Thread: Sales tax
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Old 09-22-2017, 02:11 PM   #36
hfoster
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City: Cleveland
Vessel Name: Irishland
Vessel Model: Chris Craft Corinthian 380
Join Date: Mar 2012
Posts: 587
Quote:
Originally Posted by psneeld View Post
In my experience the most a second state tags you for is the difference in the 2 amounts of sales tax.

If the statevyou bought in charges 5% , but your home state where you register the boat charges 7%, you cough up the difference.

I think some states forgive the difference if the boat has been kept out for a certain length of time.

Is this what you were refering to? I havent heard of a state looking for tax beyond what they would charge just in that state.
From what my tax attorney tells me if you buy a vessel in one state that has sales tax and if your state has a sales tax, then you pay the sales tax to your state. Then your state forwards a % of what you paid in sales tax to the state you bought the vessel in.

Both states cannot charge their full sales tax on the same item that you bought. It would be double taxations. Thus the state you live charges the sale tax (If your state has sale tax.)


Where I live the sales tax is 6.5 % on a new vessel and 5.75% 0n a used vessel. If I buy a vessel in a state that has a 7% sale tax, Ohio will send the other state a % of sale tax you paid. That is the way it work in Ohio.

As far as the other state coming after you for the difference? I guess the could. However I believe it would fall under double tax taxation due to the fact that you pay the full sales tax in your state. With that said, it is always a good idea to chat with a tax attorney when buy a vessel out of your state.

Cheers.

H.
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