SailNet Community - View Single Post - Houston, Texas boat tax?
View Single Post
  #2  
Old 12-14-2010
Minnewaska Minnewaska is offline
Senior Member
 
Join Date: Feb 2010
Location: Narragansett Bay
Posts: 8,960
Thanks: 10
Thanked 135 Times in 121 Posts
Rep Power: 6
Minnewaska will become famous soon enough Minnewaska will become famous soon enough
You really should google the Texas revenue department or ask a pro in Texas. Most states have a provision that you are not required to pay their sales taxes if you meet certain criteria, such as living elsewhere and removing the boat within a defined period. Those criteria are different by state.

However, the state where you are shipping it to may very possibly have a use tax, which is just sales tax imposed on something you buy elsewhere, ship in, and use in their state. The rate is typically the same as the sales tax rate, which is not a coincidence. Some states have reciprocity agreements, where they credit each others sales taxes or only require you to pay the difference, if theirs is higher and you paid another state already.

Big caution. States are broke and looking for revenue. This is an easy one for them to hunt you down if you do it wrong.
Reply With Quote Share with Facebook