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01-14-2008, 09:42 PM
#11
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In Virginia, we have a sales and use tax. You may not qualify to pay the sales tax, but you will be required to pay the "use" tax which is the same rate. This was the states way to close these sales tax loop holes. Hope this helps.
01-15-2008, 11:46 AM
#12
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This came off the VA DGIF web site:
Vessels documented by the U.S. Coast Guard cannot be titled in Virginia. Though there is no requirement that documented vessels be registered, owners may register them if desired. The registration decals may be useful if traveling to another state that requires display of registration decals.
Not sure what TruHull means by use tax. Never heard of that...unless you are talking personal property tax. I will be required to pay that this year.
Last edited by Macklin; 01-15-2008 at 11:50 AM.
01-15-2008, 06:05 PM
#13
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Mack,
Without boring you with getting into tax code, I will eplain this the best I can. VA has a Sales & Use tax law (Laws differ by state), which means that if you buy tangible personal property in the state of VA (ie. boat, car, cd, computer, etc) you are required to pay sales tax on that purchase. The "Use" part of that tax law was designed for all of the purchases that were made out of state in which no sales tax was charged. Simply put, if you went to a state that didn't have sales tax and made a purchase, then brought it back to VA to use, you would be required to pay the use tax. VA DGIF is a state agency and collects the sales tax at the time of your boat purchase. The USCG is not a state agency and therefore would not know what state's tax and at what rate to charge you hence why you didn't pay any.
The question here....is how would the state find out you didn't pay sales tax and that it is "kept or garaged" the majority of the time here in VA? I don't have the answer to that question.
The Real Estate & Personal Property tax that you mentioned above are set and collected by locality, not state. In fact, Hampton was not charging property tax on the boats being kept in their locality to entice boaters to the area at one time, not sure if that has changed.
With the technology developed today and the checks and balances built in by these agency's, if you were to get caught I would be suspect of the locality you live in communicating with state agencies.
Dean may chime in and disagree with me, but this is how I advise my clients.
Without boring you with getting into tax code, I will eplain this the best I can. VA has a Sales & Use tax law (Laws differ by state), which means that if you buy tangible personal property in the state of VA (ie. boat, car, cd, computer, etc) you are required to pay sales tax on that purchase. The "Use" part of that tax law was designed for all of the purchases that were made out of state in which no sales tax was charged. Simply put, if you went to a state that didn't have sales tax and made a purchase, then brought it back to VA to use, you would be required to pay the use tax. VA DGIF is a state agency and collects the sales tax at the time of your boat purchase. The USCG is not a state agency and therefore would not know what state's tax and at what rate to charge you hence why you didn't pay any.
The question here....is how would the state find out you didn't pay sales tax and that it is "kept or garaged" the majority of the time here in VA? I don't have the answer to that question.
The Real Estate & Personal Property tax that you mentioned above are set and collected by locality, not state. In fact, Hampton was not charging property tax on the boats being kept in their locality to entice boaters to the area at one time, not sure if that has changed.
With the technology developed today and the checks and balances built in by these agency's, if you were to get caught I would be suspect of the locality you live in communicating with state agencies.
Dean may chime in and disagree with me, but this is how I advise my clients.
01-15-2008, 10:48 PM
#14
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The Ohio Dept. of Taxation can assess a use tax plus penalty and interest. Agent sends letter to billing address for any boat docked or stored at any Ohio marina. If unable to provide documentation of sales or use tax paid, then use tax is determined by marina's County sales tax rate and based on bill of sale or insurance declaration ...
01-16-2008, 12:37 PM
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The fact of the matter is if you register with cosat guard then the state never even knows that you have it. The state goes through the fisheries registration to issue take bills on new boat purchases. If it was never in the system then they never know that you have it.
FYI - In NC it is a mind melt to get them to stop send a tax bill once you sell the boat. I get one on my jetski from 5 years ago and have to send the damn bill of sale in every year.
FYI - In NC it is a mind melt to get them to stop send a tax bill once you sell the boat. I get one on my jetski from 5 years ago and have to send the damn bill of sale in every year.
01-18-2008, 12:33 PM
#16
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The fact of the matter is if you register with cosat guard then the state never even knows that you have it. The state goes through the fisheries registration to issue take bills on new boat purchases. If it was never in the system then they never know that you have it.
I was told they're sharing information with all the other states and the Feds.
Sales tax has become a huge issue for the states. The internet has moved so many people away from retail and towards mail order that they're looking to plug as many holes as possible.
You can still set up a corporation in a non-tax state and CG register it there.
01-18-2008, 12:45 PM
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[QUOTE=apppedigree;2408593]The fact of the matter is if you register with cosat guard then the state never even knows that you have it.
These agencies comunicate and don't underestimate how much. Most localites pick up the items to charge you personal property tax from depreciation schedules off your tax returns.
Obviously in Macklin's case, if they are charging him personal property tax this year, they know he owns/purchased the boat.
The scary part when you do something like this, is you think you have been slick and pulled one on the state, 3 years later your sales tax has doubled possibly tripled because of the interest and penalties the tacked on. Then thats when the accountant that told them that they could avoid the sales tax this way is a no good SOB.
These agencies comunicate and don't underestimate how much. Most localites pick up the items to charge you personal property tax from depreciation schedules off your tax returns.
Obviously in Macklin's case, if they are charging him personal property tax this year, they know he owns/purchased the boat.
The scary part when you do something like this, is you think you have been slick and pulled one on the state, 3 years later your sales tax has doubled possibly tripled because of the interest and penalties the tacked on. Then thats when the accountant that told them that they could avoid the sales tax this way is a no good SOB.
01-19-2008, 02:31 PM
#18
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[These agencies comunicate and don't underestimate how much. Most localites pick up the items to charge you personal property tax from depreciation schedules off your tax returns.
Obviously in Macklin's case, if they are charging him personal property tax this year, they know he owns/purchased the boat.
The scary part when you do something like this, is you think you have been slick and pulled one on the state, 3 years later your sales tax has doubled possibly tripled because of the interest and penalties the tacked on. Then thats when the accountant that told them that they could avoid the sales tax this way is a no good SOB.
Obviously in Macklin's case, if they are charging him personal property tax this year, they know he owns/purchased the boat.
The scary part when you do something like this, is you think you have been slick and pulled one on the state, 3 years later your sales tax has doubled possibly tripled because of the interest and penalties the tacked on. Then thats when the accountant that told them that they could avoid the sales tax this way is a no good SOB.
As for my boat personal property tax...I have not gotten a bill yet. The locality where I keep my boat, which just reinstitued (without notice
) the boat PP tax to go into effect this year , directed all marinas and boatels to provide them a list of boats stored on their property so the City could bill them. Some of the folks who keep their boats at my boatel removed them on the 1st so they would not be counted. I did not do that. I figure they will find them because I know they do pull USCG documentation records.To add to my misfortune, I moved my boat from VA Beach because the City Manager proposed reinstituting the boat PPT in his 2008 budget bill. The City Council voted it down!
Last edited by Macklin; 01-19-2008 at 02:37 PM.
01-20-2008, 07:48 PM
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01-20-2008, 09:17 PM
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I registered my current boat in NC, where i did not have to pay any sales tax, just the 60$ reg fee and out the door...... If i reg my boat in a sales taxing state do i now need to pay sales tax?
also what about documenting a boat, does anyone know the ins and outs of that?
also what about documenting a boat, does anyone know the ins and outs of that?
Here's the exerpt from the state website:
* If the motor vehicle was purchased six months or more prior to the time it was brought into this state, it is not subject to the six percent Florida sales or use tax or local discretionary sales surtax. Documentary evidence must be shown that the motor vehicle or mobile home was used for six months or more in such jurisdiction.
* If the motor vehicle was purchased and used less than six months in another state, territory of the United States or the District of Columbia, the full amount of the six percent Florida sales or use tax and local discretionary sales surtax is required to be paid before title and license plate can be issued by the department.
* However, a credit is allowed for a like tax paid in another state, territory of the United States or the District of Columbia, against the amount of Florida sales or use tax and local discretionary sales surtax. For credit allowed, ONE of the following would apply:
1. If the credit is equal to or greater than the amount imposed by this state, no additional tax is due.
2. If the credit is less than the amount imposed by this state, only the difference between the two would be due.
* If the motor vehicle was purchased and used less than six months in another state, territory of the United States or the District of Columbia, the full amount of the six percent Florida sales or use tax and local discretionary sales surtax is required to be paid before title and license plate can be issued by the department.
* However, a credit is allowed for a like tax paid in another state, territory of the United States or the District of Columbia, against the amount of Florida sales or use tax and local discretionary sales surtax. For credit allowed, ONE of the following would apply:
1. If the credit is equal to or greater than the amount imposed by this state, no additional tax is due.
2. If the credit is less than the amount imposed by this state, only the difference between the two would be due.
