Sales Tax on out of state purchase |
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Orlando76
Grand Poobah Joined: May-21-2013 Location: Mount Dora, FL Status: Offline Points: 3108 |
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Posted: December-23-2014 at 11:21am |
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Just have the receipt written up as $1000 or so.
Especially with an older boat. |
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74Wind
Grand Poobah Joined: August-02-2011 Location: Georgia Status: Offline Points: 2101 |
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Similarly I lived in a border town and people used to go over to ny to get better deals on appliances etc. As i recall ny would audit their books and send use tax bills to out of state
customers. |
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1974 Southwind 18
1975 Century Mark II |
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Riley
Grand Poobah Joined: January-19-2004 Location: Portland, ME Status: Offline Points: 7957 |
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Maine has the same law. If you don't write in a number on the use tax line, you are automatically taxed $40. Neighboring NH does not have a sales tax, so it has always been a problem for the state having ME residents buy in NH to avoid the sale tax. They've actually had state employees staking out NH stores and writing down license plate numbers. It's just a matter of time before all the states co operate and all internet sales are taxed automatically. |
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JDD33
Senior Member Joined: October-20-2012 Location: Natick, MA Status: Offline Points: 499 |
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Sorry, I haven't figured out how to use the quote thing yet!
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Old school goin back to school!
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JDD33
Senior Member Joined: October-20-2012 Location: Natick, MA Status: Offline Points: 499 |
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JDD33 wrote: So I guess the grey area would be if I bought the boat over the phone or internet, and had it shipped up here. Then would it fall under the regulations of say Amazon or Ebay? Or if you buy on line at N3 do you pay sales tax? Ski dim? Overtons? John,we in Illinois are required on our state income tax return to volunteer how much we spent for the year on Internet purchases and pay the appropriate tax-------- Hmmm.... I haven't seen that one yet but I'm sure that here in Taxachusetts they will be implementing a new law soon enuf to make sure that they get all of what's coming to them! Don't know that I'm ready to voluntarily give away more of my money...... Do you think hitting F-12 or F-24 would fix this problem? |
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Old school goin back to school!
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Gary S
Grand Poobah Joined: November-30-2006 Location: Illinois Status: Offline Points: 14096 |
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John,we in Illinois are required on our state income tax return to volunteer how much we spent for the year on Internet purchases and pay the appropriate tax-------- |
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Tim D
Grand Poobah Joined: August-23-2004 Location: United States Status: Offline Points: 2641 |
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Here in NC, you used to pay sales tax and the following year, pay property tax. Now you pay sales tax and within two months of the purchase you get a property tax bill. I think it's double taxation the first year.
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Tim D
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td_in_nc
Senior Member Joined: March-30-2012 Location: Clayton NC Status: Offline Points: 381 |
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I just went through this with a trailer I bought in Florida. I even called NC DMV who said I should not pay the tax. However Florida law requires you to pay the sales tax /user free in FL. Then when you register it in your state they collect the money from FL. You do not pay the tax twice. The trick is do not pay more tax than what you pay in your state. I had to sign paperwork stating that I am registering the trailer in NC which has a tax less than FL. If you PM me I can send you reference to the FL code and a letter the dealership got from the the state of FL.
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JDD33
Senior Member Joined: October-20-2012 Location: Natick, MA Status: Offline Points: 499 |
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Yes, as a business they have to collect the sales tax on a product they are selling to a person in state. Wether it's a ski rope, wake board , or boat the are required to collect the states sales tax.
I'm pretty sure mass didn't get any money as the sale was in Indiana, and therefore I owned the boat and couldn't be taxed again on something I already paid sales tax on. So I guess the grey area would be if I bought the boat over the phone or internet, and had it shipped up here. Then would it fall under the regulations of say Amazon or Ebay? Or if you buy on line at N3 do you pay sales tax? Ski dim? Overtons? Maybe they would send a form with the bill of sale stating that I would have to pay the sales tax in my own state? |
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Old school goin back to school!
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quinner
Grand Poobah Joined: October-12-2005 Location: Unknown Status: Offline Points: 5828 |
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Tube top tax always ends up like double indemnity
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Riley
Grand Poobah Joined: January-19-2004 Location: Portland, ME Status: Offline Points: 7957 |
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N3 had to collect sales tax? That would be a deal breaker for me. Does Mass get to collect the tax from IN or do they lose.
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JDD33
Senior Member Joined: October-20-2012 Location: Natick, MA Status: Offline Points: 499 |
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I'm with Gary. When I I purchased my 87 SN from N3 I needed to pay the Indiana sales tax because they are a dealer and the transaction was in Indy. They provided me withe the paper work saying that I had already paid the sales tax. When I went to register here in Mass. I didn't need to pay any sales tax just the registration and title fee. What I did discover was that if the sales tax paid was lower than the the state you live in or are registering the boat in you have to pay the difference. If it's higher you loose! Indy is 6.5 and Mass is 6.25%. So I overpaid by .25%
With a private sale ,as all my other boats have been,I was responsible for the bill of sale with the price paid for the boat thus determining the sales tax. Nice American tuber..... I mean Skier.. |
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Old school goin back to school!
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Gary S
Grand Poobah Joined: November-30-2006 Location: Illinois Status: Offline Points: 14096 |
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When I bought my used 95 at N3 in Indy I had to pay their tax but when I registered it here in Illinois I did not owe anything since I had already paid. Being used in Illinois you pay a flat fee by year because they got wise to people turning receipts for say 500 when they really paid 10K for something.
I bet if Quinner bought this American Skier from this babe in the tubetop he'd be pretty taxed |
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8122pbrainard
Grand Poobah Joined: September-14-2006 Location: Three Lakes Wi. Status: Offline Points: 41045 |
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Pay phones aren't the easiest thing to find these days! Hopefully they can clear it up pretty quick since you are dealing with a government employee!
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skutsch
Grand Poobah Joined: June-19-2008 Location: Racine, WI Status: Offline Points: 2874 |
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I would just call them (the state - 800-352-3671) and explain the situation, I bet they can clear it up pretty quick. Call from a pay phone and don't use your real name - HA!
If nothing else, have the seller meet you in GA, then the sale doesn't take place in FL. |
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quinner
Grand Poobah Joined: October-12-2005 Location: Unknown Status: Offline Points: 5828 |
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Another example, in 2005 I bought a boat from a dealer in Wisconsin who charged me their 5% state sales tax, when I registered/titled in Illinois I paid Illinois 1.5%, total tax paid on purchase was = Illinois 6.5% state sales tax. Buying used I have never paid tax until registration/title time.
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Cumby
Senior Member Joined: February-03-2014 Location: Upstate SC Status: Offline Points: 209 |
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Hmmm, I see your point but the word "registered" is hanging me up.
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skutsch
Grand Poobah Joined: June-19-2008 Location: Racine, WI Status: Offline Points: 2874 |
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I think this is your out:
A boat sold by or through a registered dealer or broker to a purchaser who is a nonresident of Florida at the time of taking delivery of the boat in Florida is exempt Even though it doesn't say "Private party" I think broker could be inturpretted pretty loosely |
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8122pbrainard
Grand Poobah Joined: September-14-2006 Location: Three Lakes Wi. Status: Offline Points: 41045 |
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I agree with Joe or that's how it works in Illinois as well as Wisconsin too.
Some states are even going after out of state internet sales as well. Several years ago I got nailed for taxes of several hundred from purchasing online tobacco. With the economy hurting many states, towns, etc., they are going after every penny. |
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Riley
Grand Poobah Joined: January-19-2004 Location: Portland, ME Status: Offline Points: 7957 |
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Same as in Maine. I've never heard of having to pay 2 sales tax on the same purchase. You usually pay the state where you register your boat.
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Cumby
Senior Member Joined: February-03-2014 Location: Upstate SC Status: Offline Points: 209 |
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Maybe Im reading this wrong, but it sounds like anyone out of sate would have to pay a "use tax" in FL.
http://dor.myflorida.com/dor/forms/current/gt800005.pdf |
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skutsch
Grand Poobah Joined: June-19-2008 Location: Racine, WI Status: Offline Points: 2874 |
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I agree with Joe - in WI, IL and IA, you show up with a bill of sale and title, you pay your sales tax and get your registration and probably a title tax and get the reissued title. I don't know why you would have to pay sales tax to FL unless you were going to keep it registered there. Maybe the seller (assuming that is who gave you the information) assumed you were going to register in FL.
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JoeinNY
Grand Poobah Joined: October-19-2005 Location: United States Status: Offline Points: 5698 |
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Typically you have to pay sales tax in your state when you go to register the boat, at least in NY.
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Cumby
Senior Member Joined: February-03-2014 Location: Upstate SC Status: Offline Points: 209 |
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I am in SC and have been looking at boast out of state. I read something online about Florida that pretty much sounds like I have to contact the state after purchase and pay a sales tax, even though Im moving the boat to SC. Does anyone know if this is correct and if the buyer is responsible for it? If so, Im assuming every state is different on whether you have to pay that state or not?
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