Indiana Sales Tax On Cargo Trailers And Recreational Vehicles Explained

(INDIANAPOLIS) – The 2020 Indiana General Assembly enacted House Enrolled Act 1059, which amended Indiana Code (IC) 6-2.5-2-5 regarding Indiana retail sales tax on cargo trailers and recreational vehicles. 

As of July 1, 2020, when a nonresident purchases an RV or cargo trailer in Indiana and intends to register the vehicle in a nonreciprocal state (as defined in IC 6-2.5-2-5), the dealer must collect Indiana sales tax at the rate of the destination state where the vehicle will be registered. The rate charged should include only the state sales tax, not local jurisdictional sales taxes, and should not be reduced by any cap, exemption, or other adjustments of the destination state. 

All sales taxes collected, regardless of rate, will continue to be remitted to the Indiana Department of Revenue. 

The dealer should issue an ST-108NR – Certificate of Gross Retail or Use Tax Paid on the Purchase of a Motor Vehicle, Recreational Vehicle or Cargo Trailer For a Nonresident (State Form 52873) to the purchaser as proof of sales tax paid. 

An ST-108NR may not be issued to a purchaser who intends to title and register the vehicle, RV or cargo trailer in Indiana. An Indiana resident who presents an ST-108NR as proof of sales tax paid must return to the dealer and obtain an ST-108 – Certificate of Gross Retail or Use Tax Paid (State Form 48842). 

Dealer forms are located on our website at or through the state forms online catalog at

For additional information regarding sales tax on RVs or cargo trailers, please refer to Sales Tax Information Bulletin #72 or contact the Indiana Department of Revenue Tax Policy division at (317) 233-4197 or