How to Fill Out Indiana Form ST-108E: Exemption Numbers, Filing, and Rejections

Indiana Form ST-108E is the certificate you file to title a motor vehicle or watercraft without paying the state’s 7% sales tax. To complete it, enter the purchaser and seller information, the vehicle or hull identification number, the purchase price figures on lines 1 through 3, and the single exemption category number (1 through 15) that fits your transaction, then sign and date it. Where the form goes next depends on whether you bought from a licensed Indiana dealer or a private party.

The requirement comes from Indiana Code 6-2.5-9-6, which bars the state from issuing a title unless the tax was collected or a valid exemption is documented.¹ You can download the current version of the ST-108E from the Indiana Department of Revenue at forms.in.gov.

Before You Start

Have the bill of sale, the vehicle title, and any supporting tax documents in front of you. You will also need an identification number for the purchaser field: a Social Security Number for individuals, a Federal Employer Identification Number for businesses, or an Indiana Taxpayer Identification Number for nonprofit organizations.² That field is mandatory on every ST-108E. Leaving it blank makes the form incomplete.

Filling Out the Form

Purchaser and Seller Information

Print the full legal name and mailing address of both the buyer and seller. Enter the purchaser’s identification number in the space provided.

Vehicle or Watercraft Details

Enter the year, make, and model of the vehicle, along with its 17-character Vehicle Identification Number. For a boat, enter the 12-character Hull Identification Number instead. The HIN sits on the upper right side of the transom, or on the starboard side near the stern on boats without a transom.² Every character here has to match the title and bill of sale exactly. One transposed digit in the VIN will send the paperwork back from the BMV.

Purchase Price Lines 1 Through 3

Lines 1, 2, and 3 must be completed on every ST-108E regardless of which exemption you claim. Line 1 is the total purchase price. Line 2 is the trade-in allowance if a like-kind exchange was involved. Line 3 is Line 1 minus Line 2. If the transaction is a gift and no money changed hands, enter zeros rather than leaving the lines blank.²

Exemption Number and Signature

Write the number of the exemption category that applies to your transaction in the space on the front of the form. Some categories require you to fill in extra fields, which are covered in the next section. Sign and date the form. Your signature certifies that the transaction qualifies under the exemption you selected.

Picking the Right Exemption Number

The ST-108E lists 15 numbered categories. You pick one. Choosing the wrong number, or leaving the number blank, will get the form rejected, and claiming an exemption that does not actually apply can later be assessed as unpaid tax plus penalties.

The categories most private buyers and small organizations use:

Exemption 1 — Government purchase. Vehicles or watercraft bought by Indiana or federal government units or their agencies, under Indiana Code 6-2.5-5-16, when the property is used primarily for governmental functions.³
Exemption 2 — Nonprofit organization. Vehicles bought by organizations operated exclusively for religious, charitable, or educational purposes and used for that exempt purpose. You must enter the organization’s 13-digit Indiana Taxpayer Identification Number and LOC number on the form, and the nonprofit’s name must appear on the title. Under Indiana Code 6-2.5-5-25, qualifying organizations also must have filed an exemption application with the Department of Revenue within 120 days of formation and must renew every five years.²⁴
Exemption 4 — Agricultural and production equipment. Trucks that will not be licensed for highway use and are directly used in manufacturing, mining, refining, or harvesting agricultural commodities. The equipment must be predominantly used for exempt purposes, meaning more than 50% of its use. Vehicles registered with farm plates do not qualify.⁵
Exemption 6 — Public transportation. Vehicles or watercraft predominantly used (more than 50%) for hauling persons or property for hire. Write your USDOT number on the back of the form. Indiana Code 6-2.5-5-27 requires the property to be directly used in providing the transportation service.⁶⁷
Exemption 7 — Gift or inheritance. A transfer between individuals where no money or anything of value changes hands. A loan assumption counts as consideration, so if the recipient takes over payments and was not already on the original loan agreement, the exemption does not apply. Submit a copy of the original security agreement with the title paperwork if a loan is involved.²
Exemption 8 — New Indiana resident. You previously titled and licensed the vehicle in another state as a genuine resident there and then moved to Indiana. Complete the New Resident Statement section on the front of the form.²
Exemption 11 — Direct relative transfer. Complete the Direct Relative Identification Statement on the front of the form.
Exemption 12 — Raffle or prize. A vehicle received as a prize or raffle from a nonprofit. Submit a valid IRS Form 1099-MISC or an affidavit from the nonprofit with the title paperwork.²

The remaining numbers cover more specialized situations: adding a lienholder without changing the owner (Exemption 3), registered retail merchants acquiring vehicles for a rental or lease fleet (Exemption 5), licensed dealers buying for resale inventory (Exemption 9), and transactions where sales tax was already paid to a dealer not licensed through the BMV (Exemption 15). Each has its own documentation requirements printed on the form.

Where to Turn It In

If you bought from a licensed Indiana dealer, give the completed ST-108E to the dealer at the time of sale. The dealer keeps the original on file to document why no tax was collected and handles the title and registration with the BMV on your behalf.

If you bought from a private party, received the vehicle as a gift, or inherited it, bring the completed ST-108E to a BMV license branch when you apply for the title. The clerk reviews the form, verifies the exemption, and processes the title without collecting the 7% tax. Without this form the BMV will require you to pay the tax before issuing a title, because that is the default under Indiana Code 6-2.5-9-6.¹

Mistakes That Get the Form Rejected

Mismatched VIN or HIN. If the identification number on the ST-108E does not match the title or bill of sale character for character, the BMV will send the paperwork back.
Missing identification number. The SSN, TID, or FEIN field is mandatory on every exemption.
Wrong exemption number. Choosing a category that does not actually apply is a bigger problem than a clerical fix. The Department of Revenue can later assess the full tax plus penalties.
Calling a loan assumption a gift. Taking over someone’s car payments is consideration. Exemption 7 does not apply unless the recipient was already on the original loan agreement.²
Nonprofit name not on the title. For Exemption 2 the organization’s name must appear on the vehicle title. Titling it in a director’s personal name will not qualify.

Keep Your Copy, and What a Failed Exemption Costs

Keep a signed copy of the ST-108E with the bill of sale and any supporting documents. Dealers are required to retain the original certificate on file to support the exempt sale.⁸ Indiana’s records retention schedule for sales tax documents runs six years, so hold your copy at least that long.

If the Department of Revenue later audits the transaction and finds the exemption was invalid, you owe the original 7% tax plus a 10% penalty under Indiana Code 6-2.5-8-1, with interest from the original due date.⁹ A nonprofit that buys a vehicle tax-free under Exemption 2 and then uses it mostly for non-exempt purposes is the classic trigger. The signed ST-108E is your proof that you claimed the exemption in good faith, so treat it as a tax record worth keeping.

1
Indiana General Assembly. Indiana Code 6-2-5-9-6 – Vehicle and Watercraft Title or Aircraft Registration
2
Indiana Department of Revenue. ST-108E Certificate of Gross Retail or Use Tax Exemption
3
Indiana General Assembly. Indiana Code 6-2-5-5-16 – State or Local Government Acquisitions
4
Indiana General Assembly. Indiana Code Title 6 Taxation 6-2-5-5-25 – Exemption of Certain Transactions
5
Indiana General Assembly. Indiana Code Title 6 Taxation 6-2-5-5-2 – Agricultural Machinery, Tools, and Equipment
6
Indiana Department of Revenue. Sales Tax Information Bulletin 12
7
Indiana General Assembly. Indiana Code 6-2-5-5-27 – Exemptions for Property and Services Used for Public Transportation
8
Indiana Department of Revenue. General Sales Tax Exemption Certificate
9
Indiana Department of Revenue. Fines, Fees and Penalties – Section: Sales and Use