If I buy a used boat from out state (Iowa or Illinois) and register it in MN will there be sales tax collected by the license center? I talked to one dealer in Illinois and he said that he would not have any tax on a boat sold to a MN res. I realize the trailer and boat are separate entities so you can speak to either if you have knowledge. Thx in advance.
Buying from a private party or a dealer?
I bought a boat in Illinois and they collected tax when I registered it in Minnesota.
No tax on the boat from private party. They do tax the trailer.
You will pay. Minnesota don’t miss much when it comes to confiscating you’re money. You can’t tell them you paid $5 for it either I think they go by book value now to calculate taxes unless you bring in a bill of sale to prove what you paid.
If you buy from a dealer in or out of state Mn will charge you sales tax when you register it. I found that out when I sold my old boat to a friend and bought my new one. I paid and he didn’t.
Out of state dealers are supposed to collect the tax, if they don’t you will pay when you register in MN. If the out of state dealers makes a mistake and charges to much you don’t get it back from MN without filling out endless forms and spending half your life on hold trying to talk to someone. Ok so maybe not half my life but at the time it sure seemed like it.
Bought used lund last year from Iowa form a private party registered it in the land of 10,000 taxes no sales tax on boat but had to pay to get current registion. And then you pay for sales tax on trailer.
Purchase from a private party, you pay tax only on the value of the trailer. You must also transfer or renew the registration on the boat itself.
Purchase from a dealer, you pay tax on everything.
Grouse
And if you are doing it now, good luck on getting quick, accurate information from DNR or DMV.
I purchased a boat from private party, out of state, and it has been a disaster trying to get boat and trailer licensed. Offices are closed so no face to face discussions. I have been sent the incorrect forms twice. Make sure the bill of sale itemized the boat, motor and trailer, of they will tax you the full price for the trailer tax. And now with “shelter in place”, licensing is not a essential need, so you will have to wait 2 weeks to apply.
That it Gov’t for you…. can’t understand the mass of people that want more Gov’t controlled services….
When I purchased my boat in Lacrosse last fall I paid Wisc. tax to the dealer. Then when registering it in MN paid the additional tax that MN wanted. Mine was a new boat.
TheFamousGrouse is correct.
A couple of points about buying used boats/trailers.
– Some trailers have at a title. I have no idea why this is/was, but some trailers actually did come with a title and if the owner registered it as titled, you’re stuck with that and you need to have the title from the previous owner. The DMV will be able to tell you based on the VIN if the trailer was titled. It’s rare, but it’s a huge hassle if it happens to you and the previous owner lost the title.
– Even with the so-called “lifetime” trailer registration in MN, you STILL need to transfer that registration to your name. It’s only “lifetime” registration as long as the same guy owns it.
Finally, never, never buy a boat that has a security interest listed on the title or registration unless the seller has the loan payoff notice from the lender. No, you can’t just take their word for it and getting another copy of the release letter can be a NIGHTMARE. Just walk away until the seller gets his paperwork together.
Grouse
One of the tricks that I have heard regarding paying sales tax on a boat is buying the boat and motors separately. Apparently when you register only the boat is taxed?
One of the tricks that I have heard regarding paying sales tax on a boat is buying the boat and motors separately. Apparently when you register only the boat is taxed?
How would you get by not paying tax on a new motor? (Unless it’s literally straight up cash under the table?)
<div class=”d4p-bbt-quote-title”>SuperDave1959 wrote:</div>
One of the tricks that I have heard regarding paying sales tax on a boat is buying the boat and motors separately. Apparently when you register only the boat is taxed?How would you get by not paying tax on a new motor? (Unless it’s literally straight up cash under the table?)
Maybe I got that wrong and the registration fee based on value?
As for the Lifetime trailer… If your trailer is 3,000 pounds gross vehicle weight or under you get the Lifetime tabs. If not, you get to buy tabs every year. I didn’t have that figured out till I noticed my tabs were expired. I had assumed they were Lifetime.
One of the tricks that I have heard regarding paying sales tax on a boat is buying the boat and motors separately. Apparently when you register only the boat is taxed?
In what state? In MN, if buying new you pay sales tax on the boat, motor, and trailer, so separating out the purchase would do no good at all.
If buying used in MN, you only pay tax on the part that hits the road–the trailer.
Grouse
How is this still such pain. Looking at buying a used boat now in MN and just trying to find details on how/where to pay tax and how to transfer the title is crazy.
Would be nice if there was just a detailed writeup from the DMV and/or the DNR.
You don’t pay tax on private party used-boat sales in Mn. Just on the trailer. You transfer a title by giving the previous title to the new owner, they fill out the bottom portion (or back?) and they take it into the DMV? A Bill of Sale is sometimes used to create a Title. That’s how it usually works for me. Been thru this headache a few times.
Assuming you do the title transfer before the license transfer with the dnr?
Can you drive the boat before doing either of these things?
Assuming you do the title transfer before the license transfer with the dnr?
Can you drive the boat before doing either of these things?
Unsure of what a license transfer is with the DNR. What are the specs of your boat? Once you transfer title, you’ll get a temp registration sticker/paperwork. That’s all ya need to be “legal”, whatever that means in this state.
I would go into your DMV and have them help you, usually they will walk ya thru what you need. The DNR is usually not in the equation.
It is done all at once.Go to the dmv with the newly purchased boats title/bill of sale (some boats dont have a title) and tell them you bought that boat and need to get the title/registration in your name.Did it a month ago it took less than ten minutes and costed around 50$ for new registration and title transfer.
How is this still such pain. Looking at buying a used boat now in MN and just trying to find details on how/where to pay tax and how to transfer the title is crazy.
Would be nice if there was just a detailed writeup from the DMV and/or the DNR.[/quote}
This isn’t as difficult as you’re thinking. Almost any motor vehicles registration office (where you go to get your drvs license and tabs) can do the whole process.
As I stated before, in MN on a USED boat sale, you have to pay tax on the value of the part that is used on the road–the trailer. So come prepared with a resonable estimate of the value of the trailer. Be reasonable because they can pull out the book on you and compare to other trailer values.
You will need to bring:
1. The title to the boat AND the title to the trailer if it has one. See my above comment.
If the title lists a security interest listed, you MUST have the payoff letter from the sell that shows the loan to the lender was paid off. Must, must, must. There is NO way around this. See my above comments, this is a major nightmare if you buy a boat with a security interest listed and don’t get the payoff documentation.
2. The DNR registration card.
3. A bill of sale signed by the previous owner with a legible name that matches the name on the title and registration.
With these documents, the DMV can transfer the boat title, the trailer title (if necessary), the trailer license, AND finally the DNR registration. BTW there is a fee for the registration transfer.
It sounds complicated, but if you have the above documentation in order, it all goes smoothly 99% of the time.
This isn’t as difficult as you’re thinking.
Agreed, it’s not that bad. The your local DMV will take care of the title transfer and registration.
One note, if you’ve taken out a loan, make sure you add the lien holder to both the boat and trailer titles.
Thanks for all the info. Plan right now is to purchase a 2050ls reata. Sounds like it shouldnt be too bad.
Of course the wife want to take it out before we even get it home, but I do not think that is a good idea until we do the transfer at the dmv.
Of course the wife want to take it out before we even get it home, but I do not think that is a good idea until we do the transfer at the dmv.
I wouldn’t worry about it. I bought a boat from WI in August of 2020. Due to COVID shutdowns, I couldn’t even get an appointment at the DMV to take care of the transfer until late September. The boat was in storage well before I got the title transfer and MN registration taken care of, and you can bet I used it quite a bit in the mean time. I would just keep a copy of the bill of sale on hand.
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