Indiana Administrative Code › Title 45 - DEPARTMENT OF STATE REVENUE › Article 2.2 - SALES AND USE TAX › Rule 3 - Use Tax › Section 3-5 - Use tax; motor vehicles

Current through July 10, 2024
Authority: IC 6-8.1-3-3
Affected: IC 6-2.5
Sec. 5.
(a) For
				purposes of the state gross retail tax and use tax, transactions representing
				isolated or occasional sales of vehicles required to be licensed by the state
				for highway use in Indiana shall constitute retail transactions under the
				provisions of this section. Every sale by a resident or nonresident person who
				is not a retail merchant as defined in this act of a vehicle required to be
				licensed by the state for highway use in Indiana shall be deemed a retail
				transaction and the use of such vehicle shall be subject to the use tax which
				shall be paid by the purchaser to the Bureau of Motor Vehicles at the time of
				the licensing of the vehicle by the purchaser.
(b) The sale of any vehicle required to be
				licensed by the state for highway use in Indiana shall constitute selling at
				retail and shall be subject to the sales or use tax unless such purchaser is
				entitled to one or more of the exemptions as provided on form ST-108.
(c) If the vehicle is purchased from a
				registered Indiana motor vehicle dealer, the dealer must collect the tax and
				provide the purchaser a completed form ST-108 showing that the tax has been
				paid to him; or if the purchaser claims exemption and no tax is collected by
				the dealer, the certificate at the bottom of form ST-108 must be completed and
				signed by the purchaser. Title applications on sales by registered dealers
				without a form ST-108, completed by the dealer, will not be accepted. The
				ST-108 must be attached to the revenue copy of the title application (TA) by
				the license branch. Whenever a purchaser claims exemption on the reverse side
				of form ST-108, the dealer must retain a completed exemption
				certificate.
(d) On any vehicle
				which is not purchased from a registered Indiana dealer, the license branch
				must collect the use tax at the time of registration unless the purchaser is
				entitled to claim exemption from the tax for one of the reasons shown on the
				reverse side of the form ST-108. When the tax is collected by the license
				branch, a person will be required to have an affidavit signed under penalty of
				perjury by the seller that contains the actual selling price of the vehicle.
				However, in absence of an affidavit the buyer will be charged on the average
				selling price for that vehicle, as determined under a used vehicle guide. The
				affidavit would be attached to the title instead of an ST-108 in the situation
				above; however, in the absence of the affidavit the amount of the selling
				price, trade-in, and the amount subject to the use tax must be noted on the
				title application (TA) by the license branch.
(e) If the purchaser claims exemption on a
				vehicle not purchased from a registered dealer, the ST-108 must be completed by
				the customer or the license branch and attached to the revenue copy of the
				title application (TA) by the license branch. The ST-108 must show the specific
				paragraph under which the exemption is claimed, and be signed at the bottom of
				the form by the purchaser.
(f)
				Exemptions from the sales tax will not be allowed except for the reasons listed
				on the reverse side of the revised form ST-108.
(g) The dealer or license branch must collect
				sales tax in the usual manner from any purchaser claiming exemption from the
				sales tax for a reason other than those shown on the ST-108. The purchaser may
				apply for a refund of this tax from the Indiana Department of Revenue, Sales
				Tax Division.
(h) The deduction for
				trade-in allowance applies only to vehicles traded-in and does not apply to
				other property, either personal or real, which is traded on a
				vehicle.
(i) The assumption by the
				purchaser of an installment contract or other obligation on a vehicle is
				subject to the tax on the amount of the obligation plus any other consideration
				given.