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Old 05-06-2013, 20:06   #1
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Maryland Tax

Hello,

My broker is telling me that he is obligated to collect maryland state sales tax on any vessel bought from him. It is my understanding that I can pay state sales tax myself directly to the state... who is right?

- z
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Old 05-06-2013, 20:38   #2
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Re: Maryland Tax

I live in Ohio, bought my boat in Illinois, and had s shipped and registered in Michigan. All my broker needed was to send them proof of the Michigan registration (and taxes paid). They needed to keep it in the file. I think you tell your broker that you will be happy to provide them with the proof of payment, but you will pay the taxes. It happens a hell of a lot faster then them mailing this stuff back and forth to other states.
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Old 06-06-2013, 05:26   #3
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Re: Maryland Tax

Your Maryland broker is correct.

Maryland law requires brokers to collect sales tax and remit it to the state as part of the closing transaction. The only exception is if you plan to remove the vessel from Maryland waters within x days of closing. You then have to sign an affidavit to that effect.

I was a broker in Annapolis for a short while. We did this on every closing.

David
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Old 06-06-2013, 06:08   #4
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Re: Maryland Tax

Be sure you get a clear record of sales tax paid to show future tax collectors coming after you.
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Old 06-06-2013, 06:12   #5
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Re: Maryland Tax

David is correct. I owned a brokerage in Maryland and the law requires the broker to collect and pay the tax if the boat is staying in Maryland. What's the difference who pays it as long as it gets paid? Chuck
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Old 06-06-2013, 06:34   #6
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Re: Maryland Tax

As a point of reference, the law is the same in Florida. That is, the broker is required to collect the tax, unless the buyer signs an affidavit saying that he will move the boat out of the state. So, the Maryland law is by no means unique.
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Old 06-06-2013, 06:59   #7
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Re: Maryland Tax

Quote:
Originally Posted by zboss View Post
Hello,

My broker is telling me that he is obligated to collect maryland state sales tax on any vessel bought from him. It is my understanding that I can pay state sales tax myself directly to the state... who is right?

- z
What did you buy?
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Old 06-06-2013, 08:49   #8
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Re: Maryland Tax

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Originally Posted by Waterwayguy View Post
David is correct. I owned a brokerage in Maryland and the law requires the broker to collect and pay the tax if the boat is staying in Maryland. What's the difference who pays it as long as it gets paid? Chuck
I want to pay my tax with a CC so I can get marriott points

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What did you buy?
Nothing yet... it sucks that you have to pay sales tax on something that has already had sales tax paid on it multiple times. I wish I would triple dip my salary.
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Old 06-06-2013, 09:09   #9
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Re: Maryland Tax

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I want to pay my tax with a CC so I can get marriott points



Nothing yet... it sucks that you have to pay sales tax on something that has already had sales tax paid on it multiple times. I wish I would triple dip my salary.
The broker may be able to make arrangements to pay the FEES using your credit card. You need to ask. This is NOT a sales tax as far as the state is concerned. These are often labeled FEES such as User Fee or an Excise Fee and sometimes Excise Tax because double taxation is a violation of the Constitution. Chuck
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Old 06-06-2013, 11:01   #10
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Re: Maryland Tax

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...because double taxation is a violation of the Constitution.
The Maryland Constitution? Double taxation is most certainly not a violation of the U.S. Constitution.
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Old 06-06-2013, 11:42   #11
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Re: Maryland Tax

I bought a boat in MD and the broker was from FL. We had to sign affidavits for both states saying that we would not leave the boat in either state to avoid the sales tax.

Scott
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Old 06-06-2013, 12:08   #12
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Re: Maryland Tax

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Originally Posted by s/vPainkiller View Post
I bought a boat in MD and the broker was from FL. We had to sign affidavits for both states saying that we would not leave the boat in either state to avoid the sales tax.

Scott
I'm not trying to avoid paying the tax, just want to pay the tax separately and directly to the state to get my cc points!
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Old 06-06-2013, 17:10   #13
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[QUOTE="Waterwayguy;1253949"]

The broker may be able to make arrangements to pay the FEES using your credit card. You need to ask. This is NOT a sales tax as far as the state is concerned. These are often labeled FEES such as User Fee or an Excise Fee and sometimes Excise Tax because double taxation is a violation of the Constitution. Chuck[/QUOTE

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