Texas peeps. How much do you pay in boat tax annually?

[2in2out]

Texas peeps. How much do you pay in boat tax annually?

I’m researching costs related to our move next fall. How much are you paying in boat tax and trailer tax? Do you get hit with county taxes as well? This caught us by surprise when we had a houseboat in Sacramento.

Tax on boats and trailers is a foreign concept to me, as we don’t have this moronic BS in Nevada. New boats and trailers, your sales tax is incorporated into your registration if you didn’t pay the sales tax at purchase (rare occurrence), with registration costs based on length of vessel. Boats and trailers purchased from a private party are not subject to sales tax, just registration and titling fees.

[RC_Hinojosa]

Boat registration is through Texas Parks & Wildlife....like $65/yr

Trailer is registered through TxDOT and is something like $72/yr



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[RC_Hinojosa]

No annual boat tax or trailer tax.

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[larry_arizona]

I would say registration fees are tax.


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[RC_Hinojosa]

Is someone gonna not move to a state over less than 2 bills?

Seems kinda silly...we have no state tax so I'd say it's less overall tax liability looking holistically.

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[larry_arizona]

I would absolutely agree that in no way shape or form are boat registration fees a deterrent to move to a state.

But each state is different and it’s a prudent question to understand, Michigan has some goofy sales tax issues to deal with such as charging sales tax on used boats.

We should all be thankful there is no longer the 10% federal tax on boats costing greater than $100k. It was a terrible idea.


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[sandm]

But each state is different and it’s a prudent question to understand, Michigan has some goofy sales tax issues to deal with such as charging sales tax on used boats.


I wouldn't call michigan goofy. a chunk of states charge sales tax on used things that require registration. more common from dealer purchases but several are on private party as well.

[2in2out]

I ask because the wording on TPWD website says a tax must be paid, but does not describe if it is incorporated into the registration fees. California and Sacramento county caught us off-guard when a tax bill showed up months after we sold the houseboat. (We only had it for 6 mo. It was more of an apartment for my wife when she was working in Sac). I just don’t want a surprise tax bill, and I’m pretty keen on getting every deduction that I can.

An out of state boat can operate in Tx waters for 90 consecutive days with a waiver before tax is paid. Since we will most likely be moving on Sept/Oct timeframe, I was gauging if I should do the full registration, or get a waiver until the new year starts.

This is directly from TPWD website. It infers tax must be paid, but not how? I was curious to see if any counties were also taxing boaters.

“Tax

How much is boat / outboard motor tax and when is it due?

TPWD is required by law to collect tax for vessels/boats (115 feet or less in length) and outboard motors purchased in Texas or brought into Texas on or after January 1, 2000.

The tax rate is 6.25% of the sales price and is due:

Within 45 working days from the date of sale or date brought to Texas when purchased on or after September 1, 2019, or
Within 20 working days from the date of sale or date brought to Texas when purchased prior to September 1, 2019.

Applications filed after the date the tax is due are subject to tax penalties and interest. When mailed, applications are considered “filed” the date they are postmarked.

NOTE: TPWD does not have the authority to waive or exempt tax, penalty or interest due. Tax law and policy is under the sole authority of the Texas Comptroller of Public Accounts. Currently there is no extension or waiver for boat / outboard motor tax due to COVID-19. A Taxpayer may submit Form 57-200, Texas Claim for Refund of Boat and Boat Motor Tax (PDF) to the Comptroller of Public Accounts to request a refund of penalty / interest paid.

New Resident Tax — $15.00. New Resident tax is assessed (not sales or use tax) for owners who previously resided in another state who are bringing their previously titled or registered boat and/or outboard motor from that other state into Texas.”

RC,

On your registration statement, does it itemize the tax? I’m assuming it would have to since you aren’t receiving a separate tax statement/invoice.

[Woody929]

If you’ve paid tax on the boat before at purchase, and it is registered to you, all you should owe is the $15 new resident tax + the new registration fee.
https://uploads.tapatalk-cdn.com/20210117/deb372d1f2af87f61d41d50f8488dd83.png


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[zabooda]

In the near future, getting gasoline for boats will be the biggest issue. Going to an oil producing state that will tell the Feds where to stick their green programs is important right there. That's why I moved from Washington state to Missouri not because of the idiots on the west side of the state but the energy program they are enacting.

[2in2out]

Thanks Woody. That clarifies it all. I wasn’t able to find that chart, and the wording was suspicious of a separate tax bill. We had this happen with my wife’s mineral rights that were willed to my wife. Two counties levied back taxes that her grandmother hadn’t paid. I was concerned because Ca DMV itemized the sales tax when we bought our houseboat, but levied personal property tax on it at a later date. Sacramento county also taxed us because that was where the boat was berthed.

[KnoxMojo]

Another question is how long have you owned the boat and did you pay taxes when bought or financed them. Reason is, I know several that have moved from annual tax states like SC and OH to TN and have been hit with a sales tax because almost none had been paid the first year.

[rdlangston13]

Boat registration is through Texas Parks & Wildlife....like $65/yr

Trailer is registered through TxDOT and is something like $72/yr



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Isnt boat registration biannual? Its the trailer that has to be done every yeah. In any case it's not very expensive.

[RC_Hinojosa]

Isnt boat registration biannual? Its the trailer that has to be done every yeah. In any case it's not very expensive.You are correct, I blanked on that. Boat registration is bi-annual.

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[2in2out]

Another question is how long have you owned the boat and did you pay taxes when bought or financed them. Reason is, I know several that have moved from annual tax states like SC and OH to TN and have been hit with a sales tax because almost none had been paid the first year.

Sales tax was paid in ID by the prior owner at time of original sale. ID and NV exempt private party sales from sales tax. I’ll be registering and titling the boat in NV this year, and when we move, I’ll request the 90 day waiver, and register in TX for 2022-23.


Isnt boat registration biannual? Its the trailer that has to be done every yeah. In any case it's not very expensive.

NV is the inverse. Boats are done annually, but you can opt for a 1 or 2 year tag for the trailer from DMV. NDOW won’t do 2 yr boat registrations because people ride on prior owners tags until the end of the year. Plus we have to buy an aquatic invasive species sticker to offset cost of inspections at determined water areas.

[KnoxMojo]

I'd call Texas and ask lots of questions pertaining to this.. I've seen people get hit with a high tax bill going from 1 state to another for this very reason. Tennessee charges tax every time the boat changes hands, its not a 1 and done kinda thing.

[russellsmojo]

Texas boats are every two years. Trailers every year.

Fellow Texans, I had a new one last week. They told me I needed to get an inspection on the trailer before registering. After negotiation I was able to register without one. But I have never heard of needing an inspection.


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[2in2out]

Texas boats are every two years. Trailers every year.

Fellow Texans, I had a new one last week. They told me I needed to get an inspection on the trailer before registering. After negotiation I was able to register without one. But I have never heard of needing an inspection.


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Given the status of a few of the trailers I saw last week during my travels around Austin, it might be warranted. FFS there were some heaps being towed around.

[sandm]

Sales tax was paid in ID by the prior owner at time of original sale. ID and NV exempt private party sales from sales tax.


just an fyi incase someone else is reading this. idaho does levy tax on private party boat sales. you did not as you reside out of state but had you tried to register it in idaho, they would have asked for a bill of sale and taxed accordingly

[KnoxMojo]

just an fyi incase someone else is reading this. idaho does levy tax on private party boat sales. you did not as you reside out of state but had you tried to register it in idaho, they would have asked for a bill of sale and taxed accordingly

Sandm, many have tried and failed around here trying to game the system. Then they get upset when their plan doesn't work out. The tax man is going to get his 1 way or another.

[sandm]

I don't think he was trying to cheat the system if that's the point of your post. bought in idaho and taken to nevada, no tax paid on transaction and idaho should not have tried to collect. nevada private party in or out of state sales = no tax due no matter prior sales. nevada new dealer purchase in or out of state, tax is due.
Idaho is no tax if buying AND transporting out of state. if idaho resident and buying in our out of state regardless of new or used, tax due.

every state is different and advice I learned firsthand many years ago.. call and get the information straight from the state.

and you're 1000000% correct. tax man will get their share one way or another.

[KnoxMojo]

I don't think he was trying to cheat the system if that's the point of your post. bought in idaho and taken to nevada, no tax paid on transaction and idaho should not have tried to collect. nevada private party in or out of state sales = no tax due no matter prior sales. nevada new dealer purchase in or out of state, tax is due.
Idaho is no tax if buying AND transporting out of state. if idaho resident and buying in our out of state regardless of new or used, tax due.

every state is different and advice I learned firsthand many years ago.. call and get the information straight from the state.

and you're 1000000% correct. tax man will get their share one way or another.

That was my point, and I stated a couple times already that the best source of info is to call the state directly. Many here have bought boats in other states with those tax laws then got a big surprise when they tried to register in Tennessee. Never said anyone was trying to cheat, but I'd never tell people to pay more than they have to. Just because you bought in Idaho, registered in NV then going to Texas, they might want that sales tax paid to register. But no clue until you call a tax office.

[sandm]

ya knox. I think we're reading the same book and on the same page.
I learned a LONG time ago to call and get info like tax stuff firsthand.

[Woody929]

Hey Russ, I think they started doing that a few years ago, you just haven’t held on to a boat that long. [emoji6]
The inspection generally requires you pay someone to check your signals and brake lights. Not that big of a deal, and doesn’t cost that much. I also don’t think you have to do if that often.


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[russellsmojo]

Hey Russ, I think they started doing that a few years ago, you just haven’t held on to a boat that long. [emoji6]
The inspection generally requires you pay someone to check your signals and brake lights. Not that big of a deal, and doesn’t cost that much. I also don’t think you have to do if that often.


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She acted like annual. Not too big of a deal really. Those are facts about holding long enough lol.


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[Woody929]

She acted like annual. Not too big of a deal really. Those are facts about holding long enough lol.


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I think I only had to do it twice in the 4 years I had the Mojo


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[Cactus371]

Texas boats are every two years. Trailers every year.

Fellow Texans, I had a new one last week. They told me I needed to get an inspection on the trailer before registering. After negotiation I was able to register without one. But I have never heard of needing an inspection.


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I never have redone my trailer tags after the first year. The plates are under the trailer. The inspection on the trailer is something they started a few years ago. A friend I know had to find a place to get his inspected to get his tags for a trailer.


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[SONIC]

That was my point, and I stated a couple times already that the best source of info is to call the state directly. Many here have bought boats in other states with those tax laws then got a big surprise when they tried to register in Tennessee. Never said anyone was trying to cheat, but I'd never tell people to pay more than they have to. Just because you bought in Idaho, registered in NV then going to Texas, they might want that sales tax paid to register. But no clue until you call a tax office.

TN is in fact the devil with used vehicles I'm with you there.

We pay full sales tax on purchase price, doesn't matter what state it came from or if it's been paid in another state or not.
You can fudge the numbers a bit on purchase price, but get caught by the clerk and they will charger you full NADA value. Get caught by the state and it's purgery, so not really worth it we just have to suck it up and pay it.

Standard practice around here when selling used things is to leave the price on the bill of sale blank so the buyer can make their own decision on how much tax to pay.

[russellsmojo]

I never have redone my trailer tags after the first year. The plates are under the trailer. The inspection on the trailer is something they started a few years ago. A friend I know had to find a place to get his inspected to get his tags for a trailer.


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I did some research last night on the tags. The law changed and now boat/trailer under 7,500 pounds does not need inspections.


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[2in2out]

I did some research last night on the tags. The law changed and now boat/trailer under 7,500 pounds does not need inspections.


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I’m guessing that’s sticker weight and not contact weight. It’s worth an hour of emptying the boat out to avoid inspection though. Just such a PITA process for such little result.

[sandm]

off topic but on...

I FINALLY have an appt tomorrow at 7:45am to get tags on our trailer. bought the boat back on 7/15 and haven't had tags or temps on it. had an appt on oct15 and they said the state cop that did the trailer vin inspection didn't do it right so that was wasted hour. second appt coming up.

interestingly cop that did the inspection back in august told me they stopped pulling people over months prior for expired or no tags. he said the head state cop stated "since the dmv can't figure out how to get people in and out in a timely fashion state troopers would stop enforcing tags". I still see temp tags running around town that expired back in march/april 2020.

[rdlangston13]

I’m guessing that’s sticker weight and not contact weight. It’s worth an hour of emptying the boat out to avoid inspection though. Just such a PITA process for such little result.

I would assume this is based off of the trailer GVWR. My Mojo trailer is exactly 7500# so and I have never been asked to get the trailer inspected for registration purposes. I think you're SA is over this limit though.

[russellsmojo]

I would assume this is based off of the trailer GVWR. My Mojo trailer is exactly 7500# so and I have never been asked to get the trailer inspected for registration purposes. I think you're SA is over this limit though.

That is right David. Book says dry boat and trailer weight of 6,900. No doubt over the 7,500 when loaded. I think in the spring one day I will swing by a shop and get inspected.

She said it would only be a problem if a cop wanted to weigh it. Which would probably only happen in bad accident investigation. But then all the ford guys are in trouble at that point over their hitch. Haha! Just startin shit!


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