Confusion About 'Use Tax' and 'Sales Tax'

[Doodles]

Originally Posted by evm1024

Yes true. Never stated otherwise. They did try to collect taxes and you were able to show that you had never been to TX with the boat.

Just how did TX get info on your out of country boat? And if you had ever visited TX with the boat even for a few hours.....

My point is that the CG documentation center data is accessable to State Tax people and that the tax people do check the Documentation databases. The bigger point is do not try to evade taxes.

Regarrrtds

So true and good advice. We had the same experience as Judy but with Maine. We purchased a boat in Virginia (where we lived and slipped the boat) that already had a hailing port of Maine which we decided to keep. The boat was a documented boat and it wasn't long before we got a letter from Maine wanting some $$. I didn't have to supply any receipts, just a letter stating that the boat had never been in Maine under my ownership and I provided evidence that I had paid sales/use tax to Virginia. Maine wrote back and said ... "no problem, have a nice day."

[Kettlewell]

I was unable to locate specific information on the State of New York's website, anyone know of better links? Another question, can your boat be your legal residence if it's moving all the time or does a US citizen have to have a physical address?

Here's New York State information on the obligation to pay sales and use tax. Basically, in NY if you "use" the boat at all in New York they want the sales or use tax, even if it is only for a brief period. If you purchase it from a dealer they will collect the sales tax, or at least they should. If you purchase it from an individual I believe New York expects you to pay the sales or use tax directly on a form that you must file. I'm pretty sure as long as the sale and delivery of the boat takes place in New York State they expect you to pay the sales tax, no matter where you are from, or no matter how long the boat stays in New York. I would check with the tax folks to be sure. Here is their form for claiming an exemption from the sales tax.