sell tax question

[Xavierp]

Hello friends

If I buy a used boat (around $250,000) I will have to pay whatever my state’s sells tax is?

[Sand crab]

If you mean sales tax then yes especially if you will keep it in the state where you live. If you keep it somewhere else then maybe not.

[CarlF]

This depends on your state but usually yes.

Two ways to avoid sales tax is

1) Buy in RI or other no sales tax state and keep it out of your home state for a year (depending on your home state)

2) Flag it in another country - although this usually costs $5000 a year for the ongoing legal and accounting costs. And leaving the US every year or two.

These options are not practical for most people.

[Mickeyrouse]

Yes, in just about all states that impose sales tax on boats. However, if you buy it out of state then locate it to your state, several things can come into play. Some states do not levy the tax if a statement is provided to the broker or closing agent attesting the anticipated out of state transfer within a stated time, usually 30 days. Or, if the boat is to be shipped by common carrier the sale is deemed to occur at point of transfer of possession- your home state, for instance. Or if delivered to a bonded customs broker.
Declaring your boat for state registration relies on the honor system if arriving from out of state after you purchase it, but running afoul usually entails hefty penalties plus the unpaid tax. In most states game wardens are looking for state registrations. For the longest time federal documentation precluded state registration, but the potential tax revenue stream was too enticing for states to pass up, and that loophole has been pretty much closed everywhere. Interestingly, I see very few state registration numbers on bows of sailboats in marinas as opposed to the same on outboard boats that are trailered. Yet the requirements are usually the same or very similar for displaying registration numbers.

[Xavierp]

Originally Posted by Mickeyrouse

Yes, in just about all states that impose sales tax on boats. However, if you buy it out of state then locate it to your state, several things can come into play. Someme or very similar for displaying registration numbers.

Thanks for the detailed answer. You lost me after the 3rd sentence but that’s ok! :-)
Maybe I should have been more specific:
We live in Wisconsin.
I have dual nationality US-France.
I am planning on buying from the French Caribbean islands
We would sail Bahamas / Caribbean
We would live aboard 1/2 of the year

ANd than

[Sand crab]

Where would the boat be?

[gonesail]

you will either pay tax in the state you buy the boat in .. or in the state you register it in. but not both.

[capt jgw]

Originally Posted by Xavierp

Thanks for the detailed answer. You lost me after the 3rd sentence but that’s ok! :-)
Maybe I should have been more specific:
We live in Wisconsin.
I have dual nationality US-France.
I am planning on buying from the French Caribbean islands
We would sail Bahamas / Caribbean
We would live aboard 1/2 of the year

ANd than

If the boat never comes to the US then I don't think state tax would apply. Don't know about France though. VAT?

[capt jgw]

Originally Posted by gonesail

you will either pay tax in the state you buy the boat in .. or in the state you register it in. but not both.

If the second state has a higher tax rate, they can charge you the difference. No refund for the other way around. This takes a little planning when buying a boat out of state.

[gonesail]

Originally Posted by capt jgw

If the second state has a higher tax rate, they can charge you the difference.

that did not happen to me. guess i got lucky.

[smj]

Look up your states sales tax regulations online.

[Jammer]

Originally Posted by Xavierp

Hello friends

If I buy a used boat (around $250,000) I will have to pay whatever my state’s sells tax is?

It depends on what state you're in, what state the boat is in, whether you're buying from a dealer, and a variety of other factors that vary from state to state.

[SV OutofHere]

If it's a foreign flagged boat, it will need to be imported to be flagged in the US!!!!

The boat will need to be Titled in a state or USCG documented but not both, then registered where the boat will be keep, if it stays in that location for the required time limit for use/tax to apply. Florida is 90 days for use/tax to apply.

[h20man]

Originally Posted by gonesail

that did not happen to me. guess i got lucky.

florida credits you tax paid elsewhere.. and has max tax cap of $18,000. Depending on a few factors, this works out to the cap being associated with a sales price of about $300,000. Thus, it does not matter whether the sales price is $325,000 or $64,000,000. The amount of Florida sales tax owed on these hypothetical selling prices will not change the amount of Florida sales tax owed on the transaction.



This includes both sales and use tax and discretionary sales surtax. For more information and detailed instructions on this maximum tax, see Tax
Information Publication (TIP)#10A01-07,issued on June 22, 2010, atfloridarevenue.com/taxes/tips.






Credit for Tax Paid
A credit against any Florida sales and use tax or surtax due on a boat is allowed to any purchaser who provides documentation that a like tax has been lawfully imposed and paid to another state, a territory of the United States, or the District of Columbia.
Example:If you purchase a boat in a state that has a sales tax rate of 4%, you must pay an additional 2% when you bring the boat into Florida, plus any applicable discretionary sales surtax. The maximum tax of $18,000 will apply.


https://floridarevenue.com/Forms_library/current/gt800005.pdf used for above facts.

[Xavierp]

Originally Posted by Sand crab

Where would the boat be?

We will be sailing the Caribbean for 6 months and come home to the US
The boat I am looking at in Martinique has a French flag.
I have dual citizenship.
I dont have to bring it back to the US if I am not obliged. I don’t plan on it anyway unless I have to for whatever insurance/tax reason.