VAF Forums

VAF Forums (
-   Midwest (
-   -   Indiana sales tax on homebuilt brought into state (

Av8safe 09-15-2019 09:56 PM

Indiana sales tax on homebuilt brought into state
I am going to be purchasing an RV from a state with a fly away exemption and bringing it home to roost in Indiana. Looking at the Indiana Tax Code it seems that home built aircraft are exempt from sales tax and only subject to annual excise tax.

Anyone have any experience with Indiana or know a Indiana Aviation Tax Account that can easily answer this question?

Soon to be grinning from ear to ear

DaveO 09-16-2019 04:38 AM

I had to pay sales tax on RV parts when I built and registered my RV-7A. I cannot imagine that Indiana would overlook an opportunity as you register your newly acquired RV. But I hope you are right, keep us posted.

Deweyclawson 09-16-2019 05:21 AM

different states, different rates
Every state is different.

GWZ 09-16-2019 11:02 AM

Itís been 7 years but when I bought my 9A I paid indiana sales tax.

BobTurner 09-16-2019 11:19 AM


Originally Posted by GWZ (Post 1373986)
Itís been 7 years but when I bought my 9A I paid indiana sales tax.

The constitution forbids states from taxing interstate commerce, but many get around that by calling it a Ďsales or USE taxí. First see if IN has a use tax. If not, youíre in the clear.

f1rocket 09-16-2019 04:35 PM

You will owe sales tax when you register the airplane with the FAA. The Dept of Revenue gets a data feed from the FAA. They will send you a letter and you will need to show proof that you can paid sales tax or they will collect it from you.

ty1295 09-16-2019 08:14 PM

Just a data point being I live in Indiana myself but my airplane is in a hangar in another state. That situation avoids any Indiana registration or taxes. There is a form I have to fill out every year though, but Indiana was very helpful in helping to do it for me.

Av8safe 09-16-2019 08:37 PM

Spoke with the Indiana Department of Revenue today and discussed clause E. On the AE-7 (registration, excise, sales tax) form. The second bullet under that clause is an exemption of sales tax for home built aircraft if you can show that taxes were paid on the kit etc...

They stated it seems kind of gray whether that would apply for my purchase, but if I can come up with the receipts they will accept them and reduce/eliminate the sales tax. Sound too good to be true, so I am bracing for the tax man.

I also phoned an Indiana based Aviation Tax Accounting firm and spoke with someone who then called the Indiana DIR. he called me back and said he spoke to the same person I did and got the same story, but was left with the impression that they will not apply the exemption.

Cha Ching....

f1rocket 09-17-2019 05:53 PM

As a follow up, I showed proof that I paid out of state sales tax in my tax return during the years i built. They did not charge me when I registered.

All times are GMT -6. The time now is 11:21 AM.