When Use Tax paid buying boat california

[arch007]

Thanks in advance.

I am confused.

The Equalization Board says use tax is due in the month you buy the boat from a private party.

Elsewhere on the website it says the use tax is due when you execute the transfer of title at the DMV.

Is the use tax charged when you execute the transfer of title at the DMV or
do you get a bill for the use tax later that month ?

Thanks,

archie

[Calif.Ted]

In California, on a DMV registered boat you must pay use at the time you transfer title at the DMV. For a documented boat you must pay tax to BOE, they don't know about the sale so they can't send you a bill. They will eventually catch up with you and bill you with interest.

[Jglinco]

Paid to DMV at time of title transfer .

[Flyingriki]

What is the difference between sales tax and use tax?
In California, transfers of tangible personal property for a consideration (sales and purchases) are subject to sales tax or use tax unless the law provides an exception (that is, an exemption or exclusion). Although the rates are generally the same, sales tax is imposed on the retailer for the privilege of selling tangible personal property in this state. The retailer may collect reimbursement from their customer if the contract of sale so provides. Although this is usually invoiced as "sales tax," it is actually sales tax reimbursement. Whether or not the retailer collects reimbursement, the retailer is liable for the tax due.
Use tax is generally imposed on the purchaser of tangible personal property that is used, consumed, or stored in this state. Sales of vehicles, vessels, and aircraft by licensed dealers are usually subject to sales tax, for which sales tax reimbursement is collected at the time of purchase. Use tax applies to the cost of vehicles, vessels, and aircraft purchased from non-dealers (for example, private parties) or from outside California for use in this state. Use tax also applies to most leases of tangible personal property. Private party sales or brokered transactions are normally subject to use tax. If the first use of the property occurs in California, use tax may apply even if the purchaser is not a resident of the state. The sales and use tax are "mutually exclusive," which means that either sales tax or use tax applies to a single transaction, but not both.
https://www.boe.ca.gov/sutax/faqtrans.htm

[zeehag]

the "use " tax is sales tax. it is due when you dmv a boat or the board will bill you for a documented boat.
state registered anything pay sales tax on issue of title. federally documented vessels are billed and they will find you.

[NorthCoastJoe]

They are two taxes, one is sales tax paid at DMV.

The other is paid to the county that the boat is stored in, your home county, every year. The county tax man will try to charge you the most possible, every year.

Hope this gives you an idea of how the counties try to soak boat owners in California.

[Diesel Bill]

Just got my use tax bill in the mail Saturday. L.A. is billing me for a value of $48,000.
I only paid $27,900. and have bill of sale notarized. Sales tax paid on sale price of $27,900. to tax board a couple of months ago with no problems. I checked boat values and came in for $29,000. to $34,000. for my boat. I'll contest the value and try to get it reduced. Dealing with Los Angeles bureaucrats The boat was beat pretty bad when I picked it up. I don't think it gained 20 grand in value for the little work I've done.

[markpierce]

With sales tax, the seller pays the tax to the state (and had usually collected same from the buyer), while use tax is paid by the purchaser to the state directly when the seller isn't a business or the business isn't in the purchaser's state.

[NorthCoastJoe]

I think all counties do that. I bought a boat for $100, no sails, no motor, holes and cracks in the hull. They valued it at over $5000. I told them if they can sell it for $5000 they can keep half. I have no idea if they look at the DMV records or live in the real world.

[Training Wheels]

Originally Posted by Diesel Bill

Just got my use tax bill in the mail Saturday. L.A. is billing me for a value of $48,000.
I only paid $27,900. and have bill of sale notarized. Sales tax paid on sale price of $27,900. to tax board a couple of months ago with no problems. I checked boat values and came in for $29,000. to $34,000. for my boat. I'll contest the value and try to get it reduced. Dealing with Los Angeles bureaucrats The boat was beat pretty bad when I picked it up. I don't think it gained 20 grand in value for the little work I've done.

Good luck!

[timoko]

Question: Is the 'USE FEE' paid once, at time of sale or is it a recurring yearly expense?

Trying to find an answer on the Board of Equalization site is challenging.

[Diesel Bill]

Originally Posted by timoko

Question: Is the 'USE FEE' paid once, at time of sale or is it a recurring yearly expense?

Trying to find an answer on the Board of Equalization site is challenging.

Sales tax is a one time thing when you buy the boat. The use tax is every year like property tax. It's to the taxing authority's benefit to value the boat at the highest level to get more money. What a scam. I worked 50 plus years to have a little pleasure in my old age and these bastards take the fun right out of it.

[Diesel Bill]

I don't want to sound like I'm ungrateful. I know how lucky I am to be able to afford boating at all. With almost a thousand a month slip fees and now I just found out I have to pay L.A. a fee for property tax on the slip which they own and I'm renting. Sounds like they want to tax the water and air pretty soon. Oh and now Ca. is coming out with a boat operators licence. All are required to obtain (purchase) one. Another $10.00 fee.
I don't think it will ever end.
Rant over.

[Calif.Ted]

Actually, what you pay at time of purchase is "use tax" to the state at DMV or to BOE at same rate as "sales tax", almost 10%. The owner on Jan.1 of a boat in Calif. is liable for property tax to the county at rate of about 1% annually.
When my boat was assessed at $10,000 more then I paid I was told that they used the NADA value, not reality.

[Flyingriki]

Originally Posted by timoko

Question: Is the 'USE FEE' paid once, at time of sale or is it a recurring yearly expense?

Trying to find an answer on the Board of Equalization site is challenging.

What in post #4 doesn't answer your question?