Who gets my tax? New Hampshire or Massachusetts? - SailNet Community
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post #1 of 20 Old 02-16-2009 Thread Starter
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Question Who gets my tax? New Hampshire or Massachusetts?

I want to buy a boat in Massachusetts but I am a resident of New Hampshire. I will be using the boat in New Hampshire almost exclusively. Will I have to pay tax on the boat at the Mass dealership or will I just pay the NH tax at my local agency when I register the boat?
Many apologies if this has been addressed already, but in the forums I mostly found Q & A's about living outside of NH and trying to avoid tax altogether on a purchase. I'll pay the tax, but not twice to two states!
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post #2 of 20 Old 02-16-2009
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You should only have to pay tax where you are going to register the boat.
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post #3 of 20 Old 02-16-2009
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It is not cut and dry. In most cases, if you buy a boat in one state, that state will expect you to pay the sales tax in that state. There is typically an exception for the case where you buy a boat in one state, but remove it from that state within a stipulated period (somewhere between 30 and 90 days depending on the state law).

This is not as bad as it sounds however, because many states have reciprocity, so that if you pay the sales tax in one state when you buy the boat but move it to another, the state that you move it to will not require you to pay the sales tax over again, except in the case where the state where you bought the boat had lower sales tax than the state where you moved it in which case you typically have to pay any difference between the lower sales tax and the one in the state where the boat will be kept.

Since these laws vary from state to state, you need to research this with the individual states involved.

Jeff


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post #4 of 20 Old 02-16-2009
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especially since NH has no sales tax

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post #5 of 20 Old 02-16-2009
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This should answer your questions, you should also visit the site as there is a form you need to complete with-in a certain time frame.

Sales for out-of-state delivery:
Sales where the purchaser accepts title to and possession of an item outside Massachusetts generally are exempt. Similarly, if a vendor is obligated to deliver to an out-of-state purchaser’s address or to an interstate common carrier for such a delivery, the sale is not taxable in Massachusetts. Generally, however, any taxable item brought into the state within six months of purchase for use, storage or consumption in Massachusetts s subject to the use tax.

Check this site A Guide to Sales and Use Tax
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post #6 of 20 Old 02-16-2009
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NH doesn't have a sales or use tax, but you can contact the NH DRA (the tax people) directly to make sure there are no pitfalls:

NH Department of Revenue Administration - Contact Us

if you are not taking the boat into NH waters immediately, check the MA rules on how long your grace period is.
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post #7 of 20 Old 02-16-2009
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Just recognize that one way or the other, the tax man is gonna getcha! We purchased new in Maryland and registered in NJ and paid the NJ tax when we got the boat up there.

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post #8 of 20 Old 02-16-2009
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If you are getting a loan, ask a knowledgable boat lender. Trident funding steered me around a few pitfalls and I avoided a few fees, legally.

NH exempts boat sales tax. You might have to complete the sale in NH. Mass will have some sort of 60 or 90 day rule that says no matter what, if you are here longer than that you must register and then the tax rules kick in. Lucky you to be in NH.
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post #9 of 20 Old 02-16-2009
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If as stated, NH does not have a sales tax, Ma does, you should be able to do as OR residents do when buying Wa st, and that is have a form/card that shows you are a non resident, you do not pay the tax, get the boat home, and pay appropriate NH tax. Or also as mentioned, if both have STax,, you pay or collect back the different once in your home state.

Just look things up tomorrow with you state tax agency to find out the rules. And as seawolf says, and you seem to know, the tax man will getcha! So plan to see him before he comes looking for you!

marty

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I drives me dinghy!
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post #10 of 20 Old 02-16-2009
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Of course you know Massachusetts is going to have some sort of trickery up their sleeves to get some money out of you. If the title is in ma then youre probably going to have pay to get the title in your name to get it to nh
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