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Sales Tax in California

Old 09-01-2018, 09:13 PM
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Default Sales Tax in California

Hello,

I am planning to buy a boat in California (Los Angels county), from a friend at a very low price just because he no longer have the time for it. what is the basis for the sales tax? Is it the actual sales price or the assessed (book) value?

Thanks.
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Old 09-01-2018, 10:22 PM
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Originally Posted by Pogo59 View Post
Hello,

I am planning to buy a boat in California (Los Angels county), from a friend at a very low price just because he no longer have the time for it. what is the basis for the sales tax? Is it the actual sales price or the assessed (book) value?

Thanks.
It's based on the sale price. Make sure you get a bill of sale from your friend showing that you paid 3 beers and a pound of bacon and it's all good. If you are buying from out of state, I believe you only have to follow the rules of your destination state. That is to say CA does not tax it unless it is to remain in-state.
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Old 09-01-2018, 11:34 PM
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Originally Posted by bobeast View Post
It's based on the sale price. Make sure you get a bill of sale from your friend showing that you paid 3 beers and a pound of bacon and it's all good. If you are buying from out of state, I believe you only have to follow the rules of your destination state. That is to say CA does not tax it unless it is to remain in-state.
Yes, the boat is registered and coming from AZ and I plan to bring it to California where I plan to keep it. I just don’t want to end up paying a lot more in taxes than the actual purchase price.

Thank you for the info.
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Old 09-02-2018, 08:32 AM
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Technically, you'll pay a "Use Tax" which is 9.5% in L.A. County (but as much as 10.25% in certain cities). If your boat purchase includes a trailer, it is fair and proper to allocate a portion of the purchase price to it. When completing the sales price portion of the California DMV application form to register the boat, you may exclude the amount allocated to the trailer. It would be wise to prepare a sales document with the seller which memorializes this, and to request that the seller report the sale in AZ in conformity with the above.
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Old 09-02-2018, 07:05 PM
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Default Thank you.

I appreciate all the help.
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Old 09-05-2018, 12:56 PM
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There is also an annual luxury tax too. Based on annual valuation assessment.
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Old 09-05-2018, 03:01 PM
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Originally Posted by saltwaters View Post
There is also an annual luxury tax too. Based on annual valuation assessment.
Translation: "You obviously can afford it. We clearly want it. Give it to us"
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Old 09-06-2018, 07:46 AM
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Originally Posted by saltwaters View Post
there is also an annual personal property tax too. Based on annual valuation assessment.
fify

Last edited by Pez Vela; 09-06-2018 at 08:35 AM.
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Old 09-11-2018, 01:56 PM
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Yep property tax every year on any boat over 10k around me in solano county. Just paid my $407 now still have to pay registration and insurance. California does not make it easy on boat owners.
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