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I have read a number of threads on this subject and more confused than when I started. I am resident in Texas and am looking at a boat in Louisiana. No brokers involved, it is a private transaction and I am paying cash.
What procedure has to be followed and where should the sales tax be paid? Any advice on minimizing the hassle factor and paperwork would be greatly appreciated.
Thanks, katie
PS Before posting this I realised that have received a lot of good advice on the site. I just went and joined the captains club. I'm assured the the wheel is in the mail.
Make sure all paper-work, title and*registeration*are present and in good order when money changes hands. If the seller says "my bank will mail it to you," suggest you do*the deal at the bank.
I dont know if you'll be liable for LA sales tax. Probably unlees the seller drags the boat over the state line before signing the bill of sale. It's unlikley LA will be aware of the sale so you can probably*skip it.
Texas will likely collect their cut when it's registerred. I used to be a resident of Vermont (sales tax) and bought a car while I was in college in NH (no sales tax). I had to include 5% when I registerred. You may have something like that to look forward to even if you do pay LA tax.
Good luck with your new boat!
__________________ I'm not a boat expert, I just read THT!
I am buying a boat in Florida and live in Alabama, same as you, from a private party. I am not paying Florida sales tax, but will pay sales tax in Alabama when I register the boat.
On another note to save money..........have the seller draw up a bill of sale less than what you pay him. You can still pay the agreed apon price but when you register the boat your taxes will be less. This is of course from a private seller.
Taxes I neglected to pay taxes on a boat I purchased out-of-state in 2001. I just got billed for it. Due to interest, penalties, etc, I'm paying double what I would have paid at time of purchase. Be sure learn from my mistake...
One good thing about living in Georgia...no tax on any transaction between two private parties...and no tax on a used boat purchased out of state.* Of course there is the ad valorem tax that they get every year but $36 for a 3 year registration and you are good to go.
Ditto to what Drifter said.
In NC the sales tax is due at the end of the month in which the transaction occurred. Since NC collects use tax on out-of-state purchases on the state income tax return, I assumed (wrong) that I had until 4/15/03 to pay up. Fortunately I discovered the error, albeit ten months later (had to pay interest, another $75)
However, since I found the error and took corrective action, NCDR waived the penalty.
It was still MUCH cheaper than paying the sales tax in Connecticut (NC had a $1500 cap on sales tax on boats; CT wanted 6% of the whole enchilada)
Texas WILL get their pound of flesh. Be certain that your bill of sale breaks down the costs of the boat, motor and trailer. You will have to pay and register the trailer at DMV..and the boat and motor at TXP&W. If you do not have a breakdown, I'm not sure what will happen, but it will complicate matters.
Be certain to keep copies of all paperwork. I registered my TEXAS licensed boat up here in Wisconsin, and I had to go back to Texas to have them verify, on official documents, that I did pay the sales tax. Otherwise, I had to pay it again here in Wisconsini!!!
RichG
Califonia had a loophole in the tax code where if you took possession of the boat offshore (3 miles) and kept the boat out of the country for 3 out of the first 6 months, there was no sales tax. Most people took the boats to Ensenada Mexico and saved a bundle. Now, they changed the time period to 1 year. You might check for a loophole in your tax code.
in houston i need to take the proof of purchase on the trailer and register it with the city.
for the boat and motor it goes to tx. parks and wildlife. the attached forms need to be filled outl. one for each engine and the hull. they want 6.25% tax on just the hull and motors. not electronics.
Rhode Island got smart. No sales tax or personal property (excise) tax on boats that
are kept in the state. For out of state residents, if the boat is registered and kept in RI
they pay no taxes on the boat. But that has caused another problem. With all the MA residents keeping boats at RI marinas, the cost and availability of RI slip space is at a
premium. But it sure has brought a lot of income to the ocean state.
I live in Rhode Island and keep my boat in Rhode Island. I purchased a boat in Connecticut and was not required to pay sales tax. It is true (as mentioned above) that finding a slip is difficult in most areas of Rhode Island. Besides the tax break, it is a great place to have a boat!
Lying about the sales price on auto or boat transactions may save you a few bucks up front, but it is tax evasion and I would not recommend it. You could get into a lot more trouble than it is worth if you ever become the subject of an audit. Otherwise, just buy the boat, haul it back to the great state of Texas, and pay your 6.25% taxes to the TPWD. I think you have 30 days to pay the taxes after bringing it across the state line. After that you pay a penalty. Definitely break out the value of the hull and motors from everything else. They don't tax you on options. I hope it all goes smoothly for you.
louisiana doesnt charge sales tax on boats sold from individuals, and boats and motors are not titled. the boat is registered though with the state. Check out the registration with a call to LA wildlife & fisheries and confirm that the seller is the registered owner, and the boat isnt hot or something.
Pay for the trailer out of pocket, always. financial institutions will charge you $50 to file registration on it , and may lose the paperwork. Mine did. took 9 mo and a new bill of sale from seller (out of state too) to get me a tag.
louisiana doesnt charge sales tax on boats sold from individuals, and boats and motors are not titled. the boat is registered though with the state. Check out the registration with a call to LA wildlife & fisheries and confirm that the seller is the registered owner, and the boat isnt hot or something.
Louisiana will charge sales tax (the difference) of a boat and trailer bought out of state from any seller. You need to prove that sales tax was paid somewhere, and LA will charge any additional percent.
Know the percentages involved, as the place I went to here in LA referred to a book that had 1991 Tax rates for MI. Could have lost +2% of $2000 had I not been prepared.
If you go out of state, I hope the seller is someone you feel comfortable with, and keep in contact with, just in case you need additional documents. I bought from my brother in MI, so I was able to accquire new receipts that itimized the trailer, via FEDEX, with just a call. "sweet!"
not only is it tax evasion but you have to swear on some affidavits to tx parks and wildlife which makes it a forged document (gov that is) and carries a penalty of 2-10 yrs prison and up to a $10,000 fine (third degree felony) hey it's a crime of moral turpitude.
Things have to be paid for somehow. If you dont like how government spends your money you should tell your representatives.
I'm willing (sometimes reluctantly but still willing) to pay my share. I dont want to pay more because of some one else evading their responsibilities.
Out of state boat purchase advice 
I neglected to pay taxes on a boat I purchased out-of-state in 2001. I just got billed for it. Due to interest, penalties, etc, I'm paying double what I would have paid at time of purchase. 
Be sure learn from my mistake... 
