Bill to Fix Tax Issue For Trailer and Camper Dealers

Donnelly met with Launch Fishers members as part of his visit.

Senator Joe Donnelly (D-IN) has introduced a bill designed to fix what he calls a mistake in the 2017 McConnell-Ryan tax bill that has led to an adverse effect on RV trailer and camper dealers. Donnelly says the tax bill "significantly reduced" a tax deduction for dealers, which has led to higher inventory financing costs.

Donnelly, who is the co-chair of the Senate Recreational Vehicle Caucus, says the writers of the tax bill deleted the words "recreational vehicle" and replaced it with the term "self-propelled vehicle," which was supposed to serve as a catch-all. Since travel trailers and campers are not self-propelled, dealers have been unable to fully utilize the tax deduction for non-motorized RVs. 

"Indiana’s RV industry is essential to our state’s economic success with its more than 20,000 Hoosier workers," Donnelly said in a news release. "This bill is a common sense fix that ensures both motorhomes and towable RVs are treated the same under the U.S. tax code."

Donnelly’s bill has been referred to the Senate Finance Committee.