which states dont collect tax?

Friends/neighbors of mine bought a new yacht a few years ago, registered it their home state, but kept the boat exclusively in Ohio.

They found out the hard way, when the State of Ohio presented them with an $80,000 tax bill, that agents actually walk the docks looking for boats based in OH that have failed to pay tax there.
 
Woody said:
I thought you said you paid $30,000 for your boat. Maybe they made a mistake calculating your sales tax.
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You're correct, I got my numbers backwards. I paid nearly $3000.00 in tax and $400.00 in licensing and other "fees"

Anyways it's amazing that they can justify re-collecting tax on something that has already been taxed.
 
Nehalennia said:
You're correct, I got my numbers backwards. I paid nearly $3000.00 in tax and $400.00 in licensing and other "fees"

Anyways it's amazing that they can justify re-collecting tax on something that has already been taxed.
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That's why it's called "Sales Tax". A couple times when selling my old car(I don't trade) and buying a new one timing as been such that the dealers would run my used car sale through making it look like a trade. I would split the tax savings with the buyer of my old vehicle. You have to have a cooperative dealer. A little harder to do with boats I know.
 
Most states have a deal when you trade in a boat and buy a new one you are taxed on the DIFFERENCE, not the whole amount. Michigan just keeps charging over and over again, Go figure...
 
Woody said:
That's why it's called "Sales Tax". A couple times when selling my old car(I don't trade) and buying a new one timing as been such that the dealers would run my used car sale through making it look like a trade. I would split the tax savings with the buyer of my old vehicle. You have to have a cooperative dealer. A little harder to do with boats I know.
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I realize it's a sales taax, but in my opinion all items should only be able to be taxed once. I know it's a common model for revenue for many states, but it seems ridiculous. I'm sure the reason it remains in place is so that used items don't have any more advantage over New, keeping the Businesses happy.

Petep said:
Most states have a deal when you trade in a boat and buy a new one you are taxed on the DIFFERENCE, not the whole amount. Michigan just keeps charging over and over again, Go figure...
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Well I sold my old boat in July '07 to a private party and bought the "new to us" one in Dec from a Private party. I believe the only way to get the "tax credit" is if you run the transaction through a dealer.
 
I suppose they could do away with sales tax but replace it with what? Maybe increased income tax or property tax. Somehow they have to get what they need. How much is truly needed is the thing I am always wondering about.
 
surprisingly, in socialist NJ, if you trade a car in, you pay sales tax only on the difference (one reason to consider trading). not sure if that applies to a boat transaction.

also in NJ, there are Urban Enterprise Zones, where sales tax is 1/2 off. examples are perth amboy, camden, wildwood, trenton, irvington, asbury park and long branch. now if you could find a boat dealership in one of these areas, you'd be sitting pretty. i dont think it applies to buying a used boat from a guy in perth amboy, or buying one from a guy in perth amboy and you register it in long branch. it seems to pertain only to businesses.
 
Remember there is also use tax, which is like sales tax but is charged when you buy something in a non tax state but look to register it in a tax state. If you live in New Jersey and buy a boat in Delaware you will not have to pay sales tax in Delaware, they don't have any. When you register the boat in New Jersey the state will ask if you paid a sales tax to another state, if not you will be charged a 7% use tax by New Jersey.

New Jersey does check on sales tax. I had to show that my documented boat with a home port of Cape May, New Jersey had the sales tax paid on it.

Mr. Salt
Caterpillar C-12s
2001 540 CPMY
Cape May, NJ
 
Woody said:
I suppose they could do away with sales tax but replace it with what? Maybe increased income tax or property tax. Somehow they have to get what they need. How much is truly needed is the thing I am always wondering about.
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Yeah the how much is what's somewhat offensive. Maybe a Flat fee on Used sales for licensed vehicles. The problem is if you by $500 car and have to pay a $500 fee, that a stretch. So I suppose it could be a percentage with a cap of $X.

But if the guy Paid $89,000 for it new That's $8K in Sales tax
Then $3k from me

That's $11,000 for the State in sales tax.
 
New Jersey does check on sales tax. I had to show that my documented boat with a home port of Cape May, New Jersey had the sales tax paid on it.
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of course they do. years ago, if your boat was documented you didnt have to pay sales tax b/c the boat was "registered" with the federal govt, not with the state (thus no numbers on the side). the only way states could collect was when you registered the boat. no registration, no tax. and that was legal. once everyone started documenting, the states (probalby in the early 80s) got smart and required state registration regardless of documentation status. was this for our safety or for national security?? nope, it was to reach into your pocket for a big lump sum initially, and the peck away annoyingly each year for a little amount for renewal. at least we dont have personal property tax up here, and i dont have to put ugly numbers on the side of the boat:thumbsup:
 
Mississippi......no sales tax if you buy from an individual. 7% if from a dealer. BTW, you get to boat year-round.
 
Here in Iowa, we not only have the 5% state tax listed on the chart linked to, but a 'local option sales tax'. Since our county has 'opted' to charge this optional tax, the sales tax is higher. Happily, the city hasn't yet opted to add a bit more. Each time a boat changes ownership it's taxed -- but for some reason the local option portion of the tax doesn't apply. Go figure.
 
Nehalennia said:
I realize it's a sales taax, but in my opinion all items should only be able to be taxed once.
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Collecting sales tax every time an item is sold is not much different than double or triple taxation of income. Example, if I own stock in a corporation, then that corporation has its income taxed, then sends me a dividend check every quarter. I report that dividend as income, and pay tax on it again.

Despite what politicians may say, tax systems are (supposedly)designed to raise revenue to fund the cost of government. Then politicians tweak the system to reward certain groups of taxpayers at the expense of others, and it's called "fairness".

Here in Tennessee, we have a relatively high state sales tax rate, but the total tax paid is capped for large purchases such as cars and boats. We also have county sales taxes that are at a lower rate, but not capped. So far individuals do not have their cars and boats assessed for personal property taxes, but a car or boat owned by a corporation or LLC will be taxed annually. We have no state income tax on 'earned' income for individuals (wages, salaries and tips), but do pay a state income tax on 'unearned' income such as dividends and interest. Corporations and LLCs pay a state income tax.
 
Woody said:
I suppose they could do away with sales tax but replace it with what? Maybe increased income tax or property tax. Somehow they have to get what they need. How much is truly needed is the thing I am always wondering about.
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They COULD think about the way they spend what they have, methinks.

When I look at my tax return and figure out how much I made, I can't just say, "I did a bad job budgeting what I had, so now I will just go and take more money from my company next year."

Oh, wait. I guess I could, but eventually my company would FAIL unless I operated it with increasing efficiency, and even that's got its limits. I guess I can only ask my clients to pay more. I cannot demand it.

Does anyone follow that?
 
This all goes back to the need for better fiscal mgmt by government (is that an oxymoron?). You can't keep creating program after program, and expect that you don't need to pay for them. Back off/review/shutdown the programs that aren't helping folks that really need it, the old, the sick, the crippled. And the rest of the world needs to figure out how to stand on their own 2 feet (this especially includes corporations looking for government handouts). If a company fails ... then they didn't have the right stuff(whether that's distribution, finances, product mix, business plan, etc.) to make it, tough.

I'd like to see a flat tax. Everyone pays the same. And that's all the guvmt gets, and they have to make do with that, and can't make more money because they need it.

-VtSeaRay
 
tmhudson2 said:
........Despite what politicians may say, tax systems are (supposedly)designed to raise revenue to fund the cost of government. Then politicians tweak the system to reward certain groups of taxpayers at the expense of others, and it's called "fairness".....
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Well maybe we should invite Mr. Fairness to a "Tea Party"
 
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