The Indiana Supreme Court ruled that an RV dealer must pay IN sales tax on RVs sold to buyers in Michigan even though he delivered it to them in MI. MI and IN do not have a reciprocal sales agreement. This means, if I understand it correctly, that future MI buyers will pay the higher IN rate. While they may get credit for paying the sales tax in Michigan when they register it, they would still have to pay the higher IN rate. It may not pay to pick up your RV from the manufacturer if your state is not one with a reciprocal agreement with Indiana.
Majority justices: RV dealer must pay taxes in ‘sham’ transactions
A northern Indiana recreational vehicle dealer who tried to avoid paying Indiana sales tax on out-of-state transactions by moving the RVs into Michigan before handing over the keys to customers must repay those taxes after a divided Indiana Supreme Court entered summary judgment in favor of the Indi…
