Circumstances in which there is a rebuttable presumption of evasion of state gross retail and use tax on purchases of certain property; investigation; evidence to rebut presumption; deposit of penalties
Ind. Code § 6-2.5-9-12
in effectSec. 12. (a) The following apply:
(1) There is a rebuttable presumption that the exemption under IC 6-2.5-5-39 does not apply if the purchaser of the recreational vehicle or cargo trailer (as defined in IC 6-2.5-5-39) is a limited liability company, partnership, corporation, or other closely held business organized in another state and a member, partner, or officer of the limited liability company, partnership, corporation, or other closely held business is a resident of Indiana or a nonreciprocal state (as defined in IC 6-2.5-2-5(b)).
(2) There is a rebuttable presumption when a motor vehicle (as defined in IC 9-13-2-105(b)), cargo trailer (as defined in IC 6-2.5-5-39), aircraft, or watercraft (as defined in IC 9-13-2-198.5) is either:
(A) both:
(i) purchased by a limited liability company, partnership, corporation, or other closely held business organized in another state in which at least one member, partner, or officer is a resident of Indiana; and
(ii) titled and registered in the state in which the limited liability company, partnership, corporation, or other closely held business is organized, and that state does not have a gross retail tax or equivalent tax; or
(B) purchased by an Indiana resident and:
(i) transferred to a limited liability company, partnership, corporation, or other closely held business organized in another state and in which the resident is a member, partner, or officer; and
(ii) titled and registered in the state in which the limited liability company, partnership, corporation, or other closely held business is organized, and that state does not have a gross retail tax or equivalent tax;
that the purpose of such registration and titling was to evade paying Indiana gross retail or use tax in violation of this article.
(b) The department may make any reasonable investigation necessary to enforce subsection (a), including entering into an agreement with another state agency or an agency from another state and contracting with third party data service providers.
(c) If an investigation under subsection (b) indicates that an Indiana resident violated subsection (a), the department:
(1) shall provide notice under IC 6-8.1-5-1 or IC 6-8.1-5-3 for the Indiana resident to pay any Indiana gross retail or use tax due, as calculated on the date of purchase of the vehicle, aircraft, cargo trailer, or watercraft and based on the best information available; and
(2) after June 30, 2026, may impose a penalty on the Indiana resident of five hundred dollars ($500), which is in addition to any penalty assessed pursuant to IC 6-8.1-10-2.1 or IC 6-8.1-10-4.
(d) A presumption under subsection (a) may be rebutted by other evidence, such as evidence that:
(1) the vehicle, aircraft, cargo trailer, or watercraft is insured for primary use at an address outside of Indiana;
(2) the vehicle, aircraft, cargo trailer, or watercraft will be permanently stored or garaged at a physical address outside Indiana; or
(3) the Indiana resident owns a secondary residence in the state in which the vehicle, aircraft, cargo trailer, or watercraft is titled or registered.
(e) Upon making a record of the department's actions, and upon reasonable cause shown by the Indiana resident, the department may waive, reduce, or compromise any penalty imposed under subsection (c).
(f) The department shall deposit money from a penalty under subsection (c) in accordance with IC 6-2.5-10-1.
As added by P.L.128-2026, SEC.4.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://iga.in.gov/laws/2026/ic/titles/6Fetched: 10/17/2026