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post #32 of Old 06-25-2012
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Re: State Registration of Documented Vessels


Your avoiding what I said and the question that Tempest asked. Also you imply that what I said isn't correct but never specify what is wrong.

From the Louisiana state website FAQ on taxes
Frequently Asked Questions : Louisiana Department of Revenue

To what transactions is sales tax applied?

The state general sales and use tax is levied on the following transactions:

The sale of tangible personal property in this state.
The use, consumption, distribution, or storage for use or consumption in this state of any tangible personal property.

We agree on this - If O1 didn't pay taxes it is tax evasion.
As to O2 in this case I don't know what his liability would be for O1s' failure to pay taxes but O2 will be paying taxes on his purchase of the used boat.

Even if O1 payed sales tax, when O2 buys the boat he will have to pay taxes on his purchase.

Your numbers don't make sense. Mississippi has a 7% tax rate. On 250k that would be 17,500 in La with a 4% tax it would be $10,000.

Why Louisiana would care about sales taxes due in another state is a mystery. How much of this 30k was to go to Mississippi and how much did Louisiana want? Was the boat titled or documented?

In post #30 you say "Louisiana says well if it's here more than 90 days you need to register it in Louisiana. To do so you need proof of sales tax being paid, or will have to pay it."
Sounds like they want their tax money.

Your statement in post #28 is wrong.
"Sales tax is only due the first time a boat is sold, not every time. Just like used cars when sold from person to person are not due sales tax (they are if the title was from a used car lot though). "
The statement that a car would only have sales tax if bought from a dealer doesn't make sense and is wrong. There's a reason you always see/hear a line about "title, taxes and registration" in car ads. When you go to a DMV and try to title a car that you bought they are going to collect sales taxes if the state has a sales tax. If you buy it from a dealer who is getting your tags he will collect the taxes and other fees. As for a boat it is the same thing. The Louisiana website says nothing about 'new' or 'used' just sale of tangible property.

Like Sea hunter said sales tax is due each time an item is sold not just when it is new. When I bought my used sailboat I paid sales tax in Maryland. Since I'm the third owner and the boat has always been in Maryland it was the 3rd time Maryland collected sales tax on the boat.

If you are buying a used boat it would be smart to ask the agency that handles boat titles in the state where you plan to keep the boat what sales tax you might owe.

I was under the impression that you sell titanium, are you also a boat broker or lawyer?
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