Indiana DOR Updates Sales Tax Rules for Out-of-State Motor Vehicle Sales

The Indiana Department of Revenue (DOR) issued an updated bulletin providing guidance on sales tax collection for motor vehicle sales, particularly addressing special tax rates for vehicles that will be titled and registered in other states. The bulletin incorporates legislative changes from Senate Enrolled Act 243 (2026) that create new restrictions and penalties for motor vehicle purchases by nonresident limited liability companies, partnerships, corporations, and other closely held businesses organized in states without sales tax. Under the updated guidance, motor vehicles destined for out-of-state registration are subject to the destination state’s state-level sales tax rate (capped at Indiana’s 7 percent ...