indiana state tax commercial vehicle?

Discussion in 'Ask An Owner Operator' started by Jordan TRANS, Mar 6, 2012.

  1. Jordan TRANS

    Jordan TRANS Bobtail Member

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    hi i have a quick question. Im buying a truck in illinois but live in indiana.
    The dealer just called me an said I have to pay in full at time of delivery %7 percent indiana sales tax. Is this true?? I am only asking cuz were talking about 2 grand in taxes an i dont understand why he has to take indiana state tax when the dealer in in indiana. I read on here if you buy in indiana an live in indiana you are tax exempt. does this only apply when buying out of state?? isnt this something i could claim on my taxes or pay at a later date?
    thx guys
     
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  3. Jordan TRANS

    Jordan TRANS Bobtail Member

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    i meant to say dealer is in illinois
     
  4. BigBadBill

    BigBadBill Bullishly Optimistic

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    Do you have your interstate authority? If you do then you should not have to pay tax. IL dealers have been getting audited and THEY have pay the tax and penalty if they don't have the proper documentation on file. Even if you are exempt.

    Send them a copy of your authority and the regulations from IN stating that you do not have to pay tax. That should take care of it.
     
  5. Flightline

    Flightline Road Train Member

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    If you have a contract signed on with a carrier, you can legally use their authority numbers for this exemption also.
     
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  6. Jordan TRANS

    Jordan TRANS Bobtail Member

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    I am signing on with a company an they can give me an intent to hire document is this good enough or do i need an actual signed contract? Thx for the help
     
  7. heyns57

    heyns57 Road Train Member

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    I bought a new IH 4070A in Ottawa, IL in 1973. There was no sales tax. I drove it to Michigan and leased to a Michigan based carrier. When I bought my Michigan base plate, I paid sales tax to Michigan.
     
  8. SHC

    SHC Spoiled Rotten Brat O/O

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    IL requires that the dealer charges tax on all vehicle it sells according othe state the buyer resides in. Indiana does the same thing for those who live in IL and OH.

    All you need is the carriers ICC number and DOT number to be tax exempt. If u live in Indiana, you should also get a EIN for the state (seperate from your federal EIN) so u can buy things for the truck tax free as well while in Indiana (tires, batteries, parts, ect ect) I have my Indiana EIN registered with Freightliner and KW dealer near me and I never pay sales tax on anything.
     
  9. Crazy D

    Crazy D Medium Load Member

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    SHC your federal number should cover that. At least mine does. I don't have an Indiana specific number even though I am based out of St.John.
     
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  10. SHC

    SHC Spoiled Rotten Brat O/O

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    Indiana residents can obtain an IN specific EIN for the state. I did back when I first started, it may not be required, but it doesn't cost anything and makes my tax reporting a lot easier. I know my federal EIN works, but at the dealerships where I set-up accounts, they required me to have an IN EIN to be tax exempt in the state (said so on the IN release from tax revenue form i had to fill out)
     
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