I trying to figure out if their is an optimal place and time to purchase a boat depending on the state.
I know that some states charge sales tax some property tax.
You can keep a boat in many states for 90 days per year before you have to pay the state.
Any tax you have paid to another state may be counted so you don't have to pay twice.
What I can't figure out is how to turn all of this information into strategy.
I live in CT for example. We pay 6.35% sales tax on boats plus a licence fee.
If I want to own a boat here in CT for a year or so then decide I want to live in North Carolina for a few months then move to Florida for a few months
Does it matter where I buy the boat?
Is their any strategy that makes sense to engineer if I have the flexibility to execute it.
I'm not trying to get out of paying tax due but what I would like to know is how the rules work so I don't do something stupid. I want to be legal I couldn't stand the uncertainty of trying to evade the tax man.
It would be annoying for example if I found a boat in Fl, worked on it for two months in fl then moved it to CT for more work and paid the CT tax and then found out if I kept it in FL for one extra month and paid the FL tax it would have cost me 10k less. Or maybe that scenario would make more sense comming from Rhode Island.
I think this has to do with what you call your home state. I've heard that FL is a good place to make your home state as they don't have the high CT income state tax. I may have the flexibility to adjust my life style if it makes sense to do so.
This article answers some of my questions.