SUBJECT: Sales of Motor Vehicles and Trailers
DIGEST OF CHANGES: Apart from technical, nonsubstantive changes, Section V, Subsection A, regarding abandoned vehicles, and Subsection B, regarding repossessed vehicles, have been changed to clarify when a sales tax bad debt deduction is available to retail merchants. Also, Section II, Subsection B, has been changed to clarify that motorized and non-motorized recreational vehicles are like-kind.
I. INTRODUCTION
Generally, the sale of any motor vehicle or trailer is subject to Indiana sales and use tax unless such transaction is entitled to a statutory exemption.
If a motor vehicle or trailer is purchased from a registered Indiana dealer, the dealer must collect Indiana sales tax and provide to the purchaser a completed Form ST-108 showing that the tax has been paid. If the purchaser claims an exemption and tax is not collected by the dealer, the statement at the bottom of Form ST-108E must be completed disclosing the reason code for the exemption. It must also be signed by the purchaser. When a purchaser claims an exemption on Form ST-108E, the dealer must retain a completed copy of the ST-108E exemption certificate to document the exempted sale. An exemption form ST-105D may be used to document dealer-to-dealer sales that are exempt for the purpose of resale.
See the bulletin here:
http://www.in.gov/legislative/iac/20120530-IR-045120259NRA.xml.html
