Our offer for a boat in NY state has been accepted. We will be bringing the boat to Ontario, Canada. We've heard various stories regarding the NY sales tax. We've been told that if the boat is not removed from the US registry we will have to pay US tax on the purchase. Other have told us that once the boat changes ownership and is taken out of the US, we shouldn't worry about it as the boat will be registered in Canada. Does anyone have the proper inf. on this?
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NY Sales Tax
The only way NY will get to collect sales tax from you is if you register the boat in NY state. Sales tax is paid at registration. If you are buying from a NY dealer he is obligated to collect it from you only if you are a NY state resident.
The only way NY will get to collect sales tax from you is if you register the boat in NY state. Sales tax is paid at registration. If you are buying from a NY dealer he is obligated to collect it from you only if you are a NY state resident.
As Alan and NYSail have said,
NY collects its sales tax when you register the boat. The only excise you have to worry about is Canadian, about which I know nothing! Enjoy the boat!
NY collects its sales tax when you register the boat. The only excise you have to worry about is Canadian, about which I know nothing! Enjoy the boat!
Thanks for the Inf.
That's good news. Since it is a US boat we are subject to 14% tax, and that's plenty.
That's good news. Since it is a US boat we are subject to 14% tax, and that's plenty.
heresay
All the advice you get on this or any forum is heresay. Well intentioned but still heresay. You should go to the NY state website and find the people in the right department and call them to make sure you do this properly. You never know what sort of details might get missed. If you don't do it right, they can put a tax lien on the boat and I believe that can cross borders. Even if a tax lien can't, you would never be able to return to the US for any reason without fear of getting the boat impounded. Free advice is worth what you pay for it. States are getting very aggressive about collecting anywhere they can. Many states take the attitude of 'tough, prove it' even if you are right. Spending time going through the process of getting a tax lien overturned is a nightmare.
All the advice you get on this or any forum is heresay. Well intentioned but still heresay. You should go to the NY state website and find the people in the right department and call them to make sure you do this properly. You never know what sort of details might get missed. If you don't do it right, they can put a tax lien on the boat and I believe that can cross borders. Even if a tax lien can't, you would never be able to return to the US for any reason without fear of getting the boat impounded. Free advice is worth what you pay for it. States are getting very aggressive about collecting anywhere they can. Many states take the attitude of 'tough, prove it' even if you are right. Spending time going through the process of getting a tax lien overturned is a nightmare.
additionally
Read some of the twists and turns of Maryland tax law here... http://www.boatinglaw.com/document.cfm/articles
Read some of the twists and turns of Maryland tax law here... http://www.boatinglaw.com/document.cfm/articles
TAX
Generally what NY Sail, alan, and Chris said is true. You will only be taxed once on a boat. When I bought a new boat in 1993 in Washington (8.5% sales tax) I lived in Idaho, and moved the boat to Oregon (0% sales tax), I paid no sales tax to register the boat. When I moved to Washington, and moved the boat to Washington in 1999, I paid 8.5% "Use Tax" (sales tax) on the value of the boat at that time. This is generally true everywhere, however local governments are getting creative in their quest for spending money so there could be exceptions.
Generally what NY Sail, alan, and Chris said is true. You will only be taxed once on a boat. When I bought a new boat in 1993 in Washington (8.5% sales tax) I lived in Idaho, and moved the boat to Oregon (0% sales tax), I paid no sales tax to register the boat. When I moved to Washington, and moved the boat to Washington in 1999, I paid 8.5% "Use Tax" (sales tax) on the value of the boat at that time. This is generally true everywhere, however local governments are getting creative in their quest for spending money so there could be exceptions.
Brought back 2 boats to Canada from the USA
One was bought in NY state and the other in MD. In both cases I dealt with a broker and advised him that the boats were to be taken out of state after purchase. In both cases I was given some time to get the boats out of state (MD was 10 days). Transported or sailed back did not matter. In fact I sailed back the one bought in NY and cleared and registered the boat at Canadian customs. Since both boats were American made, there was no duty to be paid coming into Canada. But I did have to pay the GST and PST on the boats. Canadian Customs uses the "red book" for boat value, unless you can proove a different value with a dealer's invoice or a documented and signed professionnal surveyor's assessment. Since you are buying in the USA, once they have a value in US $, Canadian Customs will convert it in Canadian currency at the rate of the day you are clearing the boat into Canada. That is when they will apply the GST and PST, which you can pay in cash, certified check to the Receiver General or credit card. This might be heresay because it happened a few years back so the advice of checking with NY Tax department and Canadian customs still has merits. Good luck with the new boat.
One was bought in NY state and the other in MD. In both cases I dealt with a broker and advised him that the boats were to be taken out of state after purchase. In both cases I was given some time to get the boats out of state (MD was 10 days). Transported or sailed back did not matter. In fact I sailed back the one bought in NY and cleared and registered the boat at Canadian customs. Since both boats were American made, there was no duty to be paid coming into Canada. But I did have to pay the GST and PST on the boats. Canadian Customs uses the "red book" for boat value, unless you can proove a different value with a dealer's invoice or a documented and signed professionnal surveyor's assessment. Since you are buying in the USA, once they have a value in US $, Canadian Customs will convert it in Canadian currency at the rate of the day you are clearing the boat into Canada. That is when they will apply the GST and PST, which you can pay in cash, certified check to the Receiver General or credit card. This might be heresay because it happened a few years back so the advice of checking with NY Tax department and Canadian customs still has merits. Good luck with the new boat.
NY sales tax
I know from personal experience that a New york dealer has to collect NY sales tax on a boat he sells in New York even if you are a nonresident if you own a residence in New York, regardless of where registered. I am a New Jersey resident who owns a place in new York and that difference was worth quite a few boat bucks due to the 2+ percent difference in sales tax.
I know from personal experience that a New york dealer has to collect NY sales tax on a boat he sells in New York even if you are a nonresident if you own a residence in New York, regardless of where registered. I am a New Jersey resident who owns a place in new York and that difference was worth quite a few boat bucks due to the 2+ percent difference in sales tax.
red book values...?
Also considering buying a US boat. Does anyone have a link for the "red Book" values mentioned above? Thanks Mike
Also considering buying a US boat. Does anyone have a link for the "red Book" values mentioned above? Thanks Mike
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