Sales Tax

[Sundancer]

In Washington State, you pay sales tax, but there was some way around it if you took delivery offshore. I'm not sure how FAR offshore, but somewhere. It seemed like it was designed for the buyers of luxury yachts? I don't know if anybody does this or not, but we've been looking for a big sailboat to add to the fleet and wondering if we could get around the tax by doing this!

 

[comsnark]

The rub is registration: When you register the boat in your state, they force you to prove sales tax paid. It works that way in NJ and PA (done registration in both)

Now, if the boat is big enough to be "documented", that could be a factor.

Also, I have friends who have a "boat partnership". They did their paperwork in Deleware. Probabaly because that state has no sales tax to contend with.

 

[waterlogged]

Zero sales tax in NH :smt001 Just the annual registration fee which averages a few hundred.

 

[Arizona240DA]

Would you believe that a private party boat sale in AZ has zero tax on either side....no joke.

 

[Turtlesboat]

yeah you got to love that "what we think it's worth" tax. I almost got hit with that here in NYC. sales tax in nyc is 8.25%, it was collected a few times since the boat is used. registration was like $35 so that was a relief. If I had property tax on top of that!!!! I'd have to kill someone. NYC now has a "use" tax so if you bought anything outside of the city and live in the city, you have to pay the "use" tax which I think is 3%.

 

[Alex D]

Would you believe that a private party boat sale in AZ has zero tax on either side....no joke.

Same in NC as I earier mentioned. Even if a broker is involved as long as the transaction is between private parties AND it is a used vessel (prior titleing, documentation or registration), it is sales tax free.