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  #1  
Old 09-15-2019, 10:56 PM
Av8safe Av8safe is offline
 
Join Date: Jun 2019
Location: Valparaiso, Indiana
Posts: 19
Default 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?

Thanks,
Mitch
Soon to be grinning from ear to ear
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  #2  
Old 09-16-2019, 05:38 AM
DaveO DaveO is offline
 
Join Date: Dec 2012
Location: Greenfield, IN
Posts: 313
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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.
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  #3  
Old 09-16-2019, 06:21 AM
Deweyclawson Deweyclawson is offline
 
Join Date: Jun 2014
Location: Enon Valley
Posts: 186
Default different states, different rates

Every state is different.
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Dewey Clawson
Super Sabre Society
2012 RV10; 1993 RV6A; 1947 Cessna 140, in progress
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  #4  
Old 09-16-2019, 12:02 PM
GWZ GWZ is offline
 
Join Date: May 2009
Location: Greenfield, IN
Posts: 113
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Itís been 7 years but when I bought my 9A I paid indiana sales tax.
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2002 RV-9A 150hp
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  #5  
Old 09-16-2019, 12:19 PM
BobTurner BobTurner is offline
 
Join Date: Dec 2011
Location: Livermore, CA
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Quote:
Originally Posted by GWZ View Post
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.
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  #6  
Old 09-16-2019, 05:35 PM
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f1rocket f1rocket is offline
 
Join Date: Jan 2005
Location: Martinsville, IN
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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.
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Greenwood, IN

www.pflanzer-aviation.com
Paid through 2043!
Lund fishing Boat, 2017, GONE FISHING
RV-12 - Completed 2014, Sold
427 Shelby Cobra - Completed 2012, Sold
F1 EVO - partially completed, Sold
F1 Rocket - Completed 2005, Sold
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  #7  
Old 09-16-2019, 09:14 PM
ty1295 ty1295 is offline
 
Join Date: Aug 2011
Location: Jeffersonville, IN
Posts: 297
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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.
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  #8  
Old 09-16-2019, 09:37 PM
Av8safe Av8safe is offline
 
Join Date: Jun 2019
Location: Valparaiso, Indiana
Posts: 19
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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....
Mitch
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Soon to be RV7 caretaker/operator
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  #9  
Old 09-17-2019, 06:53 PM
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f1rocket f1rocket is offline
 
Join Date: Jan 2005
Location: Martinsville, IN
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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.
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Randy Pflanzer
Greenwood, IN

www.pflanzer-aviation.com
Paid through 2043!
Lund fishing Boat, 2017, GONE FISHING
RV-12 - Completed 2014, Sold
427 Shelby Cobra - Completed 2012, Sold
F1 EVO - partially completed, Sold
F1 Rocket - Completed 2005, Sold
RV-7A - Partially completed, Sold
RV-6 - Completed 2000, Sold
Long-EZ - Completed 1987, Sold

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