MN Sales Tax on Used Boats

  • hans1159
    Champlin, MN
    Posts: 17
    December 15, 2006 at 2:19 pm #1252569

    I searched the forums about this and over the internet, but can’t seem to find a solid answer about taxes and used boats.

    I think I understand that if you buy a used boat/motor/trailer that was MN registered, you will pay tax on the trailer. BUT, one posting mentioned excise tax depending on the value of the package. I can’t find this anywhere in MN DNR website info.

    The other thing I can’t figure out is what happens if you buy a used boat/motor/trailer from out of state from a priviate party. It seems people’s experiences vary in how much they pay to the state.

    For example, I think this is how it works, if I buy a boat from a WI dealer, I will pay WI taxes and then get a refund of WI taxes to MN where I pay MN taxes on the total pkg price.

    If I buy a boat from a private party in WI, am I going to pay tax on the trailer only in MN?

    I know this will open up a bunch of “this happened to me”‘s.

    Thanks,
    Craig

    Bob Bowman
    MN
    Posts: 3544
    December 15, 2006 at 2:27 pm #511619

    Any used boat that you purchase you are going to pay sales tax on the trailer only. This boat would have to be titled in MN for this to apply. I am not sure how the WI deal would shake out. If you purchase a WI boat and plan to have it titled in MN then the sales tax is going to apply to the trailer.

    lindy-joe
    Woodbury, MN
    Posts: 60
    December 15, 2006 at 2:27 pm #511620

    Hi Craig,

    I have bought three boats from private parties in the last three years. They came from Wisconsin, Michigan and South Dakota, and I paid tax only on the trailer. They will ask you how much is the trailer worth when you go to title it, and you pay tax on that. That is only what happened to me.

    Good luck,
    Joe

    shayla
    Posts: 1399
    December 15, 2006 at 2:55 pm #511642

    Quote:

    They will ask you how much is the trailer worth when you go to title it

    …to which you should respond by saying $25!

    BIGURN
    WYKOFF MN
    Posts: 18
    December 15, 2006 at 3:36 pm #511670

    DON’T SEND THE WIFE. MINE SAID MY $100 DOLLAR
    TRAILER WAS WORTH $600

    shayla
    Posts: 1399
    December 15, 2006 at 3:51 pm #511680

    Gotta love her, Big Urn, gotta love her!

    hermy
    Zimmerman, MN
    Posts: 4
    December 15, 2006 at 7:29 pm #511774

    If you buy a used boat from a dealer, you would pay sales tax on the full pruchase price. If you buy from a pivate party, sales tax only on the value of the trailer.

    sgt._rock
    Rochester, MN
    Posts: 2517
    December 16, 2006 at 1:32 am #511885

    When I did mine they said the trailer value was some % of the total package price. I didn’t think it was valued that high, so I printed out the page from the NADA values for the trailer. They accepted that and was less than there % calculation.

    hookem
    Hastings,Minn.
    Posts: 1027
    December 16, 2006 at 3:51 am #511904

    Just bought a used boat package from a private party in late July. paid sales tax on the value of the trailer only.
    They do ask you the trailers value and you basicly can set your own value.

    haywardbound
    New Brighton, MN
    Posts: 1107
    December 16, 2006 at 6:18 am #511937

    Quote:

    If you buy a used boat from a dealer, you would pay sales tax on the full purchase price. If you buy from a private party, sales tax only on the value of the trailer.

    I’m with Hermy on this. The key words are dealer or private party. With a private party sale, you pay the tax at the DMV when you change the (trailer) title over.

    Hermy…Welcome to IDA!

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