Indiana Sales Tax

[MarvBear]

Information from NADA Title & Registration Textbook 2004

 

Indiana Sales and Use Tax Applicable to Registration

 

Sales/Use tax of 6% due on new and used vehicle, watercraft (including documented vessels) and recreational vehicles. Sales price is adjusted for the like kind TRADE-IN (vehicle traded for another vehicle, a boat traded for another boat). New manufactured housing (mobile homes) are taxed at 65% of retail sales price. Used manufactured housing is exempt. Taxes are collected by Indiana dealers. Vehicles purchased from individuals or from out-of-state dealers pay use tax to the license branch at the time of title application. A CREDIT for similar taxes already legally imposed and paid in another state is allowed upon providing documentation of such. This credit is limited to the amount of the Indiana tax liability. Additional use tax due (up to 6%) will be collected at the time of title application. No refund available for excess tax paid to another state. NON-RESIDENTS purchasing vehicles in Indiana are exempt from tax if the vehicle is to be immediately taken out of state to be registered/plated in another state. MILITARY PERSONS are not exempt from above provision.