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SkitterPopper

Boat Tax

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SkitterPopper    0
SkitterPopper

Does anyone know if you have to pay sales tax when you register a boat after buying it from a private party? Thanks in advance.

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hanson    1
hanson

No sales tax on the boat.

You do have to pay sales tax on the boat trailer when you transfer that over. They'll ask you what you think the trailer is worth and you'll be taxed on that amount. Think low! smile.gif

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Shack    16
Shack

Ya, do not forget about the trailer!!

When I got my boat, all tabs and stickers were up to date.

I figured why go and pay registration now, wait until the tabs are do (My first mistake). So another year goes around and I go in to register boat and (back then) get new tabs for trailer plate. Boat went great, two seconds. It was actually strange how fast it went and no ID needed.

Then came the trailer!

It came up in computer as a lean was still held against it. I had to track down former owner and find out the lean is still not paid in full. By then they had come out with life time sticker and he agreed to buy one. I figured the trailer is a part of a financial mess, because that is why I got a great deal on boat (had to get rid of). Last fall I did get lean release and transferred over to my name. I found out since there is a title on a trailer, a lean can be placed against it. A lean can not be placed against a small pleasure craft (at least back then) because there is no title, just a title card is what I was told.

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vister    0
vister

just tell them that you replaced the tires, bearings, wiring and the lights, they may consider it to be homemade that way, at least mine was considered that, BUT, i did do all that work on it though, then it costs ya next to nothing.

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Shack    16
Shack

vister,

I really did visit that idea. I think all I had to do was take a picture and fill out a form. After former owner purchased a life time sticker, it became past tence untill I reciveved the lean release.

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SkitterPopper    0
SkitterPopper

Thanks everyone for the answers. I looked up the trailer on NADA and it came out to 700 so I just payed tax on that, did not want to lie and get caught. What is $42.00 after spending $11,000 on a boat.

Shack:

You might want to check when giving advice. You are lucky you were never checked by a CO.

Quote:

When I got my boat, all tabs and stickers were up to date.

I figured why go and pay registration now, wait until the tabs are do (My first mistake). So another year goes around and I go in to register boat and (back then) get new tabs for trailer plate. Boat went great, two seconds. It was actually strange how fast it went and no ID needed.


Here is what the state requires:

If you buy a boat that is currently registered in Minnesota, obtain the current registration card from the previous owner. Within 15 days of the transfer, you must send or take the registration card, application for transfer, and transfer fee to the DNR License Center or deputy registrar.

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