Taxes

[AirTool]

RE: Tax

Note you need to know the rules in both states. I drove to Florida to purchase my boat. Dealer collected the taxes on the sale for Texas P&WD...not Florida. I got a paper FL plate for the new untitled trailer and brought it all back to TX. Dealer was also going to handle the trailer but gave up because Harris County TX employs ding dongs. They sent me a dummy bill for the trailer and I took it to Harris County Tax Assessor Collector to title, license, and pay state sales tax.

In Texas, I'm 99% sure you can't take credit for the trade unless it is processed through the dealer. I think they should allow a wash if you sell it yourself within 30 days of the new purchase. But, hey, what do I know. I voted for Bush in 4 elections.

[BKinSoCal]

RE: Tax

The crappy thing about the 1% tax in CA is they call it a "Luxury Tax". It is paid to the county in which your boat is located (for me, I live in Orange County, but have a place on the Colorado River in San Bernadino County where I keep my boat) and this tax is not deductable at tax time. I just registered my boat in AZ for this reason. It'll save me roughly $320 a year.

[zapada]

RE: Tax

Unless you live in a state where you don't have sales tax, you're going to end up paying the sales tax when you register the boat. If you have to take out a loan to buy the boat than the bank will likely collect the sales tax from you at that point (whether you buy from private party or not). In the case of saving a dime on taxes by trading in your boat; yes it is true that you will only have to pay sales tax on the difference when you trade in your boat on a new one at the same dealership. Good luck!

[skiinxs]

RE: Tax

Although Missouri does have a personal property tax, sales tax on cars and boats is offset by a sale within 180 days before or after. In other words, if you sell a boat in the fall to anyone (private party or dealer) and buy a boat in the spring (less than 180 days later), you can deduct the amount you sold the last one from the amount you pay for the next one and only pay sales tax on the difference. Personal property tax is owed on what you own on January first each year. The key here is not to own a boat on January first.
Dave

[AuMDLST]

RE: Tax

If you get the dealer involved, for a fee, they could do the entire transaction getting you the savings on the taxes.

California has been in the Red for so long they will do anything to collect some money.

Florida has low sales tax - no income tax and we can ski anytime.