Tax implications when crossing state lines

[PBzeer]

Since government is never satisfied to remain at a static size or budget, the need for money is ever growing. By spreading your "tax payments" over many different types, they hope you never really notice just how much of YOUR money you are contstantly giving to the government, at all levels.

[Charlie]

He got the house mainly b/c it was worth less than they had paid for it. Of course that changed and she had retained an equity share position that allowed her to participate in the profit at sale time.

There was a song that Jerry Reed wrote called "She got the Gold Mine" (I got the shaft). That's usually how it goes. Now adays when I find a friend on there second or third divorce I say to them, "Why don't you find some woman you hate and just buy her a house it'll be a lot cheaper in the end>"

[mudnut]

coot,If you own your house you pay" rates".I pay $380.00 AUD 4 times a yr.This covers water,garbage collection and sewerage costs.If I own a boat then thats just something I own,like,a car or an RV.But on the other hand I pay registration on them per yr.I would imagine even you pay that.PBzeer-What amazes me is that we all know about it but are not in a position to stop it!!!.After all they are suposed to be working FOR US,apparently this is not the case,considering their salary.Charlie,Charlie Charlie ,Usually If any of my friends find themselves in a divorce situation,I warn them straight up,after the 2nd &3rd time,there is no warning that anybody can give them!!!LOL.Mudnut.

[ssullivan]

Originally Posted by mudnut

Hey KAI NUI,I shure hope old Johnny Howard isn't reading this.Now I understand WHY cyclepro was asking this Question.And here I was thinking Americans came to live in OZ because they loved the place.Only kidding,It sure makes our GST tax look pitifull"Sp?"Mudnut.

Interestingly, there was an Australian defector on the dock next to me last winter who complained about how expensive everything was in OZ and how the taxes were out of hand and you needed a license to breathe. It's surprising to me to hear such a dramatically different point of view.

It's funny because we both had very different views of the US. He was of the type that thinks anyone can "make it big" with a little hard work. I'm of the type that grew up here and knows that you can't "make it big" unless you were born into it, have venture capital connections, or got very VERY lucky.

Eh... to each their own. Good to hear not all Aussies think the same way the defector did.

[hellosailor]

"then if you keep it out of state for at least 90 days and use it there and can show proof of same, such as bills for fuel etc, then you can beat calif out of its use (sales) tax. "
Catch-22, assuming that's true from the CA side of things, you'd still probably have to register the vessel AND PAY TAXES in whatever state it was in for those 90 days.
Many states have similar policies but they don't excuse you from paying use tax after 90 days, typically the period is more like 2+ years.

When in doubt--ask your own state DMV and tax departments (both) and get it in writing. Then you can look at the fun rules for each state where you might think about either buying or keeping the boat in, to dodge the CA taxes.

[Kai Nui]

Best advise yet. I agree, check with the DMV, and get it in writing. Especially if it is a Ca DMV, as their policies seem to be up for interpretation by each individual employee.
Sean, there is one other way. Anyone can make it big here, but you have to commit to it. If you aren't lucky, or old money, all you need to do is commit every waking hour to your success, live the life of a miser, forget about sailing, family, friends and social life in general, and you will probably get to that point where you can make your time your own at about 50. Of course, by then, you will probably have no idea how to enjoy yourself, and spend your remaining years living as you did the previous 30 years.

[S/V Elusive]

FYI - in California it is now 1 YEAR ... the "closed" the 90 day loop hole. MOST folk who are buying expensive boats will take their boat to Mexico for a year .

[mudnut]

ssullivan,I don't know anything about paying for air or what this blokes situation was but given the exchange rate you people would have a freaking good life over/downunder here.I agree about being born into money or getting lucky.I wasn't born poor,I worked my arse off to get there.Truth is I didn't work my arse of at all.I travelled around my country for 33yrs on the dole and casual work,just because I could,saw my people my country on the hard and never really conformed to what society expected of me.A little bit like Woody Guthrie,but,the oz story.I was destined to be a nobody,but, 5yrs ago I bought a house in a less then great city"Ipswich Queensland"and unbeknown to me the place boomed.My $80,000 house is now worth $200,000 on the market.Sometimes ya just get lucky,I did,but tax's arn't killing us here and in comparrison you people are getting a rawer deal from what I hear.Thanks to luck I can now afford to do what I want to,leave it all behind and relax.Mudnut.

[Charlie]

Thomas:
You are right about the one year thing in CA. There is also another caviat (sp?) you need to have purchased it w/o the intention of having the boat's primary use in Kalifornia.

Mudnut:
High Taxes and no national health. It's a hard life.

[ssullivan]

Originally Posted by Kai Nui

Best advise yet. I agree, check with the DMV, and get it in writing. Especially if it is a Ca DMV, as their policies seem to be up for interpretation by each individual employee.
Sean, there is one other way. Anyone can make it big here, but you have to commit to it. If you aren't lucky, or old money, all you need to do is commit every waking hour to your success, live the life of a miser, forget about sailing, family, friends and social life in general, and you will probably get to that point where you can make your time your own at about 50. Of course, by then, you will probably have no idea how to enjoy yourself, and spend your remaining years living as you did the previous 30 years.

True enough. Guess it depends on what your definition of "success" is. If success is living well and not trying to own a house, plane, cars, 2nd home, boat, etc.. etc... then we can all make it. I do precisely what you are talking about every day. I'm wearing clothes from 1997 as we speak.

I suppose I was kind of referring to people who our society considers a "success" like heads of large companies, wealthy people, etc...

[GordMay]

In general terms, success is the achievement of something desired, planned, or attempted. As with maturity, knowledge, intelligence & etc, the pursuit of success is often a progression, rather than a singular event or attainment.
Since each of us sets our own objectives, we’ll each have a differing specific definition of success.
Since our objectives often change with time, so may our definition(s).
Since many objectives are not absolute measures, we often progress towards success - rather than achieve it.
Some objectives are absolute: ie - get there, win game, etc.
Some objectives are unmeasured: ie happiness, comfort, etc.
Some objectives are measurable, but remain unmeasured: ie - wealth, safety, etc.

Ralph Waldo Emerson defined success, for himself: "To laugh much; to win respect of intelligent persons and the affections of children; to earn the approbation of honest critics and endure the betrayal of false friends; to appreciate beauty; to find the best in others; to give one's self; to leave the world a little better, whether by a healthy child, a garden patch, or a redeemed social condition.; to have played and laughed with enthusiasm, and sung with exultation; to know even one life has breathed easier because you have lived - this is to have succeeded."

[kushka]

Hey Massachussets has a great policy! They get you for excise tax every year.

But the best part is where you take delivery. If you take delivery in MA, and keep the boat somewhere else for say 10 years. When you bring it back you are liable for the sales tax. They don't care if you paid the sales tax elsewhere you need to pay them anyway. Don't forget the interest and penalties.

[David_Old_Jersey]

Originally Posted by coot

South Carolina has a reputation for having the highest boat tax in the US, because of the personal property tax.

From http://www.sctax.org/publications/propguid99.html
I tried to find a list of the millage rates, but they apparently are set by each county or taxing district. The example in the definition of millage rate shows a rate of 0.256. Using that as an example, that would be a tax of $2688 per $100 000 of fair market value PER YEAR.

Bleedin 'eck ..........and you guys got upset about just tax on tea???

[Kai Nui]

Gord, words to live by.
Sean, Yep I will not admit to the brown cordoroy suite I still have in my closet (oops, I guess I just did)
kushka, such is life. Ma is know for it's odd ball taxes, as are most of the commonweath states. It is the price we pay. The fact of the matter is, I spent a good part of my life looking for the loopholes. Anymore, I just pay the man and spend my time doing what I want. Sure it's painful, but I have found time to have much more value than money, and remember, you can always get more money. Besides, the tax man has much better resouces than I do. If I zig, and he zags, there is always another tax man to catch me in the new direction.
My grandmother was a great example. She never paid income tax. She said, and I understand, had some legal basis to back it up, that if you pay once, you have agreed to pay. If you never pay, you have made no agreement to do so. Not sure if that is acurate, and I would not want the life she had, but it just goes to show that if you are passionate about beating the system, and are willing to commit the time, it can be done.

[hellosailor]

KN-
" If you never pay, you have made no agreement to do so. Not sure if that is acurate, "
Folks who say that get arrested every year. By living as a citizen of the US, you have consented to be governed by it and to abide by all the laws of it, including the tax laws, whether you agree with them or not.
Your opinion may differ--but the folks who run the place say that's the way the law is, and you are free to disagree from the comfort of your cell after they come 'round to get you. If your granny got away with it, she was just lucky enough to come from a time when everyone didn't need an SSN and employers still could get away with paying cash.
You live in a sovereign's territory, you either follow their laws or admit you are a bandit, and take the consequences that come with it.

Coot-
"Using that as an example, that would be a tax of $2688 per $100 000 of fair market value PER YEAR." Had to say if that's a high rate or a low one without looking at someone's entire lifestyle.<G> There are places where you'll be lucky to pay a mere $10,000 per year for a $250,000 house, if you can still find one that cheap. They may call it property tax, or frontage tax, or school tax...but all those Caesers, they still chant "Render Unto".<G>