Indiana DOR Updates Sales Tax Rules for Watercraft, Trailers

The Indiana Department of Revenue (DOR) issued a sales tax bulletin, providing guidance on Indiana sales and use tax requirements for watercraft and boat trailers at the standard 7 percent tax rate. This updated bulletin, which replaces the previous August 2023 version, incorporates policy changes from Senate Enrolled Act 243 (2026), including new restrictions on watercraft and cargo trailer purchases by nonresident limited liability companies, partnerships, and corporations where members are Indiana residents. Key compliance updates include the full taxation of documentation fees (eliminating previous partial exclusions), clarified like-kind trade allowance rules requiring same-type exchanges, and strengthened anti-avoidance provisions that ...