 50% -- were not paying property tax on their air craft, and probably the same percentage were not paying property tax on their RVs.

I don't have a problem with the Excise Tax, but do have a problem with the rate.

Ramon

[Guest BillAdams]

If it's a one-time tax then I would not consider this to be unreasonable. FL is a 6% sales tax on the difference and it sounds like that is the same thing. You will see a lot of RVs registered in Montana as an LLC to avoid these kinds of taxes. More and more states are working hard to collect the taxes these folks are avoiding, but there are loopholes out there if you are so inclined.

[rscott53104]

I have a motor home registered in Indiana. I paid the 7% sales tax which was based in the difference of the value of my trade in and the price of the new rig. The Excise tax was $1600 for the first year and talking to the BMV rep she said it will go down each year and will reach it's lowest level in 8 years.

[diplomatman2002]

As a member of the FMCA Governmental and Legislative Affairs committtee, myself and some state committee representives a few years ago fought to get answers and change a similiar law in Connecticut. The law was complicated as each township had a different tax rate. It was very unfair for instance if you lived in one township you might pay at a tax rate of .7 mils but you could live a block away in another township and pay a rate based on .22 mils. After a two year fight we were unable to make any headway in gettting the law changed and in some cases even getting good answers.

Diplomatman2002

[mscamping]

I was looking for some expression of thought about the new Indiana RV Excise Tax. Called the BMV and was told that the tax is based on the value posted by the manufacturer when new.

I then asked the tax rate - didn't know. How does this tax compare with other States?

The excise tax on our '03 moho would have doubled over the personal property tax rate, and it would be every year.. It would, or should, go down as the moho gets older and loses value.. Plus you pay sales tax when you buy it in Indiana or if you buy in another state you pay the difference in sales tax to Indiana, or if the other state doesn't have sales tax, you pay all the Indiana sales tax.. For being the RV capital of the world they(Indiana) donen't treat the RV industry very well for the residents of Indiana..

Mike M..

[NavyDad89]

Indiana has taxed RV units as far back as I was a resident. We moved there in 1984. Previously, trucks over 3/4 ton, RV's, boats and other recreational units that required any kind of license were taxed as personal property and had to be declared on your annual personal property tax form and then you paid the bill sometime in June and November if you chose to break the payment. Once they started checking the licensed recreational vehicles being licensed to those declared on the personal property rolls I guess they decided to do the exise tax similar to what they had been using on autos. In April of 2007, after becoming a legal Florida resident and licensing all vehicles in Florida, I was assessed tax on our RV based upon the previous annual assessment. They informed me that I owed over $3000 tax plus 15% for filing after the deadline date PLUS 25% for not filing the personal property tax form at all. They expected me to send them a check for $4500 or they threatened to send the sheriff to take care of the problem. I waited until the last week before their deadline and called the assessor's office to let them know I was no longer an Indiana resident and would not be paying them a cent. They wanted copies of Florida domicile, registration etc. I emailed them the copies and was told they would remove me from the rolls. In our case, changing domicile to Florida has save more in vehicle licensing and taxes than the small increase in insurance costs we have had.

Indiana may claim to be the RV capitol of the world, but I do not believe them. Besides IMHO there might even have been more RVs produced in other states the last 3 or 4 years.

[tbutler]

For comparison, we registered in South Dakota for 10 years as full timers. They have a 3% excise tax on the purchase price of an RV minus the value of the trade-in. After that, there is no property tax on the vehicle and our license plates cost about $300 when our rig was new. The license fees decrease every year for about 7 years. There is no annual inspection required. Licensing was accomplished by mail each year.

We registered in Texas this last year and found an annual inspection and a sales tax of $90 for the first time registration on both our 8 year old toad and our 6 year old motor home. Annual plates for the motor home run us about $500 and it is my understanding that will remain the same each year. There is no property tax on the motor home.