Paying Sales Tax on used boats?

  • eyeguide
    Prior Lake
    Posts: 274
    #1237831

    If you buy a used boat in a different state and bring it back to Minnesota are/should you pay sales tax? I am considering buying a boat in Wisconsin, but the sales tax issue could raise the price quite a bit!

    Dean Marshall
    Chippewa Falls WI /Ramsey MN
    Posts: 5854
    #853086

    You pay tax on where you reside. Good luck boat buying!

    85lund
    Menomonie, WI
    Posts: 2317
    #853089

    If it comes with Green Bay logo stickers or magnets it is worth the extra money

    Sorry I couldn’t resist

    Trev
    Battle Lake, MN
    Posts: 965
    #853090

    Should just have to pay it on the trailer. But, be prepared to show proof that sales tax had been paid on the boat in WS. I had to do that when I bought a boat from ND a couple years ago.

    Randy Wieland
    Lebanon. WI
    Posts: 13475
    #853095

    If your registration is anything like WI, get a seperate receipt for each the boat, motor, and trailer. WI requires you to register the boat

    eyeguide
    Prior Lake
    Posts: 274
    #853097

    This seems like BS! How many times can tax be paid on one item?

    tom_gursky
    Michigan's Upper Peninsula(Iron Mountain)
    Posts: 4751
    #853102

    Yessir…everytime a boat, cycle, or vehicle is sold you pay tax over and over and over again…

    iskitofish
    Posts: 58
    #853109

    if you pay the sales tax in wi. you don’t have to pay it in MN.

    jon_jordan
    St. Paul, Mn
    Posts: 10908
    #853115

    If you buy from a private party in Wi, you only pay sales tax on the estimated value of the trailer in Mn.

    -J.

    jd318
    NE Nebraska
    Posts: 757
    #853146

    Sales tax varies from state to state. Sales tax is what is called a “transactional tax.” The tax is paid on the transaction rather than on the item. Each time the item is sold, the transaction is taxed. Having said that, some transactions are non-taxable, depending on the state. For example, some states may only tax the trailer, etc.

    In Nebraska, a boat and motor together is considered a vehicle and the sales tax is paid when you register it at your local courthouse. If you buy a boat or a motor separately, you pay sales tax where you take possession (dealership for example) If it is a private party, you are supposed to file a Use Tax Return, which is the equivalent to Sales Tax.

    If you do pay sales tax to another state and the transaction is taxable in your state, you should be able to get credit for the taxes paid with proper documentation. The 2 states will then hash it out.

    JD

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