The Boating Forum - Sales tax question

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seve
02-09-2007, 09:38 PM
I was wondering about if there is any truth to this senerio.

In looking to purchase my first used boat, a local seller mentioned that I could save almost 10% in taxes and registration fees if I bought locally in state. Is there any truth to this?

By the way I live in the corrupt free state of Louisiana. ;)


Crabpot Man
02-09-2007, 10:07 PM
There was just another post in a thread that said there was no sales tax on a used boat in La. I would think you could buy a used boat in just about any state if you planned on it being taken directly to La.

wiggreb
02-10-2007, 12:48 AM
I live in LA and bought a used boat from a guy in FLA. I did not have to pay any sales tax. This is the way it was explained to me by the Dept of Revenue. If you buy a used boat from a private person, you do not have to pay sales tax on it, as long as you can show the Dept of Revenue documentation that the original owner payed sales tax on it. If you buy a used boat from a boat dealer, you have to pay sales tax on it. If i remember right, this is the way it goes. Call the La Dept of Revenue for further explanation. That's what I did.


gman25
02-10-2007, 05:39 AM
Just be aware each state is different.For example, if a boat is sold 10 times in NYS, tax on the sale must be paid 10 times by the new owners at the DMV when its registered weather dealing private or with a dealer. The only help you get with tax is if you trade in a boat thats worth 5K and the new boat is worth 20K, you only pay 15K in tax.

prockvoan
02-10-2007, 09:20 AM
In Louisiana,buying a used boat from a privit owner that is in the state of Louisiana,no new taxes on the boat or motor.You will have to play taxes on the amount of what the trailer sells for.Do have two different bill of sales,one for the boat and motor,the other just for the trailer.One thing to remenber,if the trailer is worth $2,000,do put it for that amount.If you under value it and have an insurance claim,the insurance will only pay out what you had stated you paid for it.Its a catch 22 there.Pay now or later.
The fee to get it in your name is only $8.00 from the WL&F's unless it is time to reregister the boat tag.

seve
02-10-2007, 10:05 AM
prockvoan - 2/10/2007 8:20 AM

In Louisiana,buying a used boat from a privit owner that is in the state of Louisiana,no new taxes on the boat or motor.You will have to play taxes on the amount of what the trailer sells for.Do have two different bill of sales,one for the boat and motor,the other just for the trailer.One thing to remenber,if the trailer is worth $2,000,do put it for that amount.If you under value it and have an insurance claim,the insurance will only pay out what you had stated you paid for it.Its a catch 22 there.Pay now or later.
The fee to get it in your name is only $8.00 from the WL&F's unless it is time to reregister the boat tag.

THis is what I have heard of before when buying locally in state, that you pay tax on the trailer only. But I also heard that if you do buy out of state and then when it becomes time to register your boat in Louisiana, that's when you would pay sales tax on your boat and motor? Is this correct in Louisiana? ;?

Bigger Hammer
02-10-2007, 11:25 AM
I've been through this as well, and it was a consideration for me before I bought our current boat in Florida. I paid a title place to do the transaction since it involved going to Baton Rouge and getting signatures from local tax authorities as well, they ended up making a couple of trips before things were completed. It took a lot to convince the Dept of Revenue that no tax was due. The title transfer folks wanted me to pay the sales tax just so they could be done with it.

I finally sent them back with this Tax Collection Policy document, I paid no sales tax and everyone was happy:

http://www.revenue.louisiana.gov/forms/lawspolicies/LAC61_I_4307.pdf

You will not be subject to state or local sales or use tax on the boat or motors. Just print this document and take it with you the first time.

Bill

prockvoan
02-10-2007, 11:39 AM
seve - 2/10/2007 10:05 AM

prockvoan - 2/10/2007 8:20 AM

In Louisiana,buying a used boat from a privit owner that is in the state of Louisiana,no new taxes on the boat or motor.You will have to play taxes on the amount of what the trailer sells for.Do have two different bill of sales,one for the boat and motor,the other just for the trailer.One thing to remenber,if the trailer is worth $2,000,do put it for that amount.If you under value it and have an insurance claim,the insurance will only pay out what you had stated you paid for it.Its a catch 22 there.Pay now or later.
The fee to get it in your name is only $8.00 from the WL&F's unless it is time to reregister the boat tag.

THis is what I have heard of before when buying locally in state, that you pay tax on the trailer only. But I also heard that if you do buy out of state and then when it becomes time to register your boat in Louisiana, that's when you would pay sales tax on your boat and motor? Is this correct in Louisiana? ;?

Yes,this is true.Had got one out of Fla thru a broker.I had to pay 4% state taxes and what ever parish tax you live in rate.And yes,I did have to go to Baton Rouge with the bill of sale to the Dept of Rev,pay them,then back to the WL&F's for the swap and register the boat in Louisiana.More money.As stated;if you are buying from an owner(out of state),do have the paper work that the pass owner has paid taxes on it before.You might get away without paying again.

Now another way around this is having the boat documented thru the USCG.A one time fee,no taxes.But that is a real pain in the @ss.

speckster
02-10-2007, 12:09 PM
From the La. DWF SITE:

New Application
Proof of ownership - a copy of invoice from dealer or manufacturer's statement of origin. Proof of state and local taxes paid must be evident on the invoice, or application must be accompanied by an original Tax Certification Form (R-1331), signed and stamped by local tax office and Louisiana Department of Revenue and Taxation.

Boats coming into Louisiana from another state must have the out-of-state registration or title, invoice from dealer, or a notarized bill of sale with raised seal. In addition, if the boat is 10 or less years old, a completed original Tax Certification Form R-1331 is required. If out-of-state registration/title is not available, a certified original letter from the state that the boat is leaving acknowledging the status of the boat or documentation of origination of the boat is required.


Transfer
Current registration number must be on all applications for transfer of ownership. In addition to the application, proof of ownership with a NOTARIZED bill of sale with a raised seal signed by the prior owner OR the prior owners Louisiana Boat Registration Certificate with the reassignment of ownership on the reverse side completed and signed by the previous owner.

Boats coming into Louisiana from another state that have never been registered in Louisiana are NEW APPLICATIONS



******As I understand it :In state used purchase you pay tax on trailer only to get plate and only a transfer fee for the DWF registration. Out of state less than 10 years old you pay taxes on boat,motor,trailer(local,state and DMV) for plate and to be able to register with DWF(new application). Hope this helps. BTW it is a pain in the....********

tompass
02-10-2007, 05:11 PM
Sales tax is paid to the state in which you register the boat and you are generally required to register the boat in the state in which you will be primarily using the boat. I live in NJ, purchased a new boat in Florida, and registered the boat in SC. Paid the SC state sales tax only.

quiz
02-11-2007, 08:11 AM
I'm not sure of the exact specifics, but in some states and cities (and VA is one), if you federally document a boat w/ the C.G.(which means you don't locally register it), you don't pay sales tax or personal property taxes. There seems to be alot of confusion on this issue, but I have been told by dealers, accountants, and many owners who do it thats it's correct info..
Quiz

wiggreb
02-11-2007, 02:22 PM
You do not have to pay sales tax on a boat you buy from a private person whether you bought it in LA or out of La, as long as you can show the Dept of Revenue documentation that someone (the original owner) has already payed sales tax on it. You do, as others have stated, have to pay sales tax on the trailer. But not the boat & motor. This is what I did. (I bought my boat from a private person in FLA). If I understood them correctly, if you buy from a person who is in the business of selling boats, you would have to pay sales tax.



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