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Old 02-19-2005, 10:56 AM
  #21
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Default Re: sales tax

don't need to display numbers, just your states reg sticker. The gendarmes make an assumption when they see a $100,200,300K powerboat displaying sticker only, that it's a documented vessel. Especially when a homeport is displayed on the transom. They would, under these circumstances, have a high confidence that your vessels papers are in order.
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Old 02-19-2005, 11:03 AM
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Default Re: sales tax

First, call Sara at Gloria Rector vessel documentation (ask for her!). Second, I have documented at least 200 boats for people and only 20-30% get hit with taxes.

It really depends on the size of the boat.
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Old 02-19-2005, 11:10 AM
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Default Re: sales tax

the state literally walks the marinas here more than once a season to try to nail you for tax. I had state stickers and numbers on my last boat and the state still sent me an audit letter asking for proof of sales tax paid.

It has alot to do with how aggresive your state is, and also what your water authorities habits are in the case where you have nothing displayed for reg. Only you can have a feel for these things in your state, and on your waters.
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Old 02-19-2005, 11:23 AM
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Default Re: sales tax

Quote:
Originally Posted by Rippem
don't need to display numbers, just your states reg sticker. The gendarmes make an assumption when they see a $100,200,300K powerboat displaying sticker only, that it's a documented vessel. Especially when a homeport is displayed on the transom. They would, under these circumstances, have a high confidence that your vessels papers are in order.
Absolutely.
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Old 02-19-2005, 11:24 AM
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Default Re: sales tax

Quote:
Originally Posted by buyafountain.com
First, call Sara at Gloria Rector vessel documentation (ask for her!). Second, I have documented at least 200 boats for people and only 20-30% get hit with taxes.

It really depends on the size of the boat.
It depends on the state.
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Old 02-19-2005, 01:20 PM
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Default Re: sales tax

Quote:
Originally Posted by Rippem
Quite frankly, in my neck of the woods your gonna get stopped eventually if you don't have a reg. sticker on your hull.

You have to pay (tax) to get one.
Nothing stopping you (and/or your dealer) from being creative though? .........................

.............
With the Delaware corp that I've used I am following DL laws COMPLETELY. I have paid there "tax" for the sticker ($35.00/ yr) and have a set of DL numbers and sticker on the bow. Although I am in VA my boat has DL numbers on it. Since I do not store the boat anywhere other than my own property, no one is around to "check" if the VA taxes are paid.
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Old 02-19-2005, 01:26 PM
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Default Re: sales tax

Your charged sales tax based upon the purchase price, when I bought my formula, I wrote a bill of sale saying the boat was in "as is" condition and only payed the minimun taxes due. Generally if you and the seller are cool, he wont have a problem understating the value of the boat to save tax dollars, just make sure you have notation to back it up...Rob
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Old 02-19-2005, 03:20 PM
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Default Re: sales tax

Paying sales tax on a boat is really not optional when using the boat for personal purposes. There are however loopholes in the system. The loopholes vary greatly by State. The key is to fully investigate the registration requirements for boats that are documented, owned by S-Corps, C-Corps etc. The Corp issue is important as companies that purchase asstes typically do not pay sales tax on those purchases.

Some States do not require State registration for Federally documented boats. If this is the case, you can purchase a boat out of State, have it Federally Documented and bring it into the State. Since Federally Documented boats do not require State registration, the State does not know the boat is there and thus no sales tax. Again fully understand the State laws as some neighboring States have reciprocity laws that can make the above incorrect.

If, however you are in a State that requires registration for Federally Documented boats, you will at some point need to pay sales tax.

The above applies to boats purchased out of State. If you purchase a boat in State from an individual, it gets a little more shaky. If you buy a boat in State from a dealer, you will pay sales tax.


There are also combinations of buying a boat in the State that you live in, but will use the boat in another State that the loophole can also work.

Bottom line is to fully understand the laws of the States that will be involved. And do not take some crazy OSO posters word for it. Check it all out for yourself. Caveat Emptor.....Buyer Beware.

Last edited by h2owarrior; 02-19-2005 at 03:27 PM.
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Old 02-19-2005, 03:26 PM
  #29
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Default Re: sales tax

If you live in a sales tax state and do not pay,odds are they will catch up to you.You then will pay interest,penalties and fines above the original sales tax.
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Old 02-19-2005, 03:37 PM
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Default Re: sales tax

I have a friend that has registered 3 boats in Del. Never paid taxes
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