Boat tax question and out of state purchase

Okay, I know some of the MN rules. Buy from an individual, no tax on the boat. Buy from a dealer, yes on sales tax. What if you buy from an out of state dealer?

Came across what could be a deal in South Dakota. Can’t figure out if I would pay SD sales tax, MN sales tax, or neither.

You would pay SD sale tax and get hit with registration cost of the trailer back in Minnesota.

Does SD have a sales tax? For some reason, I didn’t think they did?

But yes, in MN we have the screwball deal where you get hit for sales tax only on the part of the boat that touches a road–the trailer. So when you register the boat and trailer, you will be asked to value ONLY the trailer and that’s what you’ll get hit for tax on.

And no, you can’t say the trailer has no value without the boat or lowball the trailer value too badly because they’ve got these gambits all figured out and they can value it other ways as well.

Grouse

http://dor.sd.gov/Taxes/Business_Taxes/Publications/PDFs/boats0713.pdf

Thanks for the link. Looks like it would be 3% on the boat. Not terrible. I may have to call the dealer to see if I’m still interested.

I live in WI and purchased a boat in SD last fall. I did not pay any sales tax. The dealership told me that I pay the sales tax in my home state.

I just double checked my sales receipt from the dealership to confirm this.

Private party sale it will be the regulations of the state you are registering it to. So Minnesota resident will pay the normal transfer fee on the boat then tax/transfer fee on the trailer. At least this is how it was when I bought a boat from Wisconsin and Nebraska. Different story with a dealer purchase.

Thanks guys, I’m almost ready to take the plunge.

Talked to the dealer this morning and sound like something that will work for me. Just checking on a couple other things(see DC charging thread) and will probably commit by the end of the day.