Can I Register a Car if I Owe Taxes

Whether registering a vehicle for the first time or renewing registration, all customers pay an annual excise tax and a registration fee. Passenger vehicles and recreational vehicles have separate vehicle excise tax rates.

Customers living in certain counties and municipalities will also pay county and municipal vehicle excise tax or wheel tax.

Click the linked icons below to learn more about fees and taxes.

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What do the fees on my renewal notice mean?

• Plate Fees

  Plate fees are additional fees assessed when purchasing certain types of license plates (i.e., Distinctive Plate fee, Personalized License Plate fee, and Amateur Radio fee).

• Supplemental Fee

  A supplemental fee is the fee due for an SGR plate in addition to the SGR plate fee.

• Transportation Infrastructure Improvement Fee (TIIF)

  All motor vehicle registrations are subject to Transportation Infrastructure Improvement Fee. This fee is part of the state's road funding package passed by the General Assembly in 2017. The fee will be paid when the vehicle is first registered and at every renewal.

• Hybrid/Electric Fee

  All hybrid or electric vehicles that are required to be registered are subject to a supplemental registration fee. This fee is part of the state's road funding package passed by the General Assembly in 2017.  The fee will be paid when the vehicle is first registered and at every renewal.

What are the different taxes I may pay on a vehicle registration?

• County Tax

  A vehicle is assessed the county vehicle excise tax and wheel tax only when the county in which the vehicle is registered has adopted these taxes by ordinance.

  View County Vehicle Excise or Wheel Tax Rates

• Municipal Tax

  Depending on where you live, some motorists may be required to pay a municipal tax. A vehicle is assessed the municipal vehicle excise tax and wheel tax when the municipality in which the vehicle is registered has adopted these taxes by ordinance.

  Effective  January 1, 2020, the following vehicle types are assessed Municipal Vehicle Excise Tax. They are charged the same amount shown in the Wheel Tax table for the specified vehicle type and weight classification. However, if the amount shown is greater than $25.00, then only $25.00 will be charged, which is the maximum amount allowed to be assessed for Municipal Vehicle Excise Tax.

  • Trailer 3,000 pounds
  • Trailer 9,000 pounds
  • Semitractor ("Tractor Trailer") 11,000 pounds
  • Collector Vehicle – any vehicle type of any weight classification registered as a collector vehicle
  • Military Vehicle – any vehicle type of any weight classification registered as a military vehicle

  View Municipal Vehicle Excise Tax or Wheel Rates

• Vehicle Excise Tax

  Vehicle excise tax is an annual tax that must be paid in order to register a vehicle in Indiana. Most vehicles are subject to the vehicle excise tax. Vehicle excise tax is either a flat rate or based on the value and age of the vehicle. Generally, excise taxes are used to maintain roads, streets, highways, bridges and other infrastructure within the state or a local area.

  Learn More About Excise Tax Rates

• Donate Life

  Donate Life is a state-authorized non-profit organization that maintains the Indiana Donor Registry. During a registration transaction, customers have the opportunity to make a donation that will help Donate Life educate Hoosiers about how to register as an organ donor.

When am I entitled to any excise tax credits or refunds?

• Excise Tax Credits/Refunds for Vehicles Sold or Destroyed

  If you have sold or destroyed (total loss) a vehicle, you may apply to receive a credit/refund of a portion of the Indiana vehicle excise taxes by submitting Application for Vehicle Excise Tax Credit / Refund – State Form 55296.

  Only vehicles charged Vehicle Excise Tax, Recreational Vehicle Excise Tax (RVET), County Vehicle Excise Tax, and Municipal Vehicle Excise Tax are eligible to receive a Vehicle Excise tax credit or refund. Proof that the Vehicle was sold, destroyed, or otherwise disposed of is required in order to apply for a credit or refund. The documents that may be used as proof include, but are not limited to:

  • Bill of Sale – Must contain the name of purchaser, date of sale, hull identification number (HIN), selling price, and signature of the seller.
  • Certificate of Gross Retail or Use Tax (ST-108) – State Form 48842 – Must be completed by dealer and show the watercraft was traded in.
  • Copy of assigned title, front and back.
  • A statement from the insurance company that states the vehicle was a total loss. The statement must include the vehicle's VIN.
• Excise Tax Credit/Refunds for Vehicles Registered in a Different State

  If you have a vehicle that is registered in a different state, you may apply to receive a credit/refund of a portion of the Indiana vehicle excise taxes by submitting Application for Vehicle Excise Tax Credit / Refund – State Form 55296.

  Only vehicles charged Vehicle Excise Tax, Recreational Vehicle Excise Tax (RVET), County Vehicle Excise Tax, and Municipal Vehicle Excise Tax are eligible to receive a Vehicle Excise tax credit or refund. Proof that the vehicle was registered out of state along with a copy of the Indiana certificate of registration (if available) is required in order to apply for a credit or refund. The documents that may be used as proof include, but are not limited to:

  • A copy of the vehicle's certificate of registration.
  • A registration receipt from the new state of registration

Can I Register a Car if I Owe Taxes

Source: https://www.in.gov/bmv/fees-taxes/vehicle-registration-fees-and-taxes/

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