Buying a boat out of state

[Davpmars]

I'm looking at a 2013 Mojo. I'm in Utah and the boat is in Arkansas.

Would I have to pay sales tax on a used boat? Theoretically, is there a way around it ;)


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[moombahighrider]

I'm looking at a 2013 Mojo. I'm in Utah and the boat is in Arkansas.

Would I have to pay sales tax on a used boat? Theoretically, is there a way around it ;)


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Is it a private sale? If so, then no, unless your laws are different than in Colorado. If it's a dealer sale, my experience is you only pay tax on the trailer sale, as you have to license it. Either way, It would be worth trying to get a bill of sale that spells out what the trailer is being sold for versus the boat, as that will help at triller licensing time.

[KG's Supra24]

That is how Arkansas works, but I'm not sure that matters. It will be based on Utah or where you license it.

I agree on assigning a trailer price.

[snyderaaron]

On the Bill of Sale you could say it cost you 100$. Then sales tax would be cheap.

[gregski]

Is it a private sale? If so, then no, unless your laws are different than in Colorado.
Not quite. Colorado law requires you to pay tax on all out-of-state purchases. Your point is that in CO, the DMV is only authorized to collect tax on the trailer since boats are not vehicles here. Just because no one pays the tax doesn't mean that the law doesn't require it. The last time I was at the DMV, the clerk made a comment that most every boat in CO is rolling on a $100 trailer.

[zabooda]

Washington State does it for you. They don't care if you underpaid, overpaid or got the boat/trailer for free, they charge the taxes based on the book value in their database. Waivers to the book value are based on some legal documents that requires some work and time to get.

It is the receiving state to where the fees and taxes are usually paid. Save and document any fees or taxes paid from the state your transferring from as those costs are normally written off on the other end.

[996scott]

You will have to pay sales tax on what is written as the sales price on the Bill of Sale. You will also have to pay the registration fees. If I'm not mistaken you will have to bring the boat down to the DMV so they can verify the hull # matches the paperwork. I could be wrong on that but a quick call to the DMV can verify that.

[MJHSupra]

I assume most states would collect the tax when you go to license it from the bill of sale or they will have a database for the values.

A lot easier if you pay cash to avoid the tax.


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[russellsmojo]

On the Bill of Sale you could say it cost you 100$. Then sales tax would be cheap.

You could buy snyders mojo for a good price once he goes to jail for tax evasion!! Joking of course. My life experiences tell me that I am going to get poked with tax no matter what tactics I use.


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[zabooda]

You can write off the sales tax for those who itemize their Federal tax return and do not have a state income tax.