How does state Sale tax work? - Page 2 - SailNet Community
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post #11 of 20 Old 07-19-2011
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the state you owe the tax to is the state the boat lives in. I bought the boat in Tennessee and immediately trucked it to Maryland. I never paid TN anything. Since it lives in MD I had to pay the Maryland tax even though I live in NY. If I move to NY I will have to pay the difference between MD and NY tax. Unless and until I do move the boat to NY I dont owe NY anything.

One VERY important thing - SAVE THE RECEIPTS AND ALL OTHER PAPERWORK for any tax you pay to a state. It is what you will need to reduce the tax due to the next state you take the boat to (if any). Dont expect them to accept anything but the original official paperwork because they have a financial incentive to insist on the real thing.
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post #12 of 20 Old 07-19-2011
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dawg, you're missing the finer points. Sales tax is only due to the venue where a sale is actually made, when applicable. USE TAX is how the states get you, if they normally have sales tax (and you're a resident subject to it) but you try to evade it by making the sale out of state.

They hang you for the little things, you know. You really want to read your applicable state tax codes, most of them are on the web these days. If you can avoid the taxes (as opposed to evading them) even the tax men will side with you.

Like calling this a social (socialist) state and comparing that to Communism. Communism wasn't and isn't socialism, Marx and Lenin and Stalin would have all been glad to explain the fine points of the difference. Either one can work very nicely--in theory.

As Ben Franklin supposedly said, when asked what the new American government would be, "A republic, if you can keep it." In world history, republics haven't got a particularly great track record.
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post #13 of 20 Old 07-19-2011
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Quote:
Originally Posted by PBzeer View Post
.....or a registration fee if not Federally documented (which is a one time fee, while state registrations are generally yearly).
Minor point, but some states still require you to register a federally documented boat. You just don't get hull numbers. My state, RI, is an example. Federal (USCG) documentation is a substitute for a state title, not necessarily registration.


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post #14 of 20 Old 07-19-2011
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Here's an idea, pay your taxes and quit whining.

And, yes, when I've bought boats in California (twice now) I've not bothered to play games with off-shore "deliveries" and hiding the boat in Mexico for months. I just paid my taxes and that was that.

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post #15 of 20 Old 07-20-2011
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Originally Posted by SlowButSteady View Post
Here's an idea, pay your taxes and quit whining.
You in Congress?

I think it is wise to look around and see what your options are. Some states intentionally compete for your business with lower sales/use taxes. My state, RI, has no sales/use tax on boats. Therefore, many people bring their boats here, spend money at our marinas, in our restaurants and ship's stores and keep thousands of people employed.

For that to be legal, you have to actually keep the boat here. That is the purpose of it. Trying to do so for a month and bailing out back home with a RI hailport is cheating and you will get caught at home and pay. Ask Sen. John Kerry.

The moral is, shop around and find your best deal and comply with all the rules. Try to pull a scam and you will pay double.


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post #16 of 20 Old 07-20-2011
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There is nothing wrong with looking around for options as to whether you pay the state ST or UT. On the other hand, for some of us, looking around is not an option, better to just do as mentioned, pay the tax, do not deal with offshore delivery etc. For those ont he east coast, looking around may be an option, for the 3 states on the left coast of the contiguous 48, looking around frankly, is NOT a true option, except for some along with columbia river. From where I sit, easier to pay the ST/UT and shut up. No I am NOT in congress, be it a state, federal or city/county type elected position.

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post #17 of 20 Old 07-20-2011 Thread Starter
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Quote:
Originally Posted by SlowButSteady View Post
Here's an idea, pay your taxes and quit whining.

And, yes, when I've bought boats in California (twice now) I've not bothered to play games with off-shore "deliveries" and hiding the boat in Mexico for months. I just paid my taxes and that was that.
I have been paying my share of taxed all these years. But it is nothing wrong to investigate ways to keep as much as money in my pocket. Besides, it keeps my neurons firing up and keeps me informed.

The fact is IRS or any state revenue dept is on going to knock on my door with a check telling that I pay them too much.


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post #18 of 20 Old 07-20-2011 Thread Starter
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A useful link for State of Maryland Boat tax. It has all other eastern states too.

2010 Maryland Boat Tax

Good input and comments. Captains. Thanks.


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post #19 of 20 Old 07-20-2011
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My advice is to decide where you would like to use the boat, and pay the appropriate tax to that jurisdiction (and save your paperwork for future credit if you change states). Maryland, in particular, has a lot of experience catching bogus Delaware registrations and slapping liens on violators until they pay the tax, penalties, and interest. Do some searches and you'll see the horror stories. You may get away with it for awhile, but when they catch up with you and slap a lien on your boat, you will be in for a world of hurt.

If you really want to avoid sales tax legitimately, you can register in DL and keep your boat in the canal at Summit North. But the long motor out to good sailing waters and their high slip fees will likely suck away a significant portion of your savings and enjoyment.

I suspect we'll hear some libertarian BS about why these taxes are unjust and therefore you should evade them. But life is too short - I suggest you just pick your sailing area, pay the money, and enjoy your boat.


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post #20 of 20 Old 07-20-2011 Thread Starter
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Quote:
Originally Posted by RhythmDoctor View Post
My advice is to decide where you would like to use the boat, and pay the appropriate tax to that jurisdiction (and save your paperwork for future credit if you change states). Maryland, in particular, has a lot of experience catching bogus Delaware registrations and slapping liens on violators until they pay the tax, penalties, and interest. Do some searches and you'll see the horror stories. You may get away with it for awhile, but when they catch up with you and slap a lien on your boat, you will be in for a world of hurt.

If you really want to avoid sales tax legitimately, you can register in DL and keep your boat in the canal at Summit North. But the long motor out to good sailing waters and their high slip fees will likely suck away a significant portion of your savings and enjoyment.

I suspect we'll hear some libertarian BS about why these taxes are unjust and therefore you should evade them. But life is too short - I suggest you just pick your sailing area, pay the money, and enjoy your boat.
Just wanted to be clear, in post #19

How does state Sale tax work?

I replied that I was NOT going to avoid sale Tax. So don't need to alert MD Dept of Revenues. Besides, my CPA or tax attorney must sign off our personal and corporate tax returns. If I go to jail, one of them will go with me. I pay them lot of money over the years, but I don't think I paid them enough to go jail with me. In other words, everything is legal and clean here.


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