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TheOneandOnly
09-13-2007, 10:29 PM
Anyone in minnesota know if you pay sales tax on the purchase price of a boat if it was purchased out of state from a private party? Or is just on the trailer
Thanks

bcampbe7
09-13-2007, 10:38 PM
Normally you pay the tax in your State (not the seller's State) when you register the boat.

TheOneandOnly
09-13-2007, 10:46 PM
Reason I ask is I heard that you dont have to pay tax on the boat only on the trailer just checking since this can make a big difference!

Cloaked
09-13-2007, 10:48 PM
Normally you pay the tax in your State (not the seller's State) when you register the boat.True dat.

And if like in TN, one pays the taxes based on the value stated on the owner / seller Bill of Sale. My last one cost me $2000, as is, for salvage.

TN law does explicitly post the right to use a book value if the price seems unreasonable on the BOS. Again, a damaged or wrecked boat (for rebuild) comes cheap in our state.

TN does not have titles for boats, as do automobiles.

Cloaked
09-13-2007, 10:49 PM
Reason I ask is I heard that you dont have to pay tax on the boat only on the trailer just checking since this can make a big difference!I doubt that, but each state has their own tax laws.

Sodar
09-14-2007, 12:56 AM
I am the out-of-state tax expert for sales in Chicago with shipment to California. The way it worked for me is I had to pay the 6.5% tax in Illinois in order to release the boat. Illinois released the paperwork to me, showing that I had paid their sales tax. Then, I went to the DMV in California and they made me pay the additional 1.75% sales tax for California (CA Tax is 8.25%). This was for a dealership sale.

For a used boat private party sale, it is different. A used boat private party sale, you buy the boat from the owner, transport it to your state of use/residence and pay your local sales tax.

For used boat dealer sale, it is just like a new boat dealer sale.

Good Luck! It took me a LONG time to get this all worked out. Originally, I had paid 6.5% in IL then 8.25% in CA. I had paid 14.75% on the boat!!!!!!!! Luckly, after several calls to DMV, Board of Equalization and IRS, I filed the correct paperwork and was able to get a refund of my money within 3 weeks.

OH, and in CA, the tax rate on trailer is lower than boats... FYI

bigmac
09-14-2007, 05:59 AM
Youll have to pay sales tax on both the boat and the trailer when you register it. It will be 6.5 % plus whatever city or local sales taxes apply to where you live.

TheOneandOnly
09-14-2007, 08:09 AM
http://www.fishingminnesota.com/forum/showflat.php?Cat=&Number=747246&page=&view=&sb=5&o=&fpart=2&vc=1

On this web site theres are alot of ppl that say you dont have to pay it, ill be checking in with the dmv this morning to find out forsure.

bigmac
09-14-2007, 08:23 AM
http://www.fishingminnesota.com/forum/showflat.php?Cat=&Number=747246&page=&view=&sb=5&o=&fpart=2&vc=1

On this web site theres are alot of ppl that say you dont have to pay it, ill be checking in with the dmv this morning to find out forsure.Let us know...it would be unlike our state government to overlook a tax loophole like that, but you never know. My buddy bought a Toyota Tundra out of state about a year ago. When he went to retitle and register it, they only charged him the retitling fee. I suspect that may have been a mistake on her part, but I did have a similar thing happen about 25 years ago. I'm pretty confident that the sales tax is due on any vehicle, but there may be some glitches in the system that will benefit you.

CBergerson
09-14-2007, 08:24 AM
I have first-hand knowledge of this situation. Last fall, I bought my boat from Andy G in Wisconsin to bring into MN. There is NO sales tax in MN on a used boat bought from a private party, whether from MN or any other state. I had to pay sales tax ONLY on the trailer, which is only a small percentage of the total value. And, of course, a fee to transfer the title.

If someone tells you differently, they don't know what they are talking about.

I just looked at the paperwork. It was $72 to title the boat. $52 for a boat >19 and <= 26 feet. $5 exotic aquatic surcharge. $15 title fee

The trailer was $131 total. 55 reg fee, $2.50 plate fee, 8.50 filing fee, $65 sales tax on 6.5% of the $1000 that I said the trailer was worth.

Prostar Rich
09-14-2007, 08:30 AM
For a used boat private party sale, it is different. A used boat private party sale, you buy the boat from the owner, transport it to your state of use/residence and pay your local sales tax.
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In IL a used boat party sale is exempt from sales tax. I have a lake house in WI were I use my boat. A couple of years ago I purchased 2 PWC's and trailer from a private party. I inquired about registering the PWC's in WI and WI wanted to charge me WI sales tax so thus I registered them in IL and avoided paying sales tax. On an interesting note when I purchased my MC new from the dealer in WI I ended up registering the boat in WI because the WI sales tax was less than the IL sales tax.
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For used boat dealer sale, it is just like a new boat dealer sale.
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This is true.

Prostar Rich

76S&S
09-14-2007, 08:47 AM
I live in Alabama and just bought a boat in Georgia. No sales tax in Georgia but paid sales tax in Alabama when I registered the boat, 3% for us.

Roonie's
09-14-2007, 08:57 AM
I almost bought a used 06 X2 from Midwest Mastercraft (located in MN) a couple of months ago and they told me no sales tax on boat at all just trailer. It made the deal pretty good! I decided to buy new however from them.

I should state I live in MN as well so not out of state for either transaction.

TheOneandOnly
09-14-2007, 09:25 AM
AWESOME: Ive herd the same from multiple people but some always revert to saying everthing is taxed, I will still be checking but happy to hear the preliminary first hand result of someone in mn.


I have first-hand knowledge of this situation. Last fall, I bought my boat from Andy G in Wisconsin to bring into MN. There is NO sales tax in MN on a used boat bought from a private party, whether from MN or any other state. I had to pay sales tax ONLY on the trailer, which is only a small percentage of the total value. And, of course, a fee to transfer the title.

If someone tells you differently, they don't know what they are talking about.

I just looked at the paperwork. It was $72 to title the boat. $52 for a boat >19 and <= 26 feet. $5 exotic aquatic surcharge. $15 title fee

The trailer was $131 total. 55 reg fee, $2.50 plate fee, 8.50 filing fee, $65 sales tax on 6.5% of the $1000 that I said the trailer was worth.

bigmac
09-14-2007, 09:46 AM
AWESOME: Ive herd the same from multiple people but some always revert to saying everthing is taxed, I will still be checking but happy to hear the preliminary first hand result of someone in mn.I just talked to a buddy that works at the local state licensing office. She tells me that sales tax is NOT due on boats bought from a private party...IS due on the trailer when you register and re-title it. She tells me it would be helpful if the seller listed the boat and trailer selling prices separately on the bill of sale. Sorry for the misinformation - that's a new one on me.

Roonie's
09-14-2007, 10:13 AM
I should also add the used 06 X2 I almost bought at Midwest Mastercraft was there on consignment from a private party so no sales tax. So I don't know if the same would apply if Midwest Mastercraft were the parties selling it themselves and sales tax would apply?

TheOneandOnly
09-14-2007, 10:28 AM
I just called the DMV also NO sales tax on private party used boats (no matter what state they came from) in Minnesota. You WILL pay sales tax 6.5% on the trailer value which she says youll have to guess the value when you go to transfer it. Ok the value is 1 dollar lol jk :)

Thanks for all those that replied-this makes the used market more appealing cost wise.

east tx skier
09-14-2007, 10:36 AM
I just called the DMV also NO sales tax on private party used boats (no matter what state they came from) in Minnesota. You WILL pay sales tax 6.5% on the trailer value which she says youll have to guess the value when you go to transfer it. Ok the value is 1 dollar lol jk :)

Thanks for all those that replied-this makes the used market more appealing cost wise.

Careful going too low on that trailer value. Some states will take closer looks when you do this. Just sayin'

TheOneandOnly
09-14-2007, 11:02 AM
Oh i was just kidding ill say its $600.00

beatle78
09-14-2007, 11:48 AM
yah, each state is different. Here in RI there is no sales tax on boats, only on trailers.... but I just borrow my brothers trailer plate when I need to tow the boats for storage [twice a year]