In addition to the state tax, most local jurisdictions impose the local option sales tax. I have purchased 2 boats from out of state and was not charged sales tax on either purchase. Minnesota State Sales tax will not be collected on trailers and automobiles if the purchasing party provides valid identification showing residency in a state outside of Minnesota. Similarly, in Florida, a non-resident need not pay tax if the boat is taken to a different state shortly after purchase. Subsequent to the 90 days, the buyer sails the boat into California and begins using it. Local Option Sales Tax. Probably the simplest way of avoiding sales taxes on a boat purchase is to buy the boat in a state that doesn't have a sales tax. I have heard plenty of bad advice on avoiding sales tax on boat purchases. I bought a new boat & trailer out of state. Title or registration will be given to the purchaser upon completion of the sale at Used Boat World. Once you register the boat with the state though, a property tax will be assessed and you will be sent a … Within a county, some cities may have the local option tax… MN, last year. Use the cost of the entire package (boat, motor, fish finder, etc.) Alaska also has no state sales tax, but municipal sales taxes add an average of a little under 2 percent. The county clerk in CO called the dealer and asked what I paid for the trailer because the dealer didn't list the price of the boat and trailer separately on the bill of sale. State Sales and Use Tax. The rate is 1%. Louisiana sales and use tax will be assessed on the lower of the boat’s cost or fair-market value at the time the boat was brought into the state. The other state did not tax either. Be particularly aware if dealer address on top of MSO is out-of-state. The CDTFA will find this transaction to … If sales tax has been paid, proof must be provided. Re: PA out of state boat purchase & taxes When you register the boat, you will be required to pay 6% sales tax on the bill of sale price---unless it is obviously lowballed, like 100 bucks for a 1990 20 foot hull. These include Montana, New Hampshire, Delaware and Oregon. The state sales tax rate and use tax rate are the same. If you have moved to Louisiana from another state, provide title and registration from your previous state of residence. Use tax of 6% must be paid to the State of Michigan on the total price (including shipping and handling charges) of all taxable items brought into Michigan or purchases through the internet, by mail or by phone from out-of-state retailers that do not collect and remit sales or use tax from their customers. Following the advice of “parking it” for 90 days he pays dock fees and leaves it out of state. Thats a property tax. crosses state or international borders, so if sales tax is paid on a boat, use tax typically does not need to be paid. If you anticipate taking your boat out of the country, using it in a state that does not have a sales tax, or actively cruising between lots of jurisdictions, avoidance of paying the initial sales tax can be a big cost savings. Dealer sales to MN residents, in-state and out, are subject to 6.875% Minnesota sales or use tax and any applicable local tax. However, if you have a reasonable price stated, the Motor vehicle license store will accept it. In New York, use tax is imposed on residents only and must be paid if the boat purchased in another state is used in New York for 90 consecutive days. The rate is 6%. I was taxed in CO only on the value of the trailer which was $2,000.00. 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