If I buy a used boat out of state and bring it into Illinois, does it make a difference if I buy it from a dealer or privitely from a sales tax point?
Sales Taxes
- Thread starter JoeB
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I think it makes more difference
what state the deal is made in. I remember the last boat I bought was in SC because there was a tax break.
what state the deal is made in. I remember the last boat I bought was in SC because there was a tax break.
In some states it depends on how long you owned it
Joe: I believe that in some states it depends on how long you owned it before you bring it into the state. You should check with your local tax collectors to be sure.
Joe: I believe that in some states it depends on how long you owned it before you bring it into the state. You should check with your local tax collectors to be sure.
In Pennsylvania, When you register the boat...
They ask if you paid tax in the state you bought it from. I have never paid tax in another state so I have to pay it in PA before I could register it. I am not sure if they would ask for proof or not. In Pittsburgh, the state tax is 7% (not true all over PA.) if I paid 6% in a different county, I would have to pay the other 1% when registering. r.w.landau
They ask if you paid tax in the state you bought it from. I have never paid tax in another state so I have to pay it in PA before I could register it. I am not sure if they would ask for proof or not. In Pittsburgh, the state tax is 7% (not true all over PA.) if I paid 6% in a different county, I would have to pay the other 1% when registering. r.w.landau
Sales tax
Joe, I don't know about the dealer side of things, but I bought a boat in Minnesota 4 years ago, brought to Illinois, and paid Illinois sales tax on it when I registered it. JIm
Joe, I don't know about the dealer side of things, but I bought a boat in Minnesota 4 years ago, brought to Illinois, and paid Illinois sales tax on it when I registered it. JIm
IL sales tax
Looks like you'll need 6.25% of purchase price. The statute makes no distinction from whom you bought it. Taken fro the IL Sales Tax statute: "The state sales tax in Illinois is assessed on three categories: 1) food and prescription and non-prescription drugs, 2) Vehicles, and 3) other general merchandise. Qualifying food, drug and medical appliance purchases are taxed at a base rate of 1%. Vehicles, or items that require a title and registration are taxed at a base rate of 6.25%. Other general merchandise is taxed at 6.25% and include sales of most tangible personal property including sales of soft drinks, prepared food including food purchased at restaurants, photo processing, prewritten or “canned” computer software, prepaid telephone calling cards and other prepaid telephone arrangements, and repair parts and other items transferred or sold in conjunction with providing a service." You can find more detail through a search on IL Municipal Sales Tax. PS Federal documentation does not eliminate the need to register with most states triggering the tax
Looks like you'll need 6.25% of purchase price. The statute makes no distinction from whom you bought it. Taken fro the IL Sales Tax statute: "The state sales tax in Illinois is assessed on three categories: 1) food and prescription and non-prescription drugs, 2) Vehicles, and 3) other general merchandise. Qualifying food, drug and medical appliance purchases are taxed at a base rate of 1%. Vehicles, or items that require a title and registration are taxed at a base rate of 6.25%. Other general merchandise is taxed at 6.25% and include sales of most tangible personal property including sales of soft drinks, prepared food including food purchased at restaurants, photo processing, prewritten or “canned” computer software, prepaid telephone calling cards and other prepaid telephone arrangements, and repair parts and other items transferred or sold in conjunction with providing a service." You can find more detail through a search on IL Municipal Sales Tax. PS Federal documentation does not eliminate the need to register with most states triggering the tax
register with the coast guatd
if your boat qualifies, you could register it with the CG and not with the IL state. You may see larger boats on the lake w/o state registation; these are federally register boats. Link below.
if your boat qualifies, you could register it with the CG and not with the IL state. You may see larger boats on the lake w/o state registation; these are federally register boats. Link below.
Bought mine
in Wisconsin from a dealer/broker. I paid the Wisconsin sales tax and then when I registered it in Illinois I only paid the difference. Illinois applied the Wisconsin tax towards that amount I would have paid to them.
in Wisconsin from a dealer/broker. I paid the Wisconsin sales tax and then when I registered it in Illinois I only paid the difference. Illinois applied the Wisconsin tax towards that amount I would have paid to them.
Coast Guard registry does not exempt from tax
..Your county likes to check marinas frequently for new boats....eventually the tax man gets you. Be prepared for penalty fees if you didn't pay your taxes. At least that is the case in California.
..Your county likes to check marinas frequently for new boats....eventually the tax man gets you. Be prepared for penalty fees if you didn't pay your taxes. At least that is the case in California.
SALES TAX
Sales Tax is collected only in the state in which the purchase is made. So if you buy in Ohio you pay tax in Ohio, and when you transport to Illinois it's not taxable. ......bob
Sales Tax is collected only in the state in which the purchase is made. So if you buy in Ohio you pay tax in Ohio, and when you transport to Illinois it's not taxable. ......bob
NY State and Taxes
Hello, If you live in New York State and buy a boat, you have to pay NY Sales tax. It doesn't matter where you bought the boat, you still must register it with the NY DMW. Even if your vessel is documented with the Coast Guard, you still must register it with NY, and before you can register it, you need to pay sales tax. I don't know the law in IL, but I'm sure your friendly state government will be happy to help you understand and comply with it. Good luck, Barry
Hello, If you live in New York State and buy a boat, you have to pay NY Sales tax. It doesn't matter where you bought the boat, you still must register it with the NY DMW. Even if your vessel is documented with the Coast Guard, you still must register it with NY, and before you can register it, you need to pay sales tax. I don't know the law in IL, but I'm sure your friendly state government will be happy to help you understand and comply with it. Good luck, Barry
Bobcat
What you said is true only in limited circumstances. Some states will not charge a sales or use tax if the boat is transported out of state or altertnatively, the receiving state will charge the difference between what the selling state charges and their tax rate. As others have recommended, it's best to get an authoritative answer from the taxing authority rather than someone unfamiliar with the two states involved. Joe - if you think the tax is a financial consideration, wait 'till you start doing maintenance and upgrades...
What you said is true only in limited circumstances. Some states will not charge a sales or use tax if the boat is transported out of state or altertnatively, the receiving state will charge the difference between what the selling state charges and their tax rate. As others have recommended, it's best to get an authoritative answer from the taxing authority rather than someone unfamiliar with the two states involved. Joe - if you think the tax is a financial consideration, wait 'till you start doing maintenance and upgrades...
Tax Solution
Buy the boat and document it with the USCG. Keep moving and no state will catch up with you (unless you settle in a single place for a month or more)
Buy the boat and document it with the USCG. Keep moving and no state will catch up with you (unless you settle in a single place for a month or more)
At the time of registering and requesting a title
in your name you will be charged sales tax by any state. There may be states with a lower sales tax than Illinois but the added cost of having to eventually register in Illinois will offset any savings. If you buy from a private party you may be able to claim a lower purchase price than what you actually paid for it but beware that that the tax collectors offices have a valuation book for used boats and may contest a purchase price which is outside parameters.
in your name you will be charged sales tax by any state. There may be states with a lower sales tax than Illinois but the added cost of having to eventually register in Illinois will offset any savings. If you buy from a private party you may be able to claim a lower purchase price than what you actually paid for it but beware that that the tax collectors offices have a valuation book for used boats and may contest a purchase price which is outside parameters.
Thanks for all the help. I am new to this thread and can't believe all the response. You guys are great. Sound like I get to fill out a "Vehicle Use Tax Transaction Return" form. Illinois ALLWAYS get it's taxes. Maintenace, Upgrades, Repairs, you mean it doesn't come with a lifetime warrenty? Thanks again, Can't wait till spring!!
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