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Bought used boat.....Sales tax question

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Old 10-27-2006, 03:27 AM
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Default Re: Bought used boat.....Sales tax question

Originally Posted by Panther
I believe Deleware is anothere state were you don't pay sales tax on boats? Lots of people would register their big boats out of Deleware and keep it in Jersey if I recall...that is until the state police caught up with them for harboring the boat in NJ for an extended period of time... The owners had to leave or register and pay up!
Not unless you show fuel receipts from De.
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Old 10-27-2006, 06:40 AM
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Default Re: Bought used boat.....Sales tax question

Originally Posted by cig1988
Not unless you show fuel receipts from De.
When using Delaware as a hailing port for a USCG documented vessel, it is not necessary to actually register the boat with the state if the boat never enters the state.

You can also register in Montana. Also good for cars, trucks, planes etc.

Illinois recently changed it's law and for a person to person sale of a documented vessel you now pay the piper regardless.

Automobiles etc registered in Delaware must be inspected every two years in the state to maintain registration. New vehicles can initially be registered without inspection but a must after two years.
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Old 10-27-2006, 06:50 AM
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Default Re: Bought used boat.....Sales tax question

PS: To officially register or use either state (Montana, Delaware) as a hailing port, you must live there, form or have a corporation in that state. That means you must also file a tax return for that corporation.

Did you think it was going to be easy?

There is a fine line between tax avoidance and tax evasion. Always consult your attorney and accountant.
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Old 10-27-2006, 11:38 AM
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Default Re: Bought used boat.....Sales tax question

Pay the tax and be done with it. It's not worth the grief if/when you are contacted about the back tax and fees/penalties, not to mention the scrutiny of other areas of your tax history. As a victim of identity theft I can attest to the difficulties of having to prove what you DON'T owe in back taxes on someone else's account.
Here's another small point- if you can't afford to pay the sales tax you may want to rethink the purchase.
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Old 10-27-2006, 12:22 PM
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Default Re: Bought used boat.....Sales tax question

No in Louisiana all you have to pay taxes on is a trailer. If the boat is bought from a person all you do is have them sign the back of the regristration card and send it in to LAWLF. I bought and sold a couple of boats this way and only paid taxes on the trailer. This only applies to boats used for recreation. Commercial boats no matter what you have to pay taxes.
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Old 10-27-2006, 12:59 PM
  #26  
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Default Re: Bought used boat.....Sales tax question

Originally Posted by t500hps
It is...mine is registered in Delaware. But to do it "legally" I had to incorporate there.
A company called "The Yacht Registry" set it all up for me.
t500hps
If VA laws are like NY you can stay in VA 30 days at a time then you have to go out of the state for 24 hrs or you will have to paid usage tax for VA it does not matter were you are reg. If you are using the boat let say in FL for the winter you will have to pay the usage tax only time you do not have to pay the usage tax is if the state you are reg in is higher 8.5% and Fl is 6.25% them you paid nothing but if you are reg. in FL and went to NY for the summer then you would have to paid 2.25 % to the state of new york for the usage tax. only if you stay in one place for more the 30 it does not matter in the water or out of the water. you will have to pay the tax


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