Tax implications when crossing state lines

[cyclepro]

Does anyone know the tax implications when transporting a boat by truck from Texas to California. I'd like to avoid any sales taxes in Ca and am willing to keep the boat 'offshore' for a certain period, i.e. I could find a marina in either Portland or Washington State to keep the boat outside of California waters. Local San Francisco sales tax is 8.5%

Does it make a difference if the boat is trucked in stead of sailed?

Thanks for your input.
Jan

[cyclepro]

By the way - this is a used boat

[NormR]

Can't say for sure what California's laws are, but for a lot of states: If you've paid a sales tax in one state, its good in another. Usually sales taxes are paid at the time of purchase or when the boat is first titled. After that you'll be hit with property tax every year.

[tenknots]

Norm's right. If you paid sales tax in any other state, it should apply to the current state. You'll have to make up the difference between what you paid and 8.5%.

If you keep it in Oregon or Washington, they're going to want you to register it, probably within 30-90 days.

It doesn't make any difference how the boat got there, the gov will get their $$.

[cyclepro]

Thanks for your comments - I am trying to avoid any financial surprise with this purchase.

Jan

[patio]

if it's a new to you purchase, made out of calif, 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.

btw: you better hurry as the guvanator wants to close that loop hole.

if you play fast and loose, you might not have to pay the tax where you purchased it.

[otgadventures]

South Carolina seems to have the most SANE boat tax structure, and if you can show a legal address there (? if a mailbox R us counts?) they charge 5% sales tax UP TO $300 tax, that's it!

Anyone know?

Thanks

[coot]

Originally Posted by otgadventures

South Carolina seems to have the most SANE boat tax structure, and if you can show a legal address there (? if a mailbox R us counts?) they charge 5% sales tax UP TO $300 tax, that's it!

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

What is the personal property tax? Personal property tax is collected annually on motor vehicles, recreational vehicles, watercraft (includes boats, wave runners, jet skis, etc.) and airplanes.

The Department of Revenue prepares a manual each year for the county auditor to use in preparing your personal property tax bill. The manual lists each model and make of all available motor vehicles. The value of your vehicle is multiplied by the assessment ratio (10.5% or .105) to determine the assessed value of your vehicle. The millage rate is multiplied by the assessed value of your vehicle to determine the amount of personal property tax you owe.

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.

(100 000 * .105 * .256 = 2688)

In Maryland, you pay a one-time sales tax of 5% ($5000 per $100 000 of value). A federally documented boat pays $10 for a two year tax sticker. A numbered boat pays $24 for one year, or nothing at all if under 16 feet and 7.5 horsepower.

b.t.w. In the US, it doesn't help to have an address in a particular state. The boat is subject to the authority of the "state of principle use". So, for example, if you live in Pennsylvania or Delaware, but keep your boat in Marlyand for more than 6 months, the boat is subject to Maryland laws and taxes.

[mudnut]

Just reading this little thread on tax and cannot believe what Im hearing.NormR says,"After that you'll be hit with property tax every year",And all the other stuff said in reply.Sorry,but,"Home of the free" dosen't sound right in that context.I.m not bagging the states,It just all sounds like highway robbery for anyone to pay a tax on something they own year after year.Q"Am I missing something here?"Mudnut.

It is a tax, formerly refered to as "Luxury tax". They have since come up with more creative names, but the idea is if you can afford luxuries, you should be able to afford to contribute more to the government.

[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.

Taxes are just one of those things better to be avoided if possible. But, never completely possible.
And, I got past my brain fart, they call it an "Unsecured property tax" now. We even get taxed on the mud under the slip. But, it is all part of the game.

[Charlie]

Kalifornia is about the worst for taxes. My wife and I lived in MT for 10 years then moved back to CA when we had kids. The Kalifornia govt wrote us a letter saying that b/c my wife had a house in Kalifornia and it had a $xxx,xxx mortgage on it she had to have made $xx,xxx dollars per year and since she had not filed a Kalifornia tax return she owed $xx,xxx in taxes. We wrote them a letter and told them that the admirals ex-husband had recieved the house in a divorce settlement. They said that was not good enough and proceeded to garnish her wages. It took the threat of a lawsuit to get them to back off from a position that had no basis in reality anyway. That's our state for you. And of course big corporations can get away w/o paying anything in taxes.

[mudnut]

Well thats something ya never hear of in OZ,The ex husband getting the HOUSE in a divorce settelment!It's more like-She got the house me ute 65% of my wages and I got the dog.But Iv'e ajusted well to living down by the creek in a 2-man tent!!Mudnut.

[coot]

Originally Posted by mudnut

Just reading this little thread on tax and cannot believe what Im hearing.NormR says,"After that you'll be hit with property tax every year",And all the other stuff said in reply.Sorry,but,"Home of the free" dosen't sound right in that context.I.m not bagging the states,It just all sounds like highway robbery for anyone to pay a tax on something they own year after year.Q"Am I missing something here?"Mudnut.

In general, I think that property tax is a stupid way to do things for the reasons you cite. You buy something, then you have to keep paying for it again and again -- or, as sometimes happens, you have to sell it for money to pay the tax...

Property tax is pretty common in the US. It is set by the state, and sometimes by some more-local government within the state. In some states, it only applies to real estate (i.e. land and buildings). In others, it applies to physical objects like cars, boats, computers, whatever. Since it is set by state or local government, it varies a lot from place to place.

I've heard that property tax dates back to a time when most real estate was involved in a money-making venture. For example, the state wanted to collect tax on the 200 acre tobacco farm because the farmer was making money and the government needed some to operate. (Of course, I think they also taxed the tobacco...) I have no idea if this is true or not. I'm just as likely to believe that it came from "we need to tax something".

Do you not have property tax of any kind in Australia?