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Sales tax on a Documented boat

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Sales tax on a Documented boat

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Old 10-23-2006 | 04:57 PM
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From: Cold Spring, Ky./Cape Coral,Fl.
Default Sales tax on a Documented boat

Seems the State of Kentucky went into the Coast Guard data base on Documented boats and check on all the documented boats in the State. Everyone is getting a letter asking if they paid sales tax on their boat.
My question is how long is the statute of limitations on how far they can go back to collect the tax. I purchased my boat back in 98. Ohio is doing the same but they are only going back to 2000. Anybody got a good answer.

Last edited by Wildman1; 10-23-2006 at 06:21 PM.
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Old 10-23-2006 | 05:13 PM
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Default Re: Sales tax on a Documented boat

Well if they are asking they don't know so I would just say "yes, I did, I paid my sales tax as a good citizen should, I could not live with myself knowing I did not give the sales tax on an item you already collected on when new and (depending on the year of mfg) that you collected from the other owners of this vessel, over and over again. Thanks for asking though, have a great day" the SLT is 7 years so you are past that but I am not sure it applies to a sales tax situation but I don't know. I had a leased truck once, I paid it off early but never transferred ownership from the lease co, when I sold it later I found I did not own it and had to jump thru some hoops to get it in my name so I could sell it. All went well and easy but at the Sec of State they asked if I had paid the tax, honestly could not remember because on a lease you pay the tax monthly, I had the lease for 2 years but did not pay all the tax. I told her yes, I did pay and she said that's OK, the State will check and if it was not paid I will be contacted. Well I never did pay and was never contacted, this was 5 years ago now. So I would just say yes and wait and see, or, if you want, you could dummy up a Bill of Sale from a dealer and show you did pay. Just don't say I told you how to do this.
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Old 10-23-2006 | 05:17 PM
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Default Re: Sales tax on a Documented boat

In Ohio, the only way to pay the tax is either via titling the vehicle or adding it to your state income tax return- both leave a trail. If you owed the tax but avoided it, you technically committed a crime. Lying about it might be even worse. Remember martha Stewart? She didn't break any laws but lied to investigators- went to Federal prison.
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Old 10-23-2006 | 05:30 PM
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Default Re: Sales tax on a Documented boat

Unless the letter came via certifed letter I wouldn't respnd to it or you will end up on their follow up list.

My first boat was Documented but not registered in the state. My second boat I Documented and they got me for the taxes after I registered it in the State. (I got pulled over in Ohio for no state registration sticker-Only a warning ticket.

Last edited by dukenrock; 10-23-2006 at 05:34 PM.
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Old 10-23-2006 | 05:31 PM
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Default Re: Sales tax on a Documented boat

Register the boat in FL if cheaper. In KY you will pay personal property tax every year. If you have a FL address, even if it a vacant lot you should be OK.
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Old 10-23-2006 | 05:32 PM
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Default Re: Sales tax on a Documented boat

it's like I said in the other thread "benefits of...."

there is no free lunch!!!
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Old 10-23-2006 | 05:52 PM
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Default Re: Sales tax on a Documented boat

pay the tax or they will find u and place a lien on u!!!!!!!!!


dont ask how i know...... gotta love ohio
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Old 10-23-2006 | 06:17 PM
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Default Re: Sales tax on a Documented boat

Remember this is all based on the state of principal use. I received a letter from Florida saying I owed TAX on a Sea Ray we kept and sold in Michigan, but because I did a change of address with the Coast Guard FL thought they had some $$$ coming.



I contacted the state revenue office and told them how deceptive the language of the letter was and they blew me off until I told them what I did for a living and then they seemed to understand the problem a bit better, but I am sure they continue to send the same letters. The letter read like publishers clearing house sweepstakes it didn’t say you may be responsible for tax it said you are responsible.



State of principal use......

Last edited by bcschoe; 10-23-2006 at 06:28 PM.
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Old 10-23-2006 | 06:24 PM
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Default Re: Sales tax on a Documented boat

Originally Posted by bcschoe
Remember this is all based on the state of principal use. I received a letter from Florida saying I owed TAX on a Sea Ray we kept and sold in Michigan, but because I did a change of address with the Coast Guard FL thought they had some $$$ coming.



I contacted the state revenue office and told them how deceptive the language of the letter was and they blew me off until I told them what I did for a living and then they seemed to understand the problem a bit better, but I am sure they continue to send the dame letters. The letter read like publishers clearing house sweepstakes it didn’t say you may be responsible for tax it said you are responsible.



State of principal use......
i agree with the state of principal use comment, especially if you trailer your boat. check with your state tax law to see if it even has to be registered, meaning if you do not leave it mooring or in a permanent slip, you do not legally have to be registered in a state if you are legally documented by the coast guard. this is stated in the coast guard rules and regs. if you want to avoid the hassle of not having registration numbers for that state, you will have to buck up.
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Old 10-23-2006 | 06:36 PM
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Default Re: Sales tax on a Documented boat

I got nailed by a new NV tax law on a documented boat that I had moved over from CA. They wanted $10,600! Seems they don't want to recognize documentation anymore. It was a real ***** getting out of that one, but I had lots of paperwork from CA going back over the required 6 month to get out of it. New fee - $100.00
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