Taxation

Discussion in 'Ask the Broker' started by lslavick, May 10, 2018.

  1. lslavick

    lslavick New Member

    13
    Apr 8, 2018
    Pickwick Lake
    2000 380DA
    CAT 3126
    I live in Tennessee, buying a boat from a private seller out of state and going to moore it at a marina in Mississippi. Is the mooring state where I consider my taxation? From my research Mississippi does not tax boats purchased out of state from a private seller. Are there any property tax implications to consider? The boat will be USCG documented. Any help would be appreciated.
     
  2. LG111

    LG111 Active Member

    321
    Jan 4, 2015
    NW
    410
    8.1
    Generally the state you live in (if there is sales tax) will tax the boat reguardless of the state you purchased it, basically via the county tax your zip code is in. If it needs to be registered then they gotcha! Bring your bill of sale with you to the DMV and a check!
     
  3. ZZ13

    ZZ13 Well-Known Member GOLD Sponsor

    Nov 25, 2009
    Lady's Island, SC
    2001 400 Sedan Bridge
    Cummins 450 Diamond
    I lived in Virginia and bought a boat in Virginia. I paid Virginia sales tax on the purchase. I immediately moved the boat to South Carolina where it stayed full time while I lived in Virginia. I registered it in SC and paid annual SC personal property tax on it. Check your state laws, but generally the state where the boat is kept for more than 50 percent of its time is where you are required to register it and pay any annual state taxes on it. I know in SC the county tax folks walk around the marinas regularly to determine if a boat is there 50 per cent of the time.
     
    bahamabreisus likes this.
  4. bahamabreisus

    bahamabreisus Well-Known Member

    Oct 25, 2007
    Hampstead NC
    500 dancer, previous 420,390,300 dancers
    detriot 8v92
    ZZ, is that 50% a written law or is it what they tell you. In NC they try to tell us the same thing, but the written law as I understand it, is, where is the the boat Jan 01 of the year?
     
  5. ZZ13

    ZZ13 Well-Known Member GOLD Sponsor

    Nov 25, 2009
    Lady's Island, SC
    2001 400 Sedan Bridge
    Cummins 450 Diamond
    Written. In SC it's actually 60 consecutive days or 90 days total for annual personal property tax. But localities can stretch that to 180 days.
    http://www.boattax.com/ma-boat-tax-south-carolina-htm/
     
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  6. CNYBoater

    CNYBoater Member

    52
    Aug 14, 2017
    1994 200 Overnighter, Single Axle Easy Load'r Galvanized Trailer, 2009 Chevy Trailblazer
    Single 1994 Mercury Black Max V135 O/B
    Not an answer to your question, but in NY, they want the tax no matter what...

    Not a boat, but a few years ago my mother traded in her Motorhome in FL for an upgrade. The dealer registered it in FL for a short term (I Think it was 90 days or so) and when she came back to NY, The DMV wanted the 8% sales tax (our combined state/county rate) to register it. Unfortunately, she had to pay that in cash, as it was not something financed with the purchase.

    When I purchased my 1994 200OVOB last year from a private individual and went to register the boat, NYS DMV wanted 8% of NADA because I paid the private seller roughly half the bluebook and they were not a relative, so no exemption for below value purchase.
     
    Last edited: May 11, 2018
  7. Gofirstclass

    Gofirstclass Well-Known Member GOLD Sponsor

    Apr 20, 2010
    Tri Cities, WA
    1995 550 Sedan Bridge,
    2010 Boston Whaler 130 Super Sport,
    1981 Boston Whaler 130 Sport,
    CAT 3406C's, 580hp.
    The reason they don't take a buyer's word for what they paid for the boat from a private seller (even with a receipt) is collusion between the two could get the seller to report a much lower sales price so the buyer could save some sales tax. I thing the majority of states work this way.

    "
    The DMV wanted the 8% sales tax (our combined state/county rate) to register it. Unfortunately, she had to pay that in cash, as it was not something financed with the purchase." That was smart. Why would you want to pay interest for many years on the sales tax?
     
  8. The Bill Collector

    The Bill Collector Well-Known Member SILVER Sponsor

    Jun 2, 2008
    Tacoma, WA
    450 Sundancer
    3126 Cat's
    Title it in Missippi if that is where you are mooring it and it is more favorable tax wise !!! TN. doesn't need to know a thing about it... You have 2 different residences.
     
  9. CNYBoater

    CNYBoater Member

    52
    Aug 14, 2017
    1994 200 Overnighter, Single Axle Easy Load'r Galvanized Trailer, 2009 Chevy Trailblazer
    Single 1994 Mercury Black Max V135 O/B
    Understand what you are saying, merely meant she was not anticipating a $4000 registration/sales tax cost to bring a registered vehicle in from one state to another. Neither she, nor I have made a transaction that had previously dealt with bringing a DMV item from a lesser taxed state to NY.
     
  10. Prosideus

    Prosideus Member PLATINUM Sponsor

    525
    Jun 5, 2012
    Franklin, TN - Old Hickory Lake
    400 Sedan Bridge '96
    Cat 3116
    I can shed light on this. Yes, the mooring state in your situation is the Tax state. And I don’t believe MS has tax if you are buying it from MS. I live in TN, bought a boat in MS. Kept it at Grand Harbor. I am like 99% sure I did not pay taxes on the boat because I did not bring it into MS or move it out of MS. After a year or so, I moved the boat TN. Had to pay tax on a depreciated amount in TN when I registered it. They wanted the bill of sale, but I argued it was two years old at that point. Paid a lower tax amount as a result. Call pickwick yacht brokers and talk to Davis or Rodney. They will help you out.
     

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