SailNet Community - View Single Post - State Registration of Documented Vessels
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post #36 of Old 06-25-2012
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The problem here is the confusion over the named tax. Sales tax, is applied when the object is sold and to be transfered between two or more parties. Use tax, is ambiguous and can be applied for any number of reasons but mainly covers the ground between sales and property tax. Property tax comes into play in two ways; one as tangible property or asset, the other as real property. Most juresdictions only want to make sure their sales taxes are paid and will verify that the taxes are paid in the sale state if the owner have moved. Sales tax can only be charged once per item per owner (vessels, vehicles and property) so if a state has the opportunity to collect the calculated tax ahead of another they will. Many states work in concert to reciprocally collect taxes due.
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