LEGISLATIVE NEWS

INDIANA SALES TAX FOR OUT-OF-STATE CUSTOMERS LAW CHANGES

by - Posted 6 years ago

New Motor Vehicle Dealer Rules

Effective July 1, 2014 dealers will charge sales tax at the buyer’s home state rate. This new law provides that the seller of a motor vehicle to a buyer who intends to transport and register the vehicle outside Indiana within 30 days of the sale will collect sales tax at the rate the purchaser would have paid in the state where the vehicle will be registered. The out-of-state sales tax rate charged is to include only the state sales tax, NOT any local County, or Jurisdictional sales taxes.  All sales taxes collected will be remitted to the Indiana Department of Revenue.

Beginning with the July 2014 tax period, motor vehicle dealers should no longer use the current ST-103 return. A new Indiana sales tax return, ST-103CAR, has been developed specifically for motor vehicle retailers. You should begin using this return, either through INtax or another approved filing method, beginning with the July 2014 tax period. To update your return template to the ST-103CAR form, contact the Indiana Department of Revenue via the INtax message center, mail, or fax to (317) 232-1021.

For each of these sales, you must complete and retain Form ST-108NR . Also, you must provide a copy to the buyer as evidence of the amount of sales tax collected. Form ST-108NR can be found online at www.in.gov/dor/3781.htm


State

Sales Tax Rate

Alabama

4%

Alaska

0% (no sales tax currently imposed)

Arizona

5.6%

Arkansas

6.5%

California

6.5%

Colorado

2.9%

Connecticut

6.35%

Delaware

0% (no sales tax currently imposed)

Florida

6%

Georgia

4%

Hawai’i

4%

Idaho

6%

Illinois

6.25%

Indiana

7%

Iowa

6%

Kansas

6.15%

Kentucky

6%

Louisiana

4%

Maine

5.5%

Maryland

6%

Massachusetts

6.25%

Michigan

6%

Minnesota

6.875%

Mississippi

7%

Missouri

4.225%

Montana

0% (no sales tax currently imposed)

Nebraska

5.5%

Nevada

6.85%

New Hampshire

0% (no sales tax currently imposed)

New Jersey

7%

New Mexico

5.125%

New York

4%

North Carolina

4.75%

North Dakota

5%

Ohio

5.75%

Oklahoma

4.5%

Oregon

0% (no sales tax currently imposed)

Pennsylvania

6%

Rhode Island

6%

South Carolina

6%

South Dakota

4%

Tennessee

7%

Texas

6.25%

Utah

4.7%

Vermont

6%

Virginia

4.3%

Washington

6.5%

West Virginia

6%

Wisconsin

5%

Wyoming

4%

District of Columbia

5.75%