Sales Tax

[Charlie L]

Do any other states limit the sales tax on boats, cars, etc? SC sales tax caps at $300.00. We do have property taxes due every year on them though. The thought of paying 7.5% on a large purchase just makes me cringe.

 

[Pirate]

Sales Tax is more unpleasant as they get bigger. My sales tax alone could have bought a pretty nice luxury car. They get it every time the boat changes hands. It seems to me like the tax had already been paid once.

 

[Sea Ray 300]

At least you ave a cap of $300.
We don't have any cap at all, and the sales tax is abusive on a big ticket item.
And, as said above, they'll charge it again and again, every time a boat or car changes hands.

 

[Dave S]

I'll take the regular sales tax any day over the ridiculous personal property taxes here in South Carolina. Yeah, my sales tax on my 260DA was only $300 but my personal poperty tax will be $2100 this year with similar amounts for every year thereafter. Two years of PP taxes is roughly equivalent to most sales tax rates in other states. So in the third year and every year thereafter I am laying out a lot more money for the "privilege" of owning a boat here in the Palmeto State. Oh....the same thing applies to automobiles as well as Motor Homes, Airplanes, etc.

We do have lower property taxes but believe me they are not offset by PP taxes if you have a boat or like to own nice cars. :smt100

 

[Alex D]

Do any other states limit the sales tax on boats, cars, etc? SC sales tax caps at $300.00. We do have property taxes due every year on them though. The thought of paying 7.5% on a large purchase just makes me cringe.

In VA the watercraft sales tax on boats is 2%, no cap.
In NC watercraft sales tax is 1.5% capped at $1,500 max. for new boats or used boats from dealers. If you buy a used boat from a private owner you do not have to pay any sales tax in NC :grin:

You do however have to pay personal propery tax on all boats in NC and VA :smt089

 

[DavHJ]

Up here in Rhode Island no sales tax and no property tax on boats with motors only. :grin: :grin: If you buy a dingy with motor no tax but if you buy them seperate there is tax. :smt089 \
Dave

 

[H2ONUT]

CT sales tax 6%. On new and or used. Dealer or private sale.

No property tax on the boat, but they charge property tax on the trailer... :smt101

 

[RT 240SD]

In those states, can you get out of the tax if the boat is documented?

 

[BrentJones]

I bought my boat when I lived in Illinois and had it registered there. IL does not have PP tax, but does have high sales tax. A few months later I moved to Missouri and now have to pay PP tax!

 

[aquadancer]

I keep my boat in tax-free Delaware. No sales or property tax on boats. Downside - 45 minute run to the nearest decent anchorage.

There was a legistlation pending (and court case) in Maryland that would allow moving and registering out-of-state boats without collecting additional sales tax IF the owner purchased the boat with no intention of immediately moving it to Maryland. Anyone knows tstatus of this case ?

 

[Alex D]

In those states, can you get out of the tax if the boat is documented?

No documentation only interferes with state titling and registration laws, not tax laws. In general if a boat is USCG documented in cannot be registered becauseit would assign two ID numbers to one vessel. In some states you can or must (confusing) title if your boat is USCG documented

 

[Asureyez]

Florida

Down here they get you either way.

Sales tax is on the entire value of the boat less any trade in value. If you got too good a deal they can tax you on what they THINK you should have paid!

If you bought your boat in another state and then move to Florida and want to use it in Florida waters ... You have to pay to Florida the diffeenc ein sales tax between what you paid another state if lower that Florida In SC you paid ST of $300.00 bucks and in Florida it would have been $2,000. yes you got it ... pay Florida $1,700.00 Bucks!

Don't title in Florida, thats okay, but then you must have a Florida 6 Month Cruising Permit that can cost more than the Sales Tax! Don't have a Florida permit and use the boat in Floridia for longer than the permitted temporary stay, they confiscate your boat.

Howz that for a Welcome to Florida Billboard.

We don't have am Income Tax, but anything else gets taxed.

Just imagine a guy coming to the Boat Show and buys a $1.0 mil dollar new boat ... the Sales tax is 60 Large!

This is why so many large boats are sold and registered in the Cayman Islands ... no sales tax. The boats move between taxing districts like gypsys and avoid paying importation tax, sales tax and other duties.

 

[Charlie L]

I find it very interesting to see the differences from state to state. I know they will get the money from us one way or another, either all at once or over time.

Dave,

I see you're point, at the time I purchase my boat the sales tax was 5% so I probably would have paid roughly $1200 bucks in tax if it wasn't for the cap. I don't remember right off what my property tax on the boat is, but I'm guessing somewhere around $250 to $300 a year so over time they'll get their money. It is easier for me to pay a few hundred a year vs all at once, and if you do trade often it may work out a little better than paying the full sales tax.

 

[Alex D]

I have never understood property tax ... you pay tax on something every year which you bought with already taxed dollars. Knucking futs! :smt013

 

[Pirate]

No doubt that we need a much smaller government.

 

[Sea Ray 300]

On top of our sales tax at the time of the purchase, we also pay yearly excise taxes on boats, cars, motor-homes, etc..
I assume that it is equivalent to property tax in other states.

 

[BrentJones]

In Missouri, if your boat is documented you pay an "in liue of tax" broken down below.

Purchase Price Tax DuePurchase Price Tax Due
$15,000 or less $500 $300,001 to $350,000 $5,500
$15,001 to $30,000 $650 $350,001 to $400,000 $6,000
$30,001 to $50,000 $1,000 $400,001 to $450,000 $6,500
$50,001 to $100,000 $1,400 $450,001 to $500,000 $7,500
$100,001 to $150,000 $2,000 $500,001 to $550,000 $8,500
$150,001 to $200,000 $3,000 $550,001 to $650,000 $9,500
$200,001 to $250,000 $4,000 $650,001 to $750,000 $10,000
$250,001 to $300,000 $5,000 $750,001 and above See note below

Note: The "in-lieu" boat/vessel tax rate for vessels with a purchase price of $750,001 and above is $10,000 plus an additional $1,500.00 for each $100,000 increment in the purchase price. Example: A vessel with a purchase price of $950,000 would have an "in-lieu" boat/vessel tax of $13,000 ($10,000 + $3,000).

 

[Dancin Dave]

The fed has allowed the sales tax of any large purchases including boats to be a tax deduction from 2005 and ending in 2007. You choose between taking this deduction or your personal income tax if you have one, whichever is higher. The article I just read stated since the irs language was so unclear that you may ammend your tax return this year for that purchase. So if you live in a state with no personal property tax on boats and paid sales tax, utilize this exemption and have a tax free boat purchase. :grin: Hopefully you have no income tax in your state and its win win.

 

[gerryb]

Quite an interesting thread. I never realized how varied and complex the tax issues are from state to state when buying a boat. :smt021 I think Delaware is very attractive but is there another more 'boat friendly' state?

 

[comsnark]

The fed has allowed the sales tax of any large purchases including boats to be a tax deduction from 2005 and ending in 2007. You choose between taking this deduction or your personal income tax if you have one, whichever is higher. The article I just read stated since the irs language was so unclear that you may ammend your tax return this year for that purchase. So if you live in a state with no personal property tax on boats and paid sales tax, utilize this exemption and have a tax free boat purchase. :grin: Hopefully you have no income tax in your state and its win win.

I bought a boat and a car last year . . . .and that deduction did not work out for me.

And that was BEFORE considering the AMT issues.