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kycat2007
01-10-2009, 01:21 AM
Went to get the title switched over for the 04 X2 today. Got hit for a use tax here in Kentucky. $1650 which was unexpected. They changed the law last year this sucked

JohnE
01-10-2009, 09:00 AM
Ouch!

I register my boat in NH to avoid the sales tax here in MA.

trickskier
01-10-2009, 09:03 AM
Is the use tax a percentage of what you paid for the boat or just a flat fee?

trickskier
01-10-2009, 09:05 AM
Ouch!

I register my boat in NH to avoid the sales tax here in MA.

How are you able to do that? Do you have an address in NH?

bigmac
01-10-2009, 10:12 AM
Many or most states have sales tax or use tax and that usually applies to boats and motor vehicles, so yes...buying a new or used car or boat in-state, they usually collect sales tax at the time of purchase. Buy a boat from out of state (or a private party where sales tax wasn't collected at the time of sale) and the buyer gets hit for Use Tax at the time they register or transfer the title. Kentucky sales/use tax is 6%. I'm surprised it's a new law there. Kentucky also requires that that 6% be paid on anything bought out of state where sales tax wasn't charged, including catalog and internet sales.

IIUC, Kentucky also requires you to pay property tax on that boat every year, based on its assessed value. Here in Minnesota, we have to pay 6.5% on purchases, including boats and cars, but at lease we don't have to pay annual property tax on boats...just a registration fee of $50 every three years.

TMCNo1
01-10-2009, 10:29 AM
We bought our '89 in Georgia in '89 and Georgia didn't charge us sales tax, but when I went to get our NC boat registratered here in NC, I had to pay the sales tax. We pay property tax every year based on their current value estimate and pay $27 for 3 years of registration.

SkiDog
01-10-2009, 11:14 AM
Yea, when I bought my boat from Jim last year, I didn't pay sales tax either. I'm waiting for the state of Ga. to send me a bill! Cause I know its coming at some point!

trickskier
01-10-2009, 11:17 AM
Yea, when I bought my boat from Jim last year, I didn't pay sales tax either. I'm waiting for the state of Ga. to send me a bill! Cause I know its coming at some point!

I'll send them a reminder note..................

bigmac
01-10-2009, 11:18 AM
Yea, when I bought my boat from Jim last year, I didn't pay sales tax either. I'm waiting for the state of Ga. to send me a bill! Cause I know its coming at some point!Different states do it differently, but usually you pay any sales tax due at the time you transfer the title or register the boat.

kycat2007
01-10-2009, 11:22 AM
They said Kentucky figured last year they were losing out by not doing it with boats so they implemented it. i could have lied about the price but that is a felony. They base it off avg retail in NADA book anyways. Registration is like $40 for a tear and then property tax will come at the end of the year. Hard part is it was unexpested as my 97 didn't have to spend that.

kycat2007
01-10-2009, 11:22 AM
That was my 1000 post whoop peeee

trickskier
01-10-2009, 11:48 AM
That was my 1000 post whoop peeee

About time!!! CONGRATULATIONS!!!

kycat2007
01-10-2009, 12:33 PM
Trick what do I have to look forward to now? Will my insurance go down? Probably another 1000 post

TMCNo1
01-10-2009, 12:43 PM
That was my 1000 post whoop peeee

Your now vested in the Team Talk Retirement Plan!

Hoosier Bob
01-11-2009, 01:15 AM
Did you even have a boat when I met you? I think you had to borow a ski and vest as well? Now an 04 X2? Nice!

TX.X-30 fan
01-11-2009, 01:42 PM
Many or most states have sales tax or use tax and that usually applies to boats and motor vehicles, so yes...buying a new or used car or boat in-state, they usually collect sales tax at the time of purchase. Buy a boat from out of state (or a private party where sales tax wasn't collected at the time of sale) and the buyer gets hit for Use Tax at the time they register or transfer the title. Kentucky sales/use tax is 6%. I'm surprised it's a new law there. Kentucky also requires that that 6% be paid on anything bought out of state where sales tax wasn't charged, including catalog and internet sales.

IIUC, Kentucky also requires you to pay property tax on that boat every year, based on its assessed value. Here in Minnesota, we have to pay 6.5% on purchases, including boats and cars, but at lease we don't have to pay annual property tax on boats...just a registration fee of $50 every three years.





We have that tax on private sales here snd a bill of sale is all you need, like for 200 bucks.

bigmac
01-11-2009, 03:19 PM
We have that tax on private sales here snd a bill of sale is all you need, like for 200 bucks.Yeh. Around here, though, the selling price has to pass the "smell" test. Too far off book value and the lady at the registration office wrinkles her nose.

AFAIK, most states require sales or use tax be paid on private sales of items. The problem is they have no way of actually enforcing it, except in cases where the item has to be registered and/or titled. THEN they gotcha...

wakeX2wake
01-12-2009, 10:48 AM
yeah we've definately got that here... i think its a ridiculous tax... the "sales" tax had already been paid on the item when it was bought new.. what the individual does w/ it after that is up to him/her... anyways... the guy i bought mine from wrote me up as sales receipt like we'd traded another boat and some cash so all i paid taxes on was the cash difference here

JohnE
01-12-2009, 11:20 AM
MA is funny with sales tax on a boat in the sense that if you trade in, you still pay sales tax on the full purchase price.

bigmac
01-12-2009, 12:46 PM
yeah we've definately got that here... i think its a ridiculous tax... the "sales" tax had already been paid on the item when it was bought new.. what the individual does w/ it after that is up to him/her... anyways... the guy i bought mine from wrote me up as sales receipt like we'd traded another boat and some cash so all i paid taxes on was the cash difference here
The tax isn't on the boat, it's on the sale. Every time there's a sale, tax has to be paid (in most states).

wakeX2wake
01-12-2009, 01:33 PM
The tax isn't on the boat, it's on the sale. Every time there's a sale, tax has to be paid (in most states).

yea i get that but the thing that bugs me is that the government taxes a barter between two individuals... neither one of us had a business license as a boat retailer... just BS to me... seems kind of like over taxation... kind of the the same reason there was that Boston Tea Party back in the day which sparked the American Revolution... not saying we should revolt and anarchy and all that but i'm just saying if people who made laws made better financial decisions regarding how money is spent there would be no reason for them to tax a private barter between two individuals