pb

Do I pay sales tax on a used boat I purchased out of state when I register it in Illinois.

What is USCG documentaion and do I need it?

The boat is a 25' Sunsation Aggressor.

Thanks
Paul

Boating Fool

Pb

I believe if you boat the boat from an individual regardless of what state it was in, you will not have to pay sales tax on it. Now if you bought it from a dealer out of state, you will have to pay taxes. Luckily with IL it is just a one time up front fee and stickers are good for 3 yrs. In KY, they personal property tax on the boat to get their sticker every year.

As far as documentation goes, I don't know that much about it other than there are minimum size limits.

That is the way it worked on jet skis when I bought some a year ago. I believe it applies to boats also. When I bought my ATV I made sure to buy it out of state to avoid paying sales tax since they do not have to be registered.

Matt

29Fever

I see where you are trying to go with this. You're hoping to document the vessel and get out of paying sales tax. I have the same issues, only I got mine in Illinois.

Technically the answer to the question is no. It doesn't work that way, nor is it that easy. It will depend on many things.

The selling state doesn't care about state sales tax.

1. your boat needs to be 5 net tons. A 25' Sunsation may not be large enough to document.

2. Has you boat been titled in the past? Documented?
If it has never been titled you will have an easier time.

3. Did you finance the boat or pay cash? Your lender will file the lein with the state. The state will make sure they get their cut.

pb

Ok,
I did some more digging and called the IL Dept of Revenue.

No sales tax on a boat bought out of state from a private owner. Sales tax only applies to boats bought from dealer, bank, or manufacturer.

Only cost is registration.

Thanks for the input.

Paul

29Fever

Paul,

That doesn't make sense to me, but I'm glad it works out for you.

selcousa

yes!!! you have to pay sales tax on a used boat even you purchased out of state when I register it in Illinois.

ttuton

This thread is 18 years old since the last post. This might be a new record for bringing up an old thread!

Dave M

So why did you reply to it?

ttuton

I found it funny that someone randomly replied to an 18 year old thread.

Dave M

No worries, I'm just messing with you. I do find it funny that on all internet forums people jump on when someone replies to an old thread. My take is as long as the information is still accurate and relevant, it doesn't matter how old the thread is. Probably just came up on an internet search. The internet doesn't forget anything.