Sales Tax...

[66Skylark]

I have a question about sales tax on a boat…

If I buy a boat in NH or RI and register it in one of those states it is tax-free. (RI will tax you on the trailer, but “The Ocean State” does not collect sales tax on boats.)

I have seen several boats on the net that look good. I’m curious, If I buy a boat from a dealer in a state that charges sales tax, do I pay sales tax at the time of sale? I believe MA only looks for the sales tax when you go to register the boat.

I’m sure every state is different… I’ve seen boats in OH (Actually, that boat is @ Mid Ohio Watersports, maybe he could answer this…), WI and PA.

Anyone in these states know how their state handles the sales tax – due @ time of sale or only due if you register it in that state?

Thanks for your assistance.

Have a great day!

[NautiqueJeff]

RE: Sales Tax...

I bought my boat from Mid-Ohio and registered it here in VA. I paid sales tax to the VA DGIF. Check with Eric, but I'm pretty sure it would be the same for you.

[bkhallpass]

In California, it is a real chore for residents to buy out of state
and avoid taxes. In most cases, if you buy out of state
you will be charged CA sales taxes when you go to register
as was the case for Jeff who bought in Ohio and registered
in Virginia.

To avoid the taxes, the vehicle has to be left in the other state
for a period of some time (I think it's six months). The owner
has to show gas receipts and other proof that the vehicle was
used out of state, etc. It's a real hassle and not really worth it
unless the vehicle costs over $100K. Just over the boarder
near Reno, Nevada, there is a huge lot filled with $200, $300,
$400K motorhomes who are going through the process to avoid the
tax.

For a ski/wakeboard boat, which you actually want to use, it's just
not worth it.

Side note: In CA our sales taxes vary by County. You can't even
go to another county to get cheaper sales tax. The dealer is required to
charge you the sales tax rate in the county in which you live.

BKH

[igkya]

I live in PA and bought mine in MD. I paid PA taxes when I went to register the boat.

[AirJeff]

We live in MN and picked up our boat in WI last year. Sales tax was due when we registered in MN.

[G-man]

But don't forget whereever you pay your sales tax it is now deductble on your Federal Tax Return.

[skinautique]

A lot of times, you will pay the sales tax for the state that you purchase the boat in and then cover the difference between the two states once you register the boat

[igkya]

Skinautique is right, but beware... a buddy tried this and had problems getting it registered. The state wouldn't register until they had the $$$, and the place he bought it from hadn't turned the tax $$$ over to their own state yet (he was holding onto the money). Best bet is to pay them your self in your own state.

[Luke]

I bought my boat in MN and paid taxes on it when I registered it in IA.

[ccskier16]

WI - you buy the boat/trailer/etc. you pay sales tax when you purchase it. No tax for registering it.

[Housers99]

I bought my boat in PA and paid sales tax when I registered it in OH. Of course, the seller "accidentally" wrote a number about six grand lower than what I actually paid when he signed off on the bill of sale we wrote up, resulting in a lower sales tax.

[66Skylark]

Thanks everyone!

Hmmm, 74skier mentions paying the tax to WI at the time of sale, yet AirJeff mentions buying a boat in WI and paying tax in MN. Maybe 74skier paid at the time of sale because he also resides in WI?

I live in MA, but intend to register the boat in NH. (The state whose waters it would be used most on.) If I were registering it in MA I’d be okay paying tax in another state; WI for example. MA would recognize the tax paid to WI. (Just like skinautique mentions, I think the term for this is reciprocity.) I’d have to pay the difference, if WI’s tax was less than 5%. If WI’s tax was more than 5%, I’d be S.O.L., MA wouldn’t refund me the difference.

Since I would be registering it in a state with no sales tax, I’d rather not pay any tax at the time of sale. From the sound of things, most states look for the sales tax when you go to regisiter the boat.

Am I the only one who is sick to death of TAXES - Federal income tax, state income tax, sales tax, property tax, excise tax, capitol-gains tax, etc…? No wonder I can get up on the skis so fast… My pockets are empty!

Thanks again! Have a great weekend!