Used Boat Sales Tax Question

[mikesufka]

Gentleman -

Does anyone know how sales tax works?

I bought a boat from New York, but a Florida company brokered the deal. I was under the impression that if I bought a boat from an individual, there was NOT sales tax, but if I bought a boat from a dealer, then there WAS sales tax?

I live in MN.

Thanks,

Mike Sufka

[RNM018]

In Fl. when you purchase a used boat or vehicle , you pay the sales tax when you register the vehicle/vessel .RICH MARTIN 018

[drasticplastic]

In Michigan you pay the sales tax on motorized vehicles (cars, boats, motorcycles etc.) when you go to the secretary of the state to transfer ownership/title to your name and register it for use. Here that would be 6% of the stated purchase price on the paper work.

[pyro]

Of course, we all know that nobody here puts the true selling price on the bill of sale, they always put something lower, to cheat the tax. And then they wonder why all the blue books' compiled records show such a low average sale price for their hulls...

[Raceman]

It varies from State to State. In Georgia, there is NO sales tax on individual to individual transactions. Where it came from would make no difference................ it's the law in the State that it's being registered in that'll be the determining factor.

[WILDMAN]

I sell boats in Fl. When I sell a boat out of state, I DO NOT collect sales tax. I give a bill of sale. When the buyer registers it in his home state, he pays tax there. You should not have been charged sales tax. Seems to me, they're trying to make a few extra bucks. Tell them you're going to call the State of Fl. Sales Tax office. Better yet, go ahead and call them.

[The Big Al]

Well buyer be warned if you live in NC!

If you live in NC and purchase a boat out of state, (like I did)
You do have to pay sales tax.

But, this is were the problem is.

You go to HWY department to register the trailer, you pay sales tax on trailer only.

You go to Registration office for the boat they do not collect sales tax.

So you will receive a nasty letter from NC sales tax office, with penaltes for Sales tax almost doubling the amount.

I am fighting them right now! I will pay the sales tax amount but not the penalty for a system that does not collect or have forms, instructions that you have to do so.

So you have to pay sales taxes of 3 % of the purchase price without a cap.
If the state you purchased from collects sales tax, then that amount is deducted from the amount due.


Al

[Sam Baker]

Yep, varies by state. In Illinois, you pay sales tax on the boat no matter if you bought it from a dealer or an individual in state or out of state. However, you only pay tax on the trailer if you buy it from a dealer...goofy.

I bought my Allison bass boat and trailer from MN and had to pay tax on everything. Bought my Supersport from an individual from IA and only had to pay tax on the boat.

[BarryStrawn]

I sell boats in Fl. When I sell a boat out of state, I DO NOT collect sales tax. I give a bill of sale. When the buyer registers it in his home state, he pays tax there. You should not have been charged sales tax. Seems to me, they're trying to make a few extra bucks. Tell them you're going to call the State of Fl. Sales Tax office. Better yet, go ahead and call them.

I thought that only worked if you delivered the boat outside the state of Florida. If they take possesion in Florida, I thought you had to collect Florida sales tax.

[ActiveFun]

You pay the tax in the state you register the boat

[B. Vruwink]

Here is Minnesota Law out of the tax rules::


Use tax--What you pay when you use the item for your own USE!!


If ‘iou buy a taxable item for your own use without paying sales tax, you probably owe use tax. The tax rate is the same for both sales and use tax, and the same exemptions appI)
Here are some cases when use tax is due:
• You buy taxable items by mail order, from a shopping channel, over the Internet, etc.. and the seller doesnt collect Minnesota tax from you You buy something exempt intending to resell it in your business, hut instead take it i’ut of inventory for business or personal use.
• A seller in another state or country does not collect any sales tax from you on a sale of an item that is taxed by s linnesota’s law.
• A Minnesota seller fails to collect sales tax from you on a taxable item.
• An out—of-state seller properly collects another state’s sales tax at a rate lower than Minnesota’s. In this case, you owe the difference between the two rates.
Keep track of your purchases subject to use tax and report them when ou report your sales tax. Also, keep a record of the purchases on which mu paid use tax. noting the date reported and paid.
If you are located in an area that has a local tax, be sure to also report local use tax.
Individuals as well as businesses owe use tax on taxable purchases when they have not paid sales tax. An individual, however, can purchase up to $770 in taxable items for personal use without owing use tax. If the individual buys more than $770 in a calendar year, that person owes use tax on all taxable items purchased that year.


Your boat falls under the "use tax" category. Each year when a Minnesota resident files income tax and signs the return you are technically stating you are current in your "use tax" obligation.

It just so happens the boat registration people are the "policemen" for the tax department. When I registered my boat last year that I imported from Europe they were more concerned about the "use tax" due than anything else about the lisencing requirements.

When you bought your boat thru the broker it was the same as if thru a business.

Bruce V.

[Fish]

when you say brokered the deal, was the boat listed by a florida company and you sent the money to a florida company and the florida company sent you the paperwork, and then you picked up a boat located in New york and brought it back to MN?