Indiana—Sales and Use Tax: Taxpayer Not Entitled to Casual Sales Exemption on Recreational Vehicle Sales

INDIANA: A recreational vehicle business (taxpayer) was required to remit and collect Indiana sales tax on sales of recreational vehicles (RVs) to its customer because it was not entitled to the casual sales exemption. Generally, Indiana gross retail tax is not imposed on gross receipts from casual sales except for gross receipts from casual sales of motor vehicles and sales of rental property. Further, a casual sale is an isolated or occasional sale by the owner of tangible personal property purchased or otherwise acquired for his or her use or consumption, where he or she is not regularly engaged in the business of making such sales. In this matter, the taxpayer, an S corporation, rented and occasionally sold RVs. The taxpayer argued that it was primarily engaged in the business of renting RVs and, therefore, its sales of RVs were exempt casual sales. But, it was noted that the taxpayer was not entitled to claim the casual sale exemption because the sales of 10 RVs were not isolated or occasional. Moreover, the casual sales exemption clearly excludes motor vehicles from the provision. Accordingly, the taxpayer was required to collect and remit tax on its RV sales.


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