Do I have to pay sales tax?

[AsianAngler]

Hi, Will soon be a new boat owner. Found what I wanted in Oregon (state with no sales tax). I understand that I need to register my boat where I use it. Usually people pay sales tax before registering or prove that they have already paid it. Here is my dilemma... I live in Illinois and until I buy a place in Canada, the boat will be stored in Illinois. However, I do not plan to use the boat in Illinois. I will probably use it in Wisconsin a bit, but primarily in Canada. I don't want to do anything illegal, but if I buy in a state with no sales tax, can I register in a state like Arizona that registers boats owned by non-residents? I do not believe AZ charges sales tax on boats either. Does anyone actually know?

[dessertman]

First of all, if you do not use the boat anywhere, you do not have to register it anywhere. In states that apply sales tax to boats, you usually pay the sales tax when you register the boat, unless you can prove you paid it elsewhere (like if you bought it from a dealer.).
Second, virtually all states may be a little different, so contact the DMV or tax office in the states that might apply to your situation and ask them. (For example, I bought a used boat in Florida from an iindividual and when I went to the DMV in Florida to register/license it, I found out that Florida charges sales tax on the boat but not the outboard motor!)
Third, you are not home free yet: you will want to separately register/license the boat trailer--can't go up and down the highway without a license plate/registration (unless you live in a state that does not require plates on smaller trailers (for example, Utah for single axle boat trailers under 700 lbs.).
Good luck!

[97roughneck]

It doesn't matter what the tax laws are in the state where you buy it, only in the state where you reside. Dessertman is correct that you won't have to pay sales tax until you use it, ie; until you transfer the title into your name. If the seller signs off correctly, you can hold that title indefinitely until you decide what state you want to register in. Just be aware that you only have 30 days to transfer title, legally. After that, you'll pay a penalty. Also, if the title somehow gets lost or destroyed before you decide what state you're registering it in, that boat legally still belongs to the seller. Now if you have a purchase agreement signed by the seller, you have a pretty good case for issuing a duplicate title, but still a hassle. If it was me, I'd have it licensed (sales tax paid) and insured in the state I'm living in now, not the state I may live in someday. But that's just me, I like to sleep well at night.

[97roughneck]

Originally Posted by AsianAngler

I understand that I need to register my boat where I use it.

Not true.

You need to register the boat in the state in which you currently reside, ie; Illinois.

Originally Posted by 97roughneck

Not true.

You need to register the boat in the state in which you currently reside, ie; Illinois.

Well that's not true either. I own boats that are in 3 different states. Texas, Tennessee, and Michigan and all three are registered in the state that they are in. It doesn't make sense to me to pull boats all across the country and leaving them there is the only way to go.

[ffishman]

I believe you have to register the boat in which your home address is. That way, the tax guys can track you down.

[97roughneck]

Originally Posted by Retired Walleye

Well that's not true either. I own boats that are in 3 different states. Texas, Tennessee, and Michigan and all three are registered in the state that they are in. It doesn't make sense to me to pull boats all across the country and leaving them there is the only way to go.

Are you saying you have an address in these 3 states, as well as an address in your home state in which you reside? If that's the case then you could, my question is, why would you want to? If my home state is SD and I want to leave 3 boats that have been legally titled and registered in SD, in 3 different states, I certainly can. Year 'round, year after year. Why would you have to pull boats all over the country just because they weren't registered in the state you left them? THAT doesn't make sense to me!

[MERCONLY]

Yes, You do not have to Reside in the State that your BOAT is registered in, Register the boat where you Boat, not where you live.....If its Online its True remember

[2sac]

I believe I read somewhere if a boat is being used for more than 30 consecutive days it needs to be registered in the state it's being used in, and not the state the owner resides in.

[CraigM]

Originally Posted by AsianAngler

Hi, Will soon be a new boat owner. Found what I wanted in Oregon (state with no sales tax). I understand that I need to register my boat where I use it. Usually people pay sales tax before registering or prove that they have already paid it. Here is my dilemma... I live in Illinois and until I buy a place in Canada, the boat will be stored in Illinois. However, I do not plan to use the boat in Illinois. I will probably use it in Wisconsin a bit, but primarily in Canada. I don't want to do anything illegal, but if I buy in a state with no sales tax, can I register in a state like Arizona that registers boats owned by non-residents? I do not believe AZ charges sales tax on boats either. Does anyone actually know?

Arizona does not charge sales tax on a used boat , however I own a home in Az and Minnesota , my drivers license state determines my residence in AZ for purposes of the DNR ( not other agencies ccw for example) so if I were to license my used boat in AZ they determined that as a non resident I would have to pay $330 to register the boat in AZ. ( a resident would pay $30 ) AZ says if it is in the state continuously for 90 days you must register it there , because I use it in New Mexico , Utah and AZ it is not in AZ for 90 consecutive days so I register it to my Minnesota address for $30 as they do not ask residency just for a home address. Each State has some funky rules check them out first before you do anything I would suggest going directly to that state for info. Minnesota does not charge sales tax on used boats they do on new , trailers in Minnesota are taxed for the sale price but not the boat . That's Minnesota check out individually the states you are concerned about. Most states do not charge any penalty for a boat that is stored and not used they simply require registration somewhere prior to use. A friend of mine bought a boat new here in AZ he paid the AZ sales tax at the time of purchase he has since moved the boat to Crosslake Minnesota and licensed it there he paid no sales tax to register the boat and trailer in Minnesota because it had be previously registered by the dealer in AZ eg it was determined to be used ??? at the time of registration in Minnesota. I hope I confused you enough to get you to investigate through each of the staes you plan on doing this just what their requiements are .Make sure your insurance company is aware of what ever you do ,