Is there any? From what I dug up so far it looks like if it's between a two individuals there is none, but if it's sold by a dealer there is. Sound right?

I live in MN and am buying a boat, motor, trailer. If you buy from a dealer you are charged sales tax on the whole purchase price of boat, motor, trailer regardless i believe. If you buy from a private party have an itemized bill of sale completed with the seller at the final transaction which clearly lists only the value of the trailer. You will only be charged the sales tax on this value of the trailer. This info was verified by two MN license bureau employee's who both confirmed. A good baseline for trailer value is $1,500 for a good condition used trailer. You can rise/lower based on the year, condition, etc. The actual boat registration is from the MN DNR and they are NOT considered a tax agency so they cannot charge sales tax on the value of the boat and the DMV is only concerned about licensing the trailer which will be lifetime unless it exceeds 3,000 lbs. Hope this helps, if you have any doubts of this info please call a license bureau and be polite they actually gave some very good advice.

Tim

Yes, Sales Tax only on the Trailer!

And make sure to actually look at the manufacturer's plate for the trailer before registering it with the DMV. Register it in the 3000 lb + class incorrectly, and you forever have to get yearly tabs. Register it too low, and risk forever getting tickets.....it is nearly impossible to change it once registered. Been trying for years now.....luckily, on the "get tabs every year side", not like another boater I met who was having the other problem.....

Thanks for the replies. For the trailer, does the 3,000 lbs refer to the trailer capacity rating or the actual weight of the trailer??? I'm guessing you mean the rating...

The 3,000 lb. rule must be the based on the trailer capacity and not the actual trailer weight. I also believe 3,000 lbs. is the break point requiring a tandem axle grouping and brakes on both axles.

Be absolutely sure you only pay on the trailer. I lived in IL last year and had bought a boat from a guy in MT. Went to currency exchange to register and they said to make an itimized list of what the HULL ONLY cost. No trailer, electronics, engines, etc.. Ok so the Hull of my 620 was entered and I gave them a sales receipt of the transaction. Fast forward to 3 weeks ago and I get a letter from the IL IRS saying I'm being audited for the price of the boat. They say I owe on whole package plus a 15% penalty. I'm still fighting but my accountant and lawyer both say I'll have to pay the ~2500$ back taxes + penalty due.... Really bites when I was going off the advice from the currency exchange... Plus I had a problem of not having my old sales receipt and info so they were going to charge me "fair market value" which was over 10K what I paid on the rig. Im in a very messy situation right now and not too happy....

Just a heads up and make ABSOLUTELY sure you're paying the correct taxes...

And if living in MN to be safe make sure to take possession of the boat in the state of MN. It should be considered an interstate sale if you take possession in your home state, in my case happens to be MN. Make this mistake and the state you bought the boat can come later for their taxes.

I am purchasing a boat, motor and trailer from a private party in Indiana and live in Minnesota and wanted to find out if I'm going to have to pay sales tax on the purchase of the boat, motor and trailer or will I have to pay tax on the trailer only?

I am purchasing a boat, motor and trailer from a private party in Indiana and live in Minnesota and wanted to find out if I'm going to have to pay sales tax on the purchase of the boat, motor and trailer or will I have to pay tax on the trailer only?

For a MN resident you pay sales tax on trailer only.

https://www.revisor.mn.gov/statutes/?id=169.79

one of the few good things the state of MN ever came up with....

Nope. But there will be on the trailer.

just talked the MN IRS and he told me that there is NO sales tax on a used boat between individuals and he sent me an email verification.

Why do you think Minnesota Boat dealers hate this law?? Buyers can save some serious cash if they buy their boat from a private party, just think if you were buying a 30k+ boat, at 6.875%....OUCH!!!

just talked the MN IRS and he told me that there is NO sales tax on a used boat between individuals and he sent me an email verification.

Did the MN IRS include the fact that you are responsible for donating more tax money to great state according to the value of the trailer?

NOTE: My local dealer tells me the dealers are lobbying the gov't to level the playing field. We should vote on the decison.

1 - Dealers will no longer be required to charge taxes on the entire purchase (boat, motor, trailer) of a used vessel.
2 - Private party sales will now be required to pay tax on the entire package.

My bet - number 2 in a landslide.

Remember Nov. 2012 and bounce some of these greedy moron's to the street or more like back to their millionaire life styles.....

If a resident of a state with no sales tax such as Ore or Montana buys a used boat in Mn do they have to pay Mn sales tax?

If a resident of a state with no sales tax such as Ore or Montana buys a used boat in Mn do they have to pay Mn sales tax?

You pay it in the state your are registering it and will be using it....

just talked the MN IRS and he told me that there is NO sales tax on a used boat between individuals and he sent me an email verification.

Would you PM me a copy of this e-mail. I'm buying a boat from another state from a private party and a trailer from a dealer in that state.
thanks

To be completely prepared, the seller and purchaser should enter into multiple purchase agreements.
1. Purchase agreement to purchase boat
2. Purchase agreement to purchase motor
3. Purchase agreement to purchase trailer
4. maybe more purchase agreements to purchase things like kicker motors, trolling motors, electronics.

In MN, the purchase agreement to purchase Trailer is the only transaction that has sales tax due when the transaction is between 2 private parties. Having a purchase agreement between the buyer and sellor that clearly states the value assigned to the trailer purchase helps put the purchaser in a better position if the value of the trailer is questioned by the state.

Oh, and don't have a gap when filling out the trailer title purchase price, and mistakenly write the amount of the entire transaction, then cross it out, and write in the correct amount for "just" the trailer. At that point, it becomes a forged, worthless document, and you must apply for a duplicate. How do you suppose I know that one....

So a person does not need to present a purchase agreement (from private party)for the boat and motor at the license center, just a clear, signed title, of the watercraft, then only pay for title transfer and boat registration for MN.
Then show a bill of sale from the dealer for the trailer. Pay sales tax, title transfer, and registration only on trailer?