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Old 02-09-2008, 09:39 PM
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Default sales tax for boats?

Can anyone tell me what the sales tax ceiling is for boats here in NC. I just put a deposit on a mckee 24, want to know when I can expect tp pay sales tax, and what it would be. I'm actually buying the boat in sc and trailering it here to nc. Another question, how would I go about getting tags for the trailer? Thx....David
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Old 02-10-2008, 05:25 AM
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Default Re: sales tax for boats?

Hey Dave Its been a while for me but If you don't pay sales tx in SC, when you register it in NC you need to notify the city, county,state...ect to claim it on you're taxes if not they are so backed up you will get a tax bill in a few years with penalty and interest attached....trust me I wish I didn't know.
I think the ceiling is like 3,200 or 3,500 I cant remember but don't hold me to it.

Tags, take the certificate of origin to the DMV (tag place) and they will tag it and you will later receive the title via mail.
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Old 02-10-2008, 06:16 AM
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Default Re: sales tax for boats?

Pay the sales tax in SC....it will only be $300.00 max. I am not sure about how much NC charges, but I think it is more.
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Old 02-10-2008, 07:40 AM
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Default RE: sales tax for boats?

I bought my boat in 02 and it was 3% in NC , I don't know if it has increased since then .
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Old 02-10-2008, 08:19 AM
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Default Re: sales tax for boats?

I bought my boat in Fl and had to pay a "use" tax when I brought it to NC. This was 2005... the tax maxed out at either $1,500 or 1,600... can't remember for sure.
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Old 02-10-2008, 09:46 AM
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Default Re: sales tax for boats?

Maximum is $1500 for a new boat in NC
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Old 02-10-2008, 12:35 PM
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Default Re: sales tax for boats?

Taxation of Boats and Aircraft
Sales of new or used boats and aircraft are subject to a 3% State sales or use tax with a maximum tax of $1,500.00 per article. Local sales or use tax is not imposed on the sale of a boat or aircraft. The tax is due on the gross sales price of the boat or aircraft without any allowance for a trade-in. Boat trailers are motor vehicles; therefore, trailers are subject to the 3% highway use tax and are not subject to sales or use tax. The highway use tax is due to be paid upon application for a certificate of title with the North Carolina Division of Motor Vehicles.
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Old 02-10-2008, 12:37 PM
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Default Re: sales tax for boats?

I'm in SC, not sure as to all the details of the situation in NC, but here the one thing you don't want to do is to buy a outboard separate from your boat. We have a $300 cap on sales tax here for a boat or boat and motor bought in combination, which you just pay with your initial registration fee to the DNR. The kicker is that if you buy a outboard motor by itself, the $300 cap doesn't apply. From a repower situation, you don't have much choice, but if buying new it is definitely advantageous to purchase as a package here. Like I say, not sure the exact situation in NC, but something to keep in mind.
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Old 02-10-2008, 01:21 PM
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Default Re: sales tax for boats?

You have to file in NC within 30 days of purchase. If you do not do this there are some substancial fines for not listing, not paying and of course interest. They will catch you although it might take 2-3 years. In the meantime interest keeps growing. An example would be if you owed $600 and did not file ontime and they bill you at the end of 2 years the amount is around $1800. There is a form you can download from their website. The reason I know of this is that I have three friends who recently bought boats out of state and did not know. They were all hit hard, with one even paying that states tax, which happened not to be as much as NC. Thanks Raleigh and dems. All three of these boats were bought in different states.
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Old 02-10-2008, 01:47 PM
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Default Re: sales tax for boats?

Yes, pay the tax in the state you intend to register and use the boat. 3% to a maximum of $1500 cap is correct for NC.

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Old 02-10-2008, 09:04 PM
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Default Re: sales tax for boats?

Quote:
FISHNNCBLUE - 2/10/2008 1:21 PM

You have to file in NC within 30 days of purchase. If you do not do this there are some substancial fines for not listing, not paying and of course interest. They will catch you although it might take 2-3 years. In the meantime interest keeps growing. An example would be if you owed $600 and did not file ontime and they bill you at the end of 2 years the amount is around $1800. There is a form you can download from their website. The reason I know of this is that I have three friends who recently bought boats out of state and did not know. They were all hit hard, with one even paying that states tax, which happened not to be as much as NC. Thanks Raleigh and dems. All three of these boats were bought in different states.
I'm one of the friends he's talking about. Let me add more info. Even if you pay SC their max $300, you still owe NC any amount above that, up to 3% or $1500 max (I think). I bought my boat out of state in May and asked about taxes at the local boat dealer doing my title & regristration. They didn't offer any information other than they didn't collect them. I figured I would get a bill later from the state after they received the title application, bill of sale, etc. I was wrong. After about six months and no bill, I found out it was up to me to find this "secret" use tax form off the NC Dept of Revenue web site. If I remember correctly, you have until the 20th of the next month after your purchase to file and pay this tax. If you don't, here's what I remember the penaltys to be: Late filing penalty is 5% per month with a max of 25% of the tax owed. Next, there is a failure to pay penalty. This is another 10% of the tax due. But wait, there's more. They also want the going interest rate added for every month you haven't paid the tax.
I think if an individual or a business tried to charge all this for being six months late, they would probably be locked up. I guess the state can do anything they want.

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Old 02-10-2008, 09:26 PM
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Default Re: sales tax for boats?

lol, I heard earlier today that this is a new tax? That NC used to be a non boat title state. Say you bought a boat outa state, there were no boat title, only trailer titles. You paid te tax on the trailer which only amounted to a few hundred dollars. Now that NC is a boat title state, they charge you for 3% of the purchase price of BMT or $1500, whichever is cheaper. Anyone have knowledge on that? I was also told that I can actually have pay that tax within 30 days of purchase date or pay penalties? I was also told that as far as a plate for the trailer goes, I can actually go get the boat and haul it up here without worrying about a plate. If I were to get pulled, I could show the bill of sale and that would cover it. any knowledge of this? I think that $1500 sales/use tax really sucks as I'm trying to pay off stuff before that boat payment comes along.
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Old 02-11-2008, 03:44 AM
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Default Re: sales tax for boats?

I bought my boat in NC registered it and paid the NC sales tax, do i need to do anything as far as property taxes, I received a bill for my trailer but not my boat????
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Old 02-11-2008, 07:16 AM
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Default Re: sales tax for boats?

It's been 3% or $1500, whichever is cheaper, for a pretty good while. I don't believe the fact NC converted recently to a boat title state affected anything as far as the sales tax.

Yes, you can trailer the boat in NC as long as you have the bill of sale with you. They allow you a reasonable amount of time to get it back and go get your trailer lisc. tag. Has not been an issue for me as yet, but one thing I've been unclear on is if you have to be able to keep the seller's plate on the trailer and send it back to him. Or do they allow you to trailer it with no tag at all on the trailer, so long as you have a recent (within a week or so, I'd guess) bill of sale with you.

Sand1man, you should get a sheet from the county you live in that asked you to list any equipment you own and keep in your county of residence. You have to list the boat on that and send it in. Now if you keep your boat somewhere else most of the year (as in, down at the coast) you should look at which place has the cheaper tax rate. You can list it in the coastal county instead of your county of residence if it is cheaper. Technically though, you are supposed to list it in the county where it stays the majority of the year. They do check the marina wet slips twice/year to see what boats are there, so if you wet slip it in a marina somewhere, the state will know it.

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Old 02-11-2008, 08:02 AM
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Default Re: sales tax for boats?

I have always been told you list county taxes in your county of residence. Does not matter where the boat stays most of the year. Sure some others that have encountered this will throw in.
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Old 02-11-2008, 12:02 PM
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Default Re: sales tax for boats?

I just got off the phone with NC Dept of Rev as I'm in a similar situation. I bought a used boat (registered/titled in N.C.) from an individual late last year and was worried about the tax impact. The gentleman I spoke to in the sales tax dept stated that individual to individual sales are considered "occasional" sales and are not subject to sales tax. He did note that if the used boat was bought from a dealer then it would be taxable. Not sure if that applies to an out of state dealer but I would err on the side that it does and at least give the Dept of Rev a shout to inquire.
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Old 02-11-2008, 02:15 PM
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Default Re: sales tax for boats?

Thanks for the info, I have had my boat since October and nothing from the county for the boat, they did send me something for the trailer guess I need to call.
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Old 02-11-2008, 03:31 PM
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Default Re: sales tax for boats?

I got a similar note from the county about the my trailer as well. I called them and they asked what $$ I bought the trailer for...told 'em it came with the boat. They said "Thanks. I'll note that on the record." Easiest call I ever had with a governmental body!
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Old 02-11-2008, 09:47 PM
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Default Re: sales tax for boats?

Sandman, don't you get a sheet every year from your county asking you to list any property to be taxed such as utility trailers, farm equipment, boats, etc.?? I get one every year.

Eric, you're right about no sales tax on used boats bought from an individual. No sales tax at all. I mistakenly assumed vettnman was talking about buying from a SC dealer. If from an individual, then no sales tax in NC at all. If it's used from a dealer, or new, it gets hit with the sales tax. I should have asked if from a dealer or individual. FYI, be careful if buying anything out of Florida. If you don't get it out of Florida pretty quick, they'll hit you with a tax. And theirs is pretty hefty.

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Fishnncblue, nope, it is supposed to be where the boat is located the majority of the year. Not where the owner lives.
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Old 02-12-2008, 03:22 AM
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Default Re: sales tax for boats?

Guys, according to my accountant, who's reading th etax law off th internet, it says that I have to either pay a sales tax or in my case a "use" tax. I did buy from an individual in sc. You're saying that since I bought from an individual, no sales tax? What about a "use" tax? I really don't wanna get hit with that tax interest. Thx guys for the help
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