Lesson learned boat shopping

Some folks may have seen my other thread on my boat being totaled and dealing with the “joy” of that process. I have started searching for a new boat and have found a couple that fit the bill in terms of price and what I want.

The lesson for me was in dealing with the details about purchasing in another state. I live in WI and just outside the people’s republic of Madison and as Madison goes so goes Dane County. For this privilege we pay a 1/2 percent more sales tax. So for me it’s 5.5% if I buy here in WI. One of the boats I am interested in is in MN where the sales tax is higher. If buying from a dealer you pay the sales tax of the state they do business in. That means I pay a percent and a bit more additional sales tax.

Depending on the size of the purchase that can be some serious money. In my case the folks in MN have a sharp enough pencil that its still worth buying there.

I thought I would point this out for others, it was something I learned maybe it can help someone else be a bit more informed going in.

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Some folks may have seen my other thread on my boat being totaled and dealing with the “joy” of that process. I have started searching for a new boat and have found a couple that fit the bill in terms of price and what I want.

The lesson for me was in dealing with the details about purchasing in another state. I live in WI and just outside the people’s republic of Madison and as Madison goes so goes Dane County. For this privilege we pay a 1/2 percent more sales tax. So for me it’s 5.5% if I buy here in WI. One of the boats I am interested in is in MN where the sales tax is higher. If buying from a dealer you pay the sales tax of the state they do business in. That means I pay a percent and a bit more additional sales tax.

Depending on the size of the purchase that can be some serious money. In my case the folks in MN have a sharp enough pencil that its still worth buying there.

I thought I would point this out for others, it was something I learned maybe it can help someone else be a bit more informed going in.

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Buy used in MN and you will only pay sales tax on the trailer If you can find a boat that is a year or two old, well taken care of, you save yourself a ton of $$$ in sales tax.
Good luck in your search for a new ride!

When he goes to license that boat WI will want their tax then so it won’t save anything to buy used and WI doesn’t care about the trailer until it is over 3000lbs. GVWR.

I would check with a tax advisor on the out of state sales tax. This may be long gone, but I thought you could deduct the sales tax paid to other states???

I work at a motorcycle dealership. We never charge sales tax to an out of state buyer. New or used – no tax. Why would boats be any different?

I need to double check on this but in Nebraska when you register a new boat you pay your sales tax at that time. This would mean that when I buy my new boat in a couple of weeks at the Skeeter Boat Center in Wisconsin, I will bring it home and pay the sales tax and registration here in Nebraska and I pay nothing in Wisconsin.

I guarentee you I’m not paying it twice!!

You pay as per where you live when you register your purchase.

Dean according to the DNR folks in MN and WI if I buy from a Dealer in MN I have to pay MN tax. When I register in WI I have to show them that I paid the taxes in MN or I have to pay WI tax.

Department of Revenue in WI and MN both confirmed what I heard from the DNR.

If I remember right. One way around the tax issue Mn. Wi. is the dealer delivers the boat across the state line then you would pay only Wi. tax. Other wise like you said Mn. Wi. tax is reciprical. You won`t pay twice.