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Alabama Sales tax on new boat when buying out of state

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Alabama Sales tax on new boat when buying out of state

Old 01-31-2019, 04:13 PM
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Default Alabama Sales tax on new boat when buying out of state

In the near future our new boat will be completed. The boat is being built in Florida and I will be registering in Alabama. I see that Alabama has a 2% sales tax. I have had a few people tell me that I only pay tax on the hull. They say I should get a separate bill of sale for the engines and trailer. Does anyone know what is correct. I am not trying to cut any corners but sure don't want to pay more than required.

Any advise?
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Old 01-31-2019, 05:29 PM
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All of it. No separating. The good part is the boat registration covers the trailer so no trailer tag needed.
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Old 01-31-2019, 06:00 PM
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Gary's right. The extremely low sales tax is charged on the rig's total price--hull, engine and trailer. And thankfully there's no ad valorem or personal property taxes charged on boats registered in Alabama. Maybe that's why a gentleman on our inland lake brings his 350 ton, 137' Superyacht home from time to time--where it stays in Ft. Lauderdale most of the time.

We're thankful to have the same sales taxes on automobiles and trucks, but we do have a moderate ad valorem tax when we renew our license plates. The state still doesn't care about titling or licensing boat trailers, thank goodness. Part of their desire to provide less government--rather than more government. Another tax savings is on property taxes for disabled owners--there are no property taxes for the disabled no matter how large or expensive the residence.
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Old 01-31-2019, 06:09 PM
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Originally Posted by Bamaman View Post
Gary's right. The extremely low sales tax is charged on the rig's total price--hull, engine and trailer. And thankfully there's no ad valorem or personal property taxes charged on boats registered in Alabama. Maybe that's why a gentleman on our inland lake brings his 350 ton, 137' Superyacht home from time to time--where it stays in Ft. Lauderdale most of the time.

We're thankful to have the same sales taxes on automobiles and trucks, but we do have a moderate ad valorem tax when we renew our license plates. The state still doesn't care about titling or licensing boat trailers, thank goodness. Part of their desire to provide less government--rather than more government. Another tax savings is on property taxes for disabled owners--there are no property taxes for the disabled no matter how large or expensive the residence.
So who has the 137? JR?
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Old 02-01-2019, 06:47 AM
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Sounds fair to me. Can complain too much about 2%.

Bamaman, Please explain the super superyacht. Where have you seen in inland and have you caught her name? It would be a sight to see a boat like that running up the Tombigbee.
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Old 02-01-2019, 10:38 AM
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Alabama Sales tax depends on where you register the boat. For example, in Mobile County, outside of any City Limits, the tax rate is 3%, .5% Mobile County School, .5% Mobile County, & 2% state. My business is in the county & we collect this rate on trailers everyday on sales to Alabama residents.

My advice is to get a separate bill of Sale for the trailer, so that you do not have to pay sales tax on it. Boat trailers are exempt from registration unless you desire a tag for out of state travel.
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Old 02-02-2019, 12:04 PM
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As mentioned above, the 2% is just the State.. the county and City will get their cut as well.. makes sense on a new purchase, but infuriates me that they also do it again on a used purchase. Ridiculous.
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Old 02-02-2019, 05:05 PM
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I live in Saraland last 2 boats I bought worked out to 5.25 percent total. Last boat was 125,000. Didn’t like writing that $6500 check
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Old 02-04-2019, 06:15 AM
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After making a call to the court house, I will be paying 3.3%. Its not going to be fun writing that check.....
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