Rep. Yakym Proposes Tax Fix for RV Dealer Inventory

It won’t be the first time that legislators from the area have tried to fix a problem that’s been lingering for years ― likely the result of a drafting error while the legislation was being adopted.

Congresswoman Jackie Walorski, who died in a car accident last August, and former Sen. Joe Donnelly, now serving as the ambassador to the Holy See, also tried to fix the issue that involves the deductibility of interest charges that RV dealers pay to maintain an inventory on their lots.

When the tax legislation was passed, it allowed dealers to only deduct interest on the floor plans they maintain for motorized vehicles ― meaning cars, trucks, boats, jet skis, motorcycles and even motorhomes.

Rudy Yakim

Travel trailers, which now comprise about 88% of total sales, were inadvertently omitted from the legislation, meaning that dealers have been unable to deduct the expense over the past several years, which Yakym and co-sponsor Dina Titus, D-Nevada, hope to fix with a bill they recently introduced.

According to the most recent estimate, the nation’s RV dealerships were paying about $4.5 million a year in unfair taxes on the towable trailers in their floor plans because of the error, according to Yakym.

Click here to see the complete South Bend Tribune article.

Source: https://rvbusiness.com/rep-yakym-proposes-tax-fix-for-rv-dealer-inventory/