sales tax on used boats??

[dh99]

I am from Canada and I looking for a new boat. The used boat prices are a lot more reasonable in the US than here in Canada.

When you buy a used boat in the US, do you pay sales tax if you buy it from a non-dealer? Dealer? It must also depend on the state, I presume.

I am looking anywhere from Maine to WI, or Minnesota.

I know I will get dinged both provincial and federal taxes when I cross the border....

Thanks

DH99

[peter8]

You won't pay sales tax if you buy from a private owner. But I'm sure you will have to pay sales tax when you register the boat in your state or province. I bought a boat from out of state from a dealer. I paid the 5% North Dakota sales tax . Then had to pay an additional 1/2% tax (wisconsin has 5.5% tax) when I sent in for registration. It seems they get you no matter what or where!! Enjoy your new rig.

[MarkG]

You will not pay any tax at the time of sale on a used boat from an individual. Tax gets collected at time
of registration,paid to the state you are registering it in. Some states tax it, some do not. Wisconsin does,Illinois does not (go figure! ) If buying used from a dealer,you will pay the going sales tax rate in that location. Any difference will normally be made up at registration.

Short answer for your situation taking it to Canada,,,If you buy from an individual,you will not pay any tax at sale. Your only liability will be whatever Canada will want to bring it across and register it.

[MarkG]

Followup....Slight correction on my statement about Illinois individual sale... They will not tax the BOAT at registration,they may tax the TRAILER,depending on the value,as these are treated differently. Trailers are registered and licensed separately with the DMV. Boats are registered with DNR who, at present, do not hit you with a sales tax,(although 3 years ago they tripled all the registration fees for any boat,new or used.)

[dh99]

thanks guys

I appreciate the help..

Time to find a used boat now.

DH99

[Can Man]

Followup....Slight correction on my statement about Illinois individual sale... They will not tax the BOAT at registration,they may tax the TRAILER,depending on the value,as these are treated differently. Trailers are registered and licensed separately with the DMV. Boats are registered with DNR who, at present, do not hit you with a sales tax,(although 3 years ago they tripled all the registration fees for any boat,new or used.)

Sorry Mark but you are wrong about Illinois. You will not get a boat title transfer or a new title in Illinois from the DNR without paying the sales tax. I am in the process now on a boat purchased out of state. I have purchased and received titles on three boats in the last 30 years and it was the same scenario on all three of them. I could elaborate on the titling process but I would prefer not to . I do not want to hijack another persons thread or make my post overly lengthy.
Cheers,
Can Man

[dh99]

Sorry Mark but you are wrong about Illinois. You will not get a boat title transfer or a new title in Illinois from the DNR without paying the sales tax. I am in the process now on a boat purchased out of state. I have purchased and received titles on three boats in the last 30 years and it was the same scenario on all three of them. I could elaborate on the titling process but I would prefer not to . I do not want to hijack another persons thread or make my post overly lengthy.
Cheers,
Can Man


Can Man

Please elaborate, I am interested in hearing you experiences. Are you from Canada? So as I understand when you got the title transfer you paid taxe on the boat. I know this sounds wrong but can the person you bought the boat from give you another receipt indicating a lessor value or do they just go by book value?

DH99

[Unregistered]

I bought a used boat in Illinois and registered it there about 2 months ago. I was required to pay 6.5% sales tax. Bought it from a private seller. Made the payment when doing the title transfer. As far as a low priced receipt, my under standing is you will be taxed on fair market value of the boat if the purchase price is to low. Don't know who figures that out. You might not get caught. I didn't take the chance. Even if you get the boat as a gift, you get taxed. Started in Illinois I believe in 2004. Crooks need their money!! This is in Illinois. I don't know about other states.

[Can Man]

I am not from Canada .
I live in Illinois. I purchased one of my boats in Illinois from another Illinois resident. We both signed two identicle copies of bills of sale. I paid no tax until I applied for a new title in my name. That is when the DNR returned my application for title requesting a certified copy of the RUT25 form that I sent in with my tax payment to the Illinois Dept. of Revenue. I had not sent it in so there was no certified copy to get.
The correct and fastest way to get the title transfered is to send the RUT 25 form along with a check made out to the ILL. Dept. of Revenue for the amount of sales tax on the purchase price that is on the bill of sale.
Include that in the same envelope that the application for title and registration form is in. Also include a seperate check for the title and registration fee.
The sale price we put on the bills of sale were the actual price I paid. I would not consider putting anything less then that on them. A couple of hundred dollars that I could cheat the Dept. of Revenue out of is certainly not worth the risk of getting caught or ruining my reputation.
I sold the above mentioned boat last March.
I am now in the middle of trying to title and register a boat (motor,and trailer) that I purchased from a resident in Kansas. Now this is a whole different ballgame as far as paperwork is concerned. If anyone is interested in that process I can elaborate in another post.

[MarkG]

I stand corrected regarding Illinois tax,thanks for the updates.

I have bought 2 boats and also a snowmobile from Wisconsin individuals in the past and when re registering in Illinois was not required to pay any sales tax at that time. Only the standard title transfer fee from DNR. All paper work was in order,no funny business. But it has been awhile. I guess when Blago raised the fees he also started collecting tax on used individual sales.

( Did not mean to hijack this either )

-MarkG