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  #41  
Old 08-15-2013
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Re: Previous owner wants property tax credit?

NO
Property taxes on boats in California are NEVER pro rated on sale, the tax is the obligation of the owner on Jan.1 no if's, and's or but's, without exception.
We also get to pay property tax to the county on the water space we rent from the county to dock the boat.
No lawyers or anything else required this is the cheapest stupid human trick I've heard in a long time.
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  #42  
Old 08-15-2013
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Re: Previous owner wants property tax credit?

Quote:
Originally Posted by TakeFive View Post
How do you put a lien on a person? Seize his birth certificate or passport?

Let's call it a tax liability..rather than a lien. That's probably the more correct language.

The taxing authority can: Garnish wages ( a levy) , place a lien on your house, revoke your driver's license. etc.

http://boe.ca.gov/pdf/pub54.pdf


Collection Actions – Some examples of collection actions are:
Levy your property, bank account, salary or wages
Lien your property
Revoke (cancel) your seller's permit. Operating without a seller's permit is illegal
Revoke (cancel) other licenses issued by BOE. (for example: Cigarette and Tobacco Products Retailers, Wholesalers or Distributor's License)
Revoke (cancel) other licenses (for example: California Drivers License, Construction Contractors License)

The Boat is no longer, the Previous owner's property. As far as we can tell.
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Last edited by Tempest; 08-15-2013 at 11:42 AM.
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  #43  
Old 08-15-2013
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Re: Previous owner wants property tax credit?

Oh, you are asking about ethics and moral. These are delicate matters.

Legally, it is clear.

What would happend if there was a differnce betwwen legal and ethic?
Wouldn't work of course.

Conclusion: You have no obligation, neither legal nor ethical, to pay this guy some more money.

Talking about ethical, is it so nice to try to squezze some more money from you?

/J
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  #44  
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Re: Previous owner wants property tax credit?

You guys brought up some good points which led me to go back and review the contract and that puts a whole new twist on things.

There is/was no lien on the boat, see number 9. below.

The vessel is in the process of USCG documentation. Paperwork has already been filed with USCG via my title company.

There was a broker involved.

In the contract item 10. there should have been a check mark and initals by one of the 2 options and there is not. Looks like that slipped by everyone.


Contract items 9 and 10:

9. Title.Seller shall furnish Buyer title to and possession of the Vessel free and clear of any and all claims, liens and encumbrances of any kind. Seller shall promptly discharge, and Broker is authorized and instructed to pay out of the purchase price funds, any and all commissions, liens, mortgages, taxes (including, without limitation, any personal property taxes and penalties Seller has agreed to pay under Paragraph 10 of this Agreement), assessments and bills of every kind incurred against the Vessel before transfer of title, except those which Buyer has agreed in writing to pay. Transfer of title to the Vessel shall be deemed to occur at the place, date and time of delivery of the Vessel to Buyer, and Seller shall bear all risk of loss of or damage to the Vessel until such delivery, unless otherwise agreed in writing. Seller shall become obligated to transfer title to Buyer when (i) Broker has timely received an original or copy of this Agreement duly executed by Buyer and Seller, (ii) Broker has received as agreed all amounts in cleared United States funds, including the full purchase price and any other amounts due, (iii) Broker is in a position to deliver said funds to Seller, less brokerage fees and other applicable fees, taxes and charges, and (iv) any relevant conditions or contingencies set forth in this Agreement have been satisfied or waived.


10. Taxes. Buyer shall timely pay any sales tax, use tax, other transaction tax, fee or duty that may be imposed on this transaction. Personal property tax on the Vessel shall be paid as follows (check one):

---Seller shall pay in full any and all personal property tax and penalties, except tax for the most recently assessed year, which shall be prorated so that Seller shall pay the portion from the January 1st of such year up until, but not including, the date Seller transfers title to the Vessel to Buyer, and Buyer shall pay the balance. The actual amounts payable by Seller and Buyer are to be stated in Buyer’s and Seller’s Final Statements, which are by this reference incorporated into this Agreement.

---Seller shall pay in full any and all personal property tax and penalties, up to and including the most recently assessed year, and such amounts shall not be prorated.
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Re: Previous owner wants property tax credit?

I should add that the broker was the Seller's broker but acted as the buyer's and seller's brokers in this transaction as I did not have a broker working for me.
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Re: Previous owner wants property tax credit?

Yea, ask him if he paid it for the po before him. I would have said right off the bat, that there was no way I could afford it. Which in my case would not be a lie.
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Re: Previous owner wants property tax credit?

That's a big oversight. Everyone missed it, including the broker. So what are your thoughts now?

How much money are we talking about? Spread the pain..3 ways...let the broker kick-in a 3rd....lol....

Good luck with whatever you decide.
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Re: Previous owner wants property tax credit?

Quote:
Originally Posted by Nias View Post
10. Taxes. Buyer shall timely pay any sales tax, use tax, other transaction tax, fee or duty that may be imposed on this transaction. Personal property tax on the Vessel shall be paid as follows (check one):

---Seller shall pay in full any and all personal property tax and penalties, except tax for the most recently assessed year, which shall be prorated so that Seller shall pay the portion from the January 1st of such year up until, but not including, the date Seller transfers title to the Vessel to Buyer, and Buyer shall pay the balance. The actual amounts payable by Seller and Buyer are to be stated in Buyer’s and Seller’s Final Statements, which are by this reference incorporated into this Agreement.

---Seller shall pay in full any and all personal property tax and penalties, up to and including the most recently assessed year, and such amounts shall not be prorated.
Someone really screwed up by not checking/initialing either box. I'd be giving the broker hell over this, since he should have picked that up.

I'm not a lawyer, but it sounds like the first option is only valid if the Final Statements state who should pay how much. If the Final Statements did not include this, then you should argue that the second option is in effect by default.

Based on the fact that there was a broker involved, I would say you should argue forcefully that you don't owe anything more. If anyone should help this guy pay, it should be the broker, since his commission is supposed to pay to make sure he covers this stuff properly.
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Re: Previous owner wants property tax credit?

it should not matter if the box was not checked. there should have been a sales contract and invoice which would show the amount that you owed to take ownership of the boat. it is typical for the broker to put it in the contract but because he did not is not your fault and he cost the seller some money.
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I just know we're about to have Contract Law 101 up in here.
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