Similar situation here in WA state. I knew I would have to register my DIY
boat before I could document it and the Dept of Licensing had given me a
flyer several years earlier. It stated that I would need to provide the
reciepts for material and equipment at the time of registration so they
could establish the value and assess the tax on any portion of the value
that hadn't already been taxed.

I had a filing cabinet full of reciepts, both from WA and out of state
purchases, some taxed some not taxed. Prior to submitting these, I inquired
about how they wanted me to present these reciepts and was then told to just
bring in copies of the reciepts for the major equipment (engine,etc).

However, for some reason, I made copies of all my reciepts. I went to the
DOL office with all of these. They were a bit surprised but excepted them. I
had even done adding machine tapes with the material totals and sales tax
totals. Then, since the boat wasn't finished or fully outfitted, we agreed
on a modest value declaration. (I argued that the sales tax would be paid on
any subsequent material/equipment.) From this declared value they subtacted
the total of all the reciepts and I paid the tax on the difference.

What makes this strange is that I paid tax on my labor and I paid tax at a
rate of 9.5% (the current rate) rather than 8.5% that was in effect the
previous years. (Even though I had paid sales tax on the material, they
charge me 9.5% on the overall declared value of the boat and subtacted the
total sales tax paid previously at 8.5%.)

Had I not provided all of those reciepts, I would have paid a much more
using their methods (major equip, etc.).

I could have registered the boat in early stage of building, when I
purchased the bare fiberglass hull. But then the boat would have been
registered as built in 1995 rather than 2002. (as if model year has much to
do with a DIY boat)

I won't say what I paid in sales tax, but it would have paid for a new main.


--
My opinion and experience. FWIW

Steve
s/v Good Intentions

"Steve" lifted the trapdoor, peered around and wrote:

I won't say what I paid in sales tax, but it would have paid for a new main.

If I cook myself a meal in your State, how much tax do I need to pay before
it is eaten?

You laugh. My father was subjected to a TCMP IRS audit years ago. They asked
a lot of stupid questions, including one about our cattle. My dad told him
we slaughtered two each year for meat. The auditor's face lit up... "oh, you
didn't report that as income". Seems that if you buy a cow and then later
eat it, you have to report the retail value of the butchered meat less the
cost of the cow as income. Geez.

After that, two cows yearly were killed and eaten by wolves, making them tax
write-offs. Funny how people react, isn't it?

"steveb" wrote in message
...
"Steve" lifted the trapdoor, peered around and wrote:

I won't say what I paid in sales tax, but it would have paid for a new
main.

If I cook myself a meal in your State, how much tax do I need to pay
before
it is eaten?

See, there is a justification for restoring wolves to the wild after all! A
tax advantage, no less :-)

Damn glad you mentioned that one. We got a real mean and hungry pack of
coyotes lurking about for sure!

Wonder when us hunters will start receivng a tax bill for the annual deer
harvest?

Fred

"Keith" wrote in message
...
You laugh. My father was subjected to a TCMP IRS audit years ago. They
asked
a lot of stupid questions, including one about our cattle. My dad told him
we slaughtered two each year for meat. The auditor's face lit up... "oh,
you
didn't report that as income". Seems that if you buy a cow and then later
eat it, you have to report the retail value of the butchered meat less the
cost of the cow as income. Geez.

After that, two cows yearly were killed and eaten by wolves, making them
tax
write-offs. Funny how people react, isn't it?

"steveb" wrote in message
...
"Steve" lifted the trapdoor, peered around and wrote:

I won't say what I paid in sales tax, but it would have paid for a new
main.

If I cook myself a meal in your State, how much tax do I need to pay
before
it is eaten?

Keith wrote:

You laugh. My father was subjected to a TCMP IRS audit years ago. They asked
a lot of stupid questions, including one about our cattle. My dad told him
we slaughtered two each year for meat. The auditor's face lit up... "oh, you
didn't report that as income". Seems that if you buy a cow and then later
eat it, you have to report the retail value of the butchered meat less the
cost of the cow as income. Geez.

After that, two cows yearly were killed and eaten by wolves, making them tax
write-offs. Funny how people react, isn't it?

"steveb" wrote in message
...
"Steve" lifted the trapdoor, peered around and wrote:

I won't say what I paid in sales tax, but it would have paid for a new
main.

If I cook myself a meal in your State, how much tax do I need to pay
before
it is eaten?


I love it! Screw the thugs. Look out for the wolf habitat
protectors! Ever hear of ducks unlimited?

Duck takes on a whole new meaning.

--
Terry K - My email address is MY PROPERTY, and is protected by
copyright legislation. Permission to reproduce it is
specifically denied for mass mailing and unrequested
solicitations. Reproduction or conveyance for any unauthorised
purpose is THEFT and PLAGIARISM. Abuse is Invasion of privacy
and harassment. Abusers may be prosecuted. -This notice footer
released to public domain. Spamspoof salad by spamchock -
SofDevCo

Wow! I just found the Washington state boat registration page. You do
have to pay based on the market value. That seems a bit unfair. If
they charged every do-it yourselfer for his own labor there would be a
riot at the state capitol.

Just after I started the boat I called the GA DOR and asked about the
sales tax situation on DIY boats. The first answer I got was that I
have to pay based on the market value. For me that would be about $17K!
That did not seem correct so after 5 or 6 phone calls I finally
reached the Commissioner's office and was told that you would only have
to pay based on the completed value if you are in business and convert
one of your products to personal use. I got a bit concerned that some of
the invoices for big items named "DRS Marine" as the buyer so I made up
invoices transferring them to me personnaly.

I also asked about sales tax when I called the DNR to get information on
getting a HIN assigned. Their response was "We don't talk to DOR and
they don't talk to us." It seems that that is about to change. I am
close enough to launch now that I believe I will go ahead and get my HIN
and hope they don't go back and look at prior registrations. I will
just have to pay property taxes an extra year.


Steve wrote:
What makes this strange is that I paid tax on my labor and I paid tax at a
rate of 9.5% (the current rate) rather than 8.5% that was in effect the
previous years. (Even though I had paid sales tax on the material, they
charge me 9.5% on the overall declared value of the boat and subtacted the
total sales tax paid previously at 8.5%.)

Had I not provided all of those reciepts, I would have paid a much more
using their methods (major equip, etc.).

I could have registered the boat in early stage of building, when I
purchased the bare fiberglass hull. But then the boat would have been
registered as built in 1995 rather than 2002. (as if model year has much to
do with a DIY boat)

I won't say what I paid in sales tax, but it would have paid for a new main.



--
Glenn Ashmore

I'm building a 45' cutter in strip/composite. Watch my progress (or lack
there of) at: http://www.rutuonline.com
Shameless Commercial Division: http://www.spade-anchor-us.com

On Sun, 12 Oct 2003 00:06:53 -0700, "Steve" wrote
something
.......and in reply I say!:

snip

Scary stuff about the tax on your own labour. We have a GST in Oz, and
AFAIK, that one (taxing a homebuilt as a bought commodity) has not
come in yet.

So any hobby that results in something that has to be registered is a
gonner!

Obviously, since they let you lower the value as it was unfinished,
and you will (presumably) only pay tax on the _materials_ you now
purchase, any boat built should be registred as soon as it's
seaworthy, nor when it's halfway comfortable.

I would think it would be fairer if you paid as you _sold_ the
product. To say you have "bought" your own labour when you build seems
a real beaut to me.

(I argued that the sales tax would be paid on
any subsequent material/equipment.)

What makes this strange is that I paid tax on my labor and I paid tax at a
rate of 9.5% (the current rate) rather than 8.5% that was in effect the
previous years. (Even though I had paid sales tax on the material, they
charge me 9.5% on the overall declared value of the boat and subtacted the
total sales tax paid previously at 8.5%.)

Had I not provided all of those reciepts, I would have paid a much more
using their methods (major equip, etc.).

snip
I won't say what I paid in sales tax, but it would have paid for a new main.

************************************************** ****************************************
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