Calif boat taxed twice

Yesterday I received a letter in the mail from my local Lassen County Tax Assessor. He wanted to know how much I paid for my boat and the date of purchase all on official state tax forms. The form was two sided and had lots of questions, length, HP, condition, business use or personal, living quarters, and such. The only parts highlighted were amount of money, date of purchase, use and sign.

I already registered the boat with the Department of Motor Vehicles (DMV)and paid taxes on the purchase price for boat and trailer. So, today I filled out the form and walked into the County Tax Assessors Office. I informed them I was unfamiliar with this form and so were all my local boating friends, but assumed I was going to be taxed again. The did not refer to it as a luxury tax but that is what it is. It was referred to as a personal property tax.

I was informed that DMV informs the tax collector of all transactions and the Tax Collector decides to make the bar at boats that sell above $5000 will be assessed about a 1% tax on the purchase price for the boat excluding the trailer. This results in my 17 year old boat being taxed twice on the purchase price. Once for transfer of ownership and Calif License and once for personal property over $5000 that the Tax Assessor knows about.

Orlando76 wrote: Not uncommon.

Welcome to my world too.....just wait till your assessors begin including computers and appliances in the home or office over a set value. That is our personal property tax.
It is a luxury to live where we do!

They repealed the Illinois personal property tax back in 1970. I remember it being one of my dads hot buttons. Just think of your tax money to the tune of 221 million was earmarked to people who would rather see us dead   

Gary S wrote: They repealed the Illinois personal property tax back in 1970. I remember it being one of my dads hot buttons. Just think of your tax money to the tune of 221 million was earmarked to people who would rather see us dead

I make huge efforts to avoid politics on this site. There is a reason I live in Far North Eastern California. The natural resources and open land is amassing. People are hard working and do not vote the way California is known for voting. Northern California and Southern Oregon have been trying to separate from their individual states to create one state almost as long as the two states have existed. This large chunk of land populated mainly with communities with under 100,000 people. Does not receive representation.

Personal property tax is every year, and I was not aware of any 5K limitation. I pay it every year on my 82 Nautique, which isn't worth 5K.

The California Constitution (Section XIII, Article 1) provides that all tangible property is taxable unless it is otherwise exempted by the Constitution or by the legislature. Household personal property was exempted in the 1950's, but privately-owned boats are still to property tax.

I'm not sure if still true. The Tax used to be assessed against the legal owner on Jan 1. So, if you bought the boat after that, the previous owner would be on the hook for the previous year's tax.

BKH

Sounds like a good deal... if you're a boat dealer and don't have to register your inventory.

No property tax on boats in CT (they do hit us for all trailers and cars)... there's been discussion of eliminating that loophole. Hope it never happens.

Donald80SN wrote: In late December, here in North Carolina, I get a letter each year from my county, that ask me to list any boats, trailers , utility trailers, Campers, Air Planes, etc., that I have purchased the previous year. It is like an affidavit and when you sign it you are telling them you have no other items,

I can see them taxing you when you register, but seems like it ought to be nobody's business, but your own on what you spend your money on.

It would be real hard to leave a low tax, no income tax, no personal property state like TN that does not have all that crap and go to a state like some of y'all describe. Wow.

That works until you realize the previous owner wrote the transaction price on the DMV paper work.