I am selling my old boat soon. It is a private sale. How do we deal with the sales tax? There is no mention of taxes on the 2001 title. I can see how to transfer ownership and put in a sale price but I am not sure if I need to collect it and send it in with the title transfer or if the new buyer deals with it. Thanks. Mrt.
Who collects the tax when you sell your boat?
It is the law, so why should one person cheat on taxes while the rest of us pay their way? We could debate the reasoning for all taxes and come up with a way around not paying them, but that is called tax evasion, isn’t it?
The DNR needs X amount of dollars to maintain lakes and facilities, so if they don’t get it from one pocket they will just get it from another.
I did learn one thing from this thread and that is, that you don’t have to pay taxes on the trailer. I am just curious why that is? If you buy a new car, you don’t exclude the tires when computing the sales tax.
Put as is on your sales receipt. No one can ever dispute what someone claims that they paid for it. Like someone said, why should they continuously collect a sales tax. Should be for original sale only.
The buyer pays sales tax to the state when he registers the boat. You should write the buyer a bill of sale when he buys it. That will leave you free and clear in a case where he doesn’t register it. If it is still in your name and he causes damage to a person or object, you could be held responsible.
Buyer pays the sales tax and title/ registration fee to the DNR upon purchase. The amount owed is based upon the purchase price that the SELLER writes on the title. I have never written the actual sale price, usually about half. I think it is BS they get to keep collecting sales tax over and over again on the same item. Also the value of the trailer is not included in the price you write on the title.
They are all correct, the buyer pays the tax when he registers the boat.
Just make sure the new owner registers it also
Correct, the buyer pays the tax when they register the boat. I think family is exempt.
When I bought my boat through a private seller I had to pay the tax at the time I went to register it. I don't think you have to do anything with regards to paying tax on it.