You will be paying the tax when you register the boat. Each state has its own laws so you need to check yours. I just purchased a used boat from an individual in SC and I had to pay the $300.00 capped sales tax. Of course, personal property tax on it will be about $4K per year.
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Ron
2000 Camano Troll
2003 Glastron GS249 (for sale)
North Charleston, SC
Here in NC, if you have a private individual buy from another private individual, it is considered an occasional sale and thus not subject to a sales tax.
Last year in Montauk, The IRS came knocking on the doors of all the New York Charter captains and found that they had used the federal registration to not pay NYS sales tax. I heard that many had to pay tens of thousands of dollars in taxes and penelties upto $90K...WOW don't F*&K with Uncle Sam's IRS! Just pay it up front!
__________________ "XIAO MU JI" Aluminum Sportfisherman Battleship
You pay sales tax when you take delivery from dealers, no matter where you reside. Then when you register the boat, whatever amount of tax you paid is deducted from what you owe as a "use" tax. Of course, if you live in MT or DE or OR, you pay no sales tax, only an ad-valorem use tax.
Last year in Montauk, The IRS came knocking on the doors of all the New York Charter captains and found that they had used the federal registration to not pay NYS sales tax. I heard that many had to pay tens of thousands of dollars in taxes and penelties upto $90K...WOW don't F*&K with Uncle Sam's IRS! Just pay it up front!
I don't know why the IRS would come knocking. More likely the State of NY, as it is a state sales tax. To my knowledge there is no Fed sales tax - yet. Documentation is required for boats over 5T or when required by banks. I guess hull registrations aren't as traceable.
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