Used boat sales tax in MN?

[mkh]

Read this link from the mn dept of revenue http://www.revenue.state.mn.us/busin...ets/FS156.pdfq

[CI_Guy]

Originally Posted by GBS

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.....

My wife works at a Deputy Registrars. According to her going from permanent reg. to yearly reg is easier than going the other way, but they both can be done with a form 2000. A picture of the rating plate from the frame & a signed form 2000 swearing that the trailer is rated for under 3000#.
She does them all the time.

I'm from Minnesota and might buy a boat in Michigan from a dealer. It is a used boat. Do I have to pay taxes on the entire sale here in mn (Boat and trailer)?

[jtulius]

Originally Posted by ryan458652

I'm from Minnesota and might buy a boat in Michigan from a dealer. It is a used boat. Do I have to pay taxes on the entire sale here in mn (Boat and trailer)?

Call your Minnesota State Tax agency. They will tell you exactly what needs to be done.

An internet forum is not the place to find tax advice.

[yaggie]

Slightly different but my be of interest. I purchased a new boat in Missouri and the dealer invoiced the motor at list price which lowered the cost on new boat and trailer. he did this because in Minnesota on a new boat purchase out of state you only pay sales tax on boat and trailer, no tax on motor. Glad he knew this as it did save me a lot and I had no ideal that was how it worked.

[DW]

Originally Posted by ryan458652

I'm from Minnesota and might buy a boat in Michigan from a dealer. It is a used boat. Do I have to pay taxes on the entire sale here in mn (Boat and trailer)?

Michigan law, not Minnesota law, will dictate the Michigan dealer sales tax requirements, so you should investigate both state tax requirements.

Most states exempt sales tax collection if delivery to the buyer takes place out of state. Consequently you should investigate delivery out of Michigan to compare the relative tax consequences of in state vs out of state delivery. The Michigan dealer is probably familiar and accustomed to arranging out of state delivery at additional cost.

[h8go4s]

Originally Posted by jtulius

Call your Minnesota State Tax agency. They will tell you exactly what needs to be done.

An internet forum is not the place to find tax advice.

Not to mention legal advice, financial advice, marriage advice, divorce advice, medical advice, worst of all, fishing advice.

[mnchopper]

I had bought a boat motor trailer that was on consignment at one of the dealers in minnesota this was several years ago, The dealer did all the paperwork for the trailer and changed and registered the boat with new lic in my name, the paperwork had sales tax for the trailer only at the time of the sale and I paid cash $5800.00 total five years later I get a letter from the boat dealer telling me they were audited not sure if it was by irs or the state and they said that I owe another $350 in tax and charges so I called and asked what gives they said they screwed up and that I was supposed to be charged more in taxes for the trailer I said WTF it has been 5 years and I dont owe anything they said they had to pay a settlement for the screwups they did for many years and got caught I said I have all of my paperwork and it says PAID IN FULL in big letters and told them of this so the problem is thier problem not mine and dont bother me again, my paperwork has sales tax, and trailer registration and boat registration all included but was told the law at that time was tax on trailer only but that was for a person to person sale and consignment thru a dealer was different and they got caught not knowing the law, it has been 4 - 5 years that this happened and have not heard anything more. Calling the state is the only way to find out what the current laws are as they change so often.

[erino]

In Minnesota Private Party sales of used DNR vehicles (Boats, Snowmobiles, ATVs) are tax exempt. I believe they are also tax exempt if they are brokered or on consignment. Not sure about a used trailer?

On new Sales the DMV will collect Tax on the trailer only and issue you a plate or lifetime sticker.

You will also register the boat at the DMV and give them whatever title the MFG provided. But before the DNR will send you a real title, The DNR will send you a letter that states they dont see that tax was paid on the sale and please provide proof if tax was paid on the boat. If you bought the boat in state and paid tax at the time of sale, just send a copy of the sales transaction. If you paid tax out of state, the DNR will want the difference in tax rates if there is one. If you didnt pay tax on the out of state purchase, they will want a check before they send you the title.

[bobob1916]

Originally Posted by yaggie

Slightly different but my be of interest. I purchased a new boat in Missouri and the dealer invoiced the motor at list price which lowered the cost on new boat and trailer. he did this because in Minnesota on a new boat purchase out of state you only pay sales tax on boat and trailer, no tax on motor. Glad he knew this as it did save me a lot and I had no ideal that was how it worked.

This is 100% wrong. You are required to pay tax on the whole package minus the cost of the trailer. This includes boat, motor, trolling motor, fish finders and anything else in the package.

Dealer sales to MN residents,in-state and out, are subject to 6.875% Minnesota sales or use tax and any applicable local tax.



Be particularly aware if dealer address on top of MSO is out
-of-state.

Use the cost of the entire package (boat, motor, fish finder, etc.) minus the cost of the trailer as a base price for figuring the tax due. Credit is allowed for state and local (municipal or county) tax paid in another state, up to the total state and local tax due in Minnesota. If the tax paid to the other state is less than the tax due in
Minnesota, the difference in tax is due to Minnesota.

http://files.dnr.state.mn.us/rlp/dnr...lesuse_tax.pdf