boat loan and sales tax ?

26sonic · 08-27-2005, 08:16 PM

I am considering purchasing a used boat at the end of the season . do all boat loan financers require you to register the boat right away or can i have insurance on it and register and pay sales tax in the spring ?

fund razor · 08-28-2005, 07:12 AM

In Ohio I had to pay sales tax at the bank (when they got the title), then a smaller registration fee at the state registrar.

Dave M · 08-28-2005, 07:51 AM

If you a buying from a dealer or broker you may have to pay the tax at purchase time. If you are going through a private seller, you may be able to stall for a while.

26sonic · 08-28-2005, 10:02 AM

forgot to mention this purchase will be from out of my state .

fund razor · 08-28-2005, 10:08 AM

Ask your lender. My purchase was out of state too.

Because the lender held the title and did the title work, they paid the tax on my behalf (and I wrote them a check).

Later I registered it myself using the memorandum of title.

asg · 08-28-2005, 11:54 AM

Is it a brokerage boat or dealer owned ?

As a dealer you collect sales tax at time of sale. A brokered boat is up to you, as a dealer can't accept tax on someone else's property.

DanB · 08-28-2005, 03:32 PM

If you pay a sales tax before 12/05 its a tax deduction. Wont be the case next year if they dont renew the provision.

26sonic · 08-28-2005, 04:52 PM

actually it is a repoed boat that is bank owned I assume . Is this sales tax deduction for all states ? I live in n.y.

buck183 · 08-28-2005, 11:45 PM

All of these answers are of no use to you unless they live in your state. EVERY state is different for the most part.

If I was answering your question for my state the answer would be "you won't EVER have to worry about it". There is no sales tax on a used boat here regardless of where it came from.

My last boat cost me $48 to tag including trailer. This was also a three year tag. A million dollar boat wouldn't have cost my any more money to tag than the one I bought.

Buck

DanB · 08-29-2005, 07:41 AM

If you have to pay sales tax in your state on used boats, it can be a deduction on your fed return. That provision was put in last year and this year to encourage people to buy big ticket items.
I dont remember all the details, you should talk to a tax advisor.
In FL you pay 6% on the purchace price minus the trade in if you have one. Since there is no state income tax here, it could be a big write off. It worked for me last year when I bought a used boat.