Introduced Version
HOUSE BILL No. 1195
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-2.5-5-39.
Synopsis: Sales tax. Provides that the purchase of a recreational
vehicle or cargo trailer that is transported out of Indiana for registration
and use in another state or country is exempt from the state gross retail
tax regardless of whether the destination state or country provides a
similar exemption for Indiana residents.
Effective: July 1, 2010.
Neese
January 7, 2010, read first time and referred to Committee on Ways and Means.
Introduced
Second Regular Session 116th General Assembly (2010)
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HOUSE BILL No. 1195
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; (10)IN1195.1.1. -->
SECTION 1. IC 6-2.5-5-39, AS AMENDED BY P.L.211-2007,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2010]: 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 or a recreational vehicle
is exempt from the state gross retail tax if:
(1) the purchaser is a nonresident;
(2) upon receiving delivery of the cargo trailer or recreational
vehicle, the person transports it within thirty (30) days to a
destination outside Indiana;
(3) the cargo trailer or recreational vehicle will be titled or
registered for use in another state or country; and
(4) the cargo trailer or recreational vehicle will not be titled or
registered for use in Indiana. and
(5) 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.
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) 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 or recreational vehicle to a
destination outside Indiana within thirty (30) days after delivery;
and
(2) title or register the cargo trailer or recreational vehicle 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 or
recreational vehicle will be titled or registered.
(e) The department shall provide the information necessary to
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.
SOURCE: ; (10)IN1195.1.2. -->
SECTION 2. [EFFECTIVE JULY 1, 2010]
(a) IC 6-2.5-5-39, as
amended by this act, applies only to retail transactions occurring
after June 30, 2010. A retail transaction shall be considered as
having occurred after June 30, 2010, to the extent that delivery of
the property constituting selling at retail is made after that date to
the purchaser or to the place of delivery designated by the
purchaser. However, a transaction shall be considered as having
occurred before July 1, 2010, to the extent that the agreement of
the parties to the transaction was entered into before July 1, 2010,
and payment for the property furnished in the transaction is made
before July 1, 2010, notwithstanding the delivery of the property
after June 30, 2010.
(b) This SECTION expires January 1, 2011.