Previous owner wants property tax credit? - Page 5 - SailNet Community
 19Likes
Reply
 
LinkBack Thread Tools
post #41 of 65 Old 08-15-2013
Senior Member
 
Join Date: Dec 2003
Posts: 1,465
Thanks: 1
Thanked 26 Times in 25 Posts
Rep Power: 12
 
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.
capttb is offline  
Quote Quick Reply Share with Facebook
Sponsored Links
Advertisement
 
post #42 of 65 Old 08-15-2013
Senior Member
 
Join Date: Feb 2007
Location: New Jersey
Posts: 2,199
Thanks: 6
Thanked 63 Times in 62 Posts
Rep Power: 9
 
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.

Tempest
Sabre 34
Morgan, NJ

Last edited by Tempest; 08-15-2013 at 11:42 AM.
Tempest is offline  
Quote Quick Reply Share with Facebook
post #43 of 65 Old 08-15-2013
Senior Member
 
Join Date: Aug 2013
Location: Sweden
Posts: 288
Thanks: 7
Thanked 18 Times in 18 Posts
Rep Power: 2
 
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
Jaramaz is offline  
Quote Quick Reply Share with Facebook
post #44 of 65 Old 08-15-2013 Thread Starter
Member
 
Join Date: Nov 2009
Location: San Francisco, CA
Posts: 34
Thanks: 1
Thanked 0 Times in 0 Posts
Rep Power: 0
 
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.
Nias is offline  
Quote Quick Reply Share with Facebook
post #45 of 65 Old 08-15-2013 Thread Starter
Member
 
Join Date: Nov 2009
Location: San Francisco, CA
Posts: 34
Thanks: 1
Thanked 0 Times in 0 Posts
Rep Power: 0
 
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.
Nias is offline  
Quote Quick Reply Share with Facebook
post #46 of 65 Old 08-15-2013
Senior Member
 
Join Date: Apr 2006
Location: Michigan
Posts: 647
Thanks: 35
Thanked 5 Times in 5 Posts
Rep Power: 10
 
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.
abrahamx is offline  
Quote Quick Reply Share with Facebook
post #47 of 65 Old 08-15-2013
Senior Member
 
Join Date: Feb 2007
Location: New Jersey
Posts: 2,199
Thanks: 6
Thanked 63 Times in 62 Posts
Rep Power: 9
 
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.

Tempest
Sabre 34
Morgan, NJ
Tempest is offline  
Quote Quick Reply Share with Facebook
post #48 of 65 Old 08-15-2013
Senior Member
 
TakeFive's Avatar
 
Join Date: Oct 2009
Location: Swarthmore, PA
Posts: 3,145
Thanks: 7
Thanked 85 Times in 75 Posts
Rep Power: 6
 
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.


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

1998 Catalina 250WK Take Five (at Anchorage Marina, Essington, on the Delaware River)
1994 Mason 44 Firefly on loan from my BFF (West River, Galesville, MD)
1991 15' Trophy (Lake Wallenpaupack)
1985 14' Phantom (Lake Wallenpaupack)
TakeFive is offline  
Quote Quick Reply Share with Facebook
post #49 of 65 Old 08-15-2013
Senior Member
 
overbored's Avatar
 
Join Date: Oct 2010
Location: Dana Point, Ca
Posts: 1,195
Thanks: 1
Thanked 63 Times in 63 Posts
Rep Power: 5
 
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.

"FULL TILT II" 2011 BENETEAU FIRST 30
"FULL TILT" SOVEREL 33
"GOLD RUSH" PRINDLE 16
overbored is offline  
Quote Quick Reply Share with Facebook
post #50 of 65 Old 08-15-2013
Member
 
Join Date: Dec 2012
Location: Louisville, KY
Posts: 61
Thanks: 10
Thanked 2 Times in 2 Posts
Rep Power: 3
 
I just know we're about to have Contract Law 101 up in here.
imasaluki is offline  
Quote Quick Reply Share with Facebook
Reply

Quick Reply
Message:
Options

By choosing to post the reply above you agree to the rules you agreed to when joining Sailnet.
Click Here to view those rules.

Register Now



In order to be able to post messages on the SailNet Community forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.
Please note: After entering 3 characters a list of Usernames already in use will appear and the list will disappear once a valid Username is entered.


User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in









Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Similar Threads
Thread Thread Starter Forum Replies Last Post
I know why the Previous Owner sold the boat! Boasun General Discussion (sailing related) 19 06-19-2012 01:54 AM
$8,000 Tax Credit thesnort Living Aboard 9 05-14-2010 11:07 AM
2GM converted to freshwater by previous owner ... now how do I fix it?! scraph Diesel 1 01-11-2010 03:06 PM
Four Day Charter Credit We Are Not Able To Use! shanbill Chartering 0 11-18-2002 04:26 AM
Confused with Credit ptapaul Boat Review and Purchase Forum 3 07-13-2002 06:37 AM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome