Engine Co 454

I am from Illinois and considering the purchase of a boat from a private party in Michigan. The boat has to be titled/registered in Illinois, I am sure the state wants to charge me some tax.

I have never purchased a used boat from an out of state private party. Since I will be getting a loan, the loan company will want the title, so when I fill out the registration form do I give the state of illinois the old title and include my lender as the lienholder so they can send them the title?

The seller holds the title for boat and trailer.

In regard to taxes, other than a written bill of sale how do they determine the tax amount? From a private sale, I could buy a 30k boat and have a 15k bill of sale? Do they charge a flat rate for a boat that is greater than 10 years old?

Thanks in advance for the responses.

Revd Up

Register the boat in Wisconsin. The trailer in Illinois.( Boat can be registered in a state other than you live.) I too bought my boat out of state. When you fill out the form for the sales tax they take your word for whatever you paid for it. That is if it was from a private party. Not sure about a dealership . Wisconsin's sales tax is 5%. Illinois is whatever your county's sales tax is. Mine was 7-1/4% . Much cheaper sales tax in Wisconsin. Not only that but the cheese heads treat you alot nicer , since they don't know your a flatlander.

Engine Co 454

I do not have a Wisconsin address, as long as Illinois takes my word (or a second bill of sale) thats ok. I was going to get a 15k bill of sale to submit to the state for tax purposes.

Do I have to pay county tax as well as state tax?

Revd Up

I don't have a Wisconsin address either. That's Ok. The trailer has to be registered in the state you live. Call the Wisconsin Department of Revenue and they will fill you in on what you need to do. I went on line and printed the forms, filled them out and sent them a check with the tax. Saved alot over Illinois tax

sommerfliesby

If they question you about the amount you paid (and they would question the seller as well, I would think)...just get your stories straight and say you bought it with a blown engine. I did this on my first boat...a private party in MI.

hp500efi

Wisconsin is big on this. Whatever you put down for a sales price, they will contact the seller asking what it was sold for..not to mention that I am sure you are talking about a bigger sum of money given to seller (more than likely not cash) so there is paper evidence of the amount as well.

Elite Marine

IL uses a Kelly Bluebook type value for determining the approximate value of the boat regardless of what you tell them. This started in 2004 I was told. I am in the process now!!

Engine Co 454

Well average retail is 15,100-17,300, stripped down with no options selected. So that ain't too bad when it comes to taxes. Yes there will be a paper trail for the loan amount which is more than the av.retail

MILD THUNDER

I thought if you document it with the coast guard you dont have to pay tax in IL?

Brad Zastrow

CG documentation is not a free ride for taxes. Illinois requires you pay sales tax period. I registered mine both CG and with the state. Too many times you will get pulled over by local cops for lack of state reg. So I do both.

Be careful what you post here. Some of the posts are discussing tax fraud.