Taxes after purchase

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Taxes after purchase

Postby Old PDQ Message Board » Mon Apr 26, 2004 5:35 am

Taxes after purchase

Posted by Sharon Larry Duhaime on June 22, 2002 at 19:40:00:

We are looking for a way to avoid Michigan 6% sales tax when we purchase the
MV34, especially since we won't be bringing it back to Michigan until summer
2003. What info do you learned folks have about sales taxes in your states?
Thanks, Sharon

Follow Ups:

Re: Taxes after purchase Goodbye Columbus 08:03:06 06/27/02 (0)
Re: Taxes after purchase Kevin Smith 20:29:35 06/26/02 (0)
Re: Taxes after purchase jack coulter 12:30:36 06/26/02 (0)

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Re: Taxes after purchase

Posted by Goodbye Columbus on June 27, 2002 at 08:03:00:
In Reply to: Taxes after purchase posted by Sharon Larry Duhaime on June 22,
2002 at 19:40:00:


Free legal advice is worth what you pay for it. Sometimes the same goes for the
advice that you pay for. But the best way to avoid a use tax on a boat is never
register it in a state that has a use tax. The use tax is a substitute for a
sales tax. It is assessed when someone brings a boat into a state and registers
it with the state. Usually, the boat has to stay in the state for some period of
time before one is liable for it. It is on the value of the boat, less any sales
tax paid to another state

So to attempt to avoid such tax in Michigan, the first thing to do is Document
your boat with the U. S. Coast Guard. In many states this obviates the necessity
to register. Usually, the act of registration is what causes the use tax to be
imposed. In those states that require registration of a Documented boat, this
may or may not cause the triggering of the need to pay the tax

However, even in those states that don’t require registration of a Documented
boat, they may have a vigorous enforcement procedure where they require a marina
or have inspectors check to see if the tax has been paid on documented boats

So the short answer to a long response is: 1. Document the boat; 2. Determine
the time period that Michigan allows a boat to stay w/o incurring the use tax;
3. Move the boat to another state or Canada every so often so as to not come
within the period defined (keep receipts for dockage or gas purchases to show it
was out of Michigan); 4. Pray and hope that Michigan authorities don’t become
aware of your boat and try to tax it. I know of many people that have done this
successfully in Ohio.

Follow Ups:

Re: Taxes after purchase

Posted by Kevin Smith on June 26, 2002 at 20:29:00:
In Reply to: Taxes after purchase posted by Sharon Larry Duhaime on June 22,
2002 at 19:40:00:


In Illinois, there is a tax on boats purchased new, but not on used boat
transactions that are buyer to seller (buying from a dealer still cost sales
tax)

I was very relieved to hear this wehn buying Phenix

- Kevin Smith
Phenix, 32007
Chicago

Follow Ups:

Re: Taxes after purchase

Posted by jack coulter on June 26, 2002 at 12:30:00:
In Reply to: Taxes after purchase posted by Sharon Larry Duhaime on June 22,
2002 at 19:40:00:


Hi Sharon: I don't know if this is any help, but North Carolina has a maximum
ceiling on new boat tax of $1500. We're a new Hunter boat dealer and found this
to be advantageous to some of our clients. There is no sales tax on used boats
in N.C. Good luck! Jack on "MOJO" PDQ 36 #78

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