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Ill. dealers must register to buy tax-free cars from Ind. dealers;

November 22, 2010
Ind. dealers must collect sales tax from out-of-state customers

Out-of-state dealers must register with the Indiana Department of Revenue and obtain a taxpayer identification number to be eligible for tax-exempt vehicle resale purchases from Indiana dealers. The change took effect July 1, the start of the state's fiscal year. Out-of-state dealers previously were exempted from sales tax simply by completing the Indiana revenue department's Form ST-137. The new requirement is part of changes to Indiana's sales tax law. It now requires Indiana dealers to collect Indiana sales tax on vehicles purchased by out-of-state customers. The new provisions are outlined in Section IV of the revenue department Commissioner's Directive No. 24, which is posted at Illinois dealers can register with the Indiana revenue department by completing Form BT-1. The form is available on-line at From there, click on "Taxpayer Resources." There is no fee to register. Forms submitted by mail take four to six weeks to process; by Internet, about 48 hours. On Illinois residents paying Indiana sales tax on vehicles: Illinois residents will be credited for any Indiana taxes they pay when the register their vehicles in Illinois. Illinois tax law is unchanged insofar as an Indiana resident does not have to pay sales tax on a vehicle if he obtains a drive-away sticker. Detailed questions on these matters can be directed to the Indiana Department of Revenue Tax Compliance at 317- 232-2339.