boating in CT just got more expensive!
05-10-2011 | 08:56 AM
#1
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Posts: 4,200
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From: Simsbury ct
boating in CT just got more expensive!
here the skinny on the new LUXURY TAX:
The CPBA is doing what I can to keep you guys informed.
A response to your question from our Office of Fiscal Analysis. If you have anything further let me know.
Adam Skowera
Legislative Aide to Rep. Backer, Cook, Schofield and Steinberg
Legislative Office Building, Room 4100
--------------------------------------------------------------------------------
From: Arnold, Evelyn
Sent: Thursday, May 05, 2011 5:50 PM
To: Skowera, Adam
Cc: Murphy, Michael; Calandro, Alan
Subject: RE: budget?
The luxury tax was revised to be a 7% rate on the entire cost of the luxury goods, not a marginal rate. So in effect, the tax would be on the entire $100,001. This is different from the Governor’s original luxury tax proposal which was a 3% marginal tax rate on luxury goods. The following table illustrates the $100,001 example with the revised luxury tax.
Cost of Boat
100,001.00
6.35% standard sales tax
6,350.06
plus additional 0.65% (luxury)
650.01
Total Tax
7,000.07
The additional 0.65% tax is essentially the additional tax imposed on luxury goods. So in this example, the customer would pay $6,350.06 related to the standard sales tax and an additional $650.01 that is associated with the luxury tax bump. I apologize for not clarifying the difference in my previous email.
I hope that helps. Please let me know if you have further questions.
The CPBA is doing what I can to keep you guys informed.
A response to your question from our Office of Fiscal Analysis. If you have anything further let me know.
Adam Skowera
Legislative Aide to Rep. Backer, Cook, Schofield and Steinberg
Legislative Office Building, Room 4100
--------------------------------------------------------------------------------
From: Arnold, Evelyn
Sent: Thursday, May 05, 2011 5:50 PM
To: Skowera, Adam
Cc: Murphy, Michael; Calandro, Alan
Subject: RE: budget?
The luxury tax was revised to be a 7% rate on the entire cost of the luxury goods, not a marginal rate. So in effect, the tax would be on the entire $100,001. This is different from the Governor’s original luxury tax proposal which was a 3% marginal tax rate on luxury goods. The following table illustrates the $100,001 example with the revised luxury tax.
Cost of Boat
100,001.00
6.35% standard sales tax
6,350.06
plus additional 0.65% (luxury)
650.01
Total Tax
7,000.07
The additional 0.65% tax is essentially the additional tax imposed on luxury goods. So in this example, the customer would pay $6,350.06 related to the standard sales tax and an additional $650.01 that is associated with the luxury tax bump. I apologize for not clarifying the difference in my previous email.
I hope that helps. Please let me know if you have further questions.
05-10-2011 | 10:10 AM
#3
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Posts: 6,679
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From: At the office.
A couple of questions...
I assume this is only for the initial purchase and that there is now yearly property tax, correct?
Secondly, this is for goods over $100k. Are they looking at book value, or what's on the bill of sale/purchase price when you go to register the boat?
I need to know very soon so I can decide if my money will be going to CT or VT!
I assume this is only for the initial purchase and that there is now yearly property tax, correct?
Secondly, this is for goods over $100k. Are they looking at book value, or what's on the bill of sale/purchase price when you go to register the boat?
I need to know very soon so I can decide if my money will be going to CT or VT!
05-10-2011 | 10:58 AM
#5
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Joined: Jun 2010
Posts: 4,806
Likes: 891
A couple of questions...
I assume this is only for the initial purchase and that there is now yearly property tax, correct?
Secondly, this is for goods over $100k. Are they looking at book value, or what's on the bill of sale/purchase price when you go to register the boat?
I need to know very soon so I can decide if my money will be going to CT or VT!
I assume this is only for the initial purchase and that there is now yearly property tax, correct?
Secondly, this is for goods over $100k. Are they looking at book value, or what's on the bill of sale/purchase price when you go to register the boat?
I need to know very soon so I can decide if my money will be going to CT or VT!
05-10-2011 | 10:59 AM
#6
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Joined: Jun 2010
Posts: 4,806
Likes: 891
here the skinny on the new LUXURY TAX:
The CPBA is doing what I can to keep you guys informed.
A response to your question from our Office of Fiscal Analysis. If you have anything further let me know.
Adam Skowera
Legislative Aide to Rep. Backer, Cook, Schofield and Steinberg
Legislative Office Building, Room 4100
--------------------------------------------------------------------------------
From: Arnold, Evelyn
Sent: Thursday, May 05, 2011 5:50 PM
To: Skowera, Adam
Cc: Murphy, Michael; Calandro, Alan
Subject: RE: budget?
The luxury tax was revised to be a 7% rate on the entire cost of the luxury goods, not a marginal rate. So in effect, the tax would be on the entire $100,001. This is different from the Governor’s original luxury tax proposal which was a 3% marginal tax rate on luxury goods. The following table illustrates the $100,001 example with the revised luxury tax.
Cost of Boat
100,001.00
6.35% standard sales tax
6,350.06
plus additional 0.65% (luxury)
650.01
Total Tax
7,000.07
The additional 0.65% tax is essentially the additional tax imposed on luxury goods. So in this example, the customer would pay $6,350.06 related to the standard sales tax and an additional $650.01 that is associated with the luxury tax bump. I apologize for not clarifying the difference in my previous email.
I hope that helps. Please let me know if you have further questions.
The CPBA is doing what I can to keep you guys informed.
A response to your question from our Office of Fiscal Analysis. If you have anything further let me know.
Adam Skowera
Legislative Aide to Rep. Backer, Cook, Schofield and Steinberg
Legislative Office Building, Room 4100
--------------------------------------------------------------------------------
From: Arnold, Evelyn
Sent: Thursday, May 05, 2011 5:50 PM
To: Skowera, Adam
Cc: Murphy, Michael; Calandro, Alan
Subject: RE: budget?
The luxury tax was revised to be a 7% rate on the entire cost of the luxury goods, not a marginal rate. So in effect, the tax would be on the entire $100,001. This is different from the Governor’s original luxury tax proposal which was a 3% marginal tax rate on luxury goods. The following table illustrates the $100,001 example with the revised luxury tax.
Cost of Boat
100,001.00
6.35% standard sales tax
6,350.06
plus additional 0.65% (luxury)
650.01
Total Tax
7,000.07
The additional 0.65% tax is essentially the additional tax imposed on luxury goods. So in this example, the customer would pay $6,350.06 related to the standard sales tax and an additional $650.01 that is associated with the luxury tax bump. I apologize for not clarifying the difference in my previous email.
I hope that helps. Please let me know if you have further questions.
05-10-2011 | 11:02 AM
#7
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From: At the office.
05-10-2011 | 11:07 AM
#8
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Posts: 4,806
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it would depend. if you buy the boat through a dealer you will be forced to pay the states sales tax you purchsed the boat in (i.e. CT, VT, etc. if you buy from a private owner you can always agree to and doctor a CT bill of sale. but you didnt hear that from me. (i.e. boat costs 100k and you put 45k) DMV wont know the difference. hahaha
05-10-2011 | 11:27 AM
#9
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Posts: 6,679
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From: At the office.
it would depend. if you buy the boat through a dealer you will be forced to pay the states sales tax you purchsed the boat in (i.e. CT, VT, etc. if you buy from a private owner you can always agree to and doctor a CT bill of sale. but you didnt hear that from me. (i.e. boat costs 100k and you put 45k) DMV wont know the difference. hahaha
05-10-2011 | 11:35 AM
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Joined: Jun 2010
Posts: 4,806
Likes: 891
That's what I was wondering. Years ago they were going on book value on cars (dont know if they still are) and if didnt matter what you said you actually paid for something. I didn't know if they are doing the same these days for boats, or if they are just going off the BoS. If you are correct that they are just using the BoS for private party, that could potentially ease the burden of this tax for some folks.
to be honest, a kbb or blue book doesnt really exist for boats. the price window for boats is so wide that its imposible to track. i.e. i used one book value for my boat to see what kind of deal i was getting. it varied from 45k to almost 80k. not very reliable info. i just went off the market value of what people we asking for them.
