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Glenn Ashmore
 
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Default A disturbing omen.

Last month I bought one of the company's older fleet cars for #2
daughter. Not exactly a "sweetheart deal" but definitely most favored
nation. ;-) Sent the title in for transfer and got a new tag. This
week I get a letter from the GA revenuers wanting to know the sales
price and asking for their pound of sales tax flesh. Casual sales of
cars have never been taxed before so I did some checking. It seems that
because the politicians are hungry for money in this budget crunch the D
of R has finally linked there computer system to Public Safety and are
tracking every title.

What has this to do with boatbuilding? DNR will be linked by next year.
Most of my material was purchased out of state or on eBay so I am
going to get hit bad. I think I will try to register before they get
linked.

This is just Georgia but most states are hunting for revenue now so
check out what your state is doing and plan accordingly if you have a
big project and be sure to have your receipts carefully documented
before you go to register your boat and get a HIN.

--
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

  #2   Report Post  
Brian Whatcott
 
Posts: n/a
Default A disturbing omen./diatribe in response

On Sat, 11 Oct 2003 21:48:02 -0400, Glenn Ashmore
wrote:

Last month I bought one of the company's older fleet cars for #2
daughter. Not exactly a "sweetheart deal" but definitely most favored
nation. ;-) Sent the title in for transfer and got a new tag. This
week I get a letter from the GA revenuers wanting to know the sales
price and asking for their pound of sales tax flesh. Casual sales of
cars have never been taxed before so I did some checking. It seems that
because the politicians are hungry for money in this budget crunch the D
of R has finally linked there computer system to Public Safety and are
tracking every title.

What has this to do with boatbuilding? DNR will be linked by next year.
Most of my material was purchased out of state or on eBay so I am
going to get hit bad. I think I will try to register before they get
linked.

This is just Georgia but most states are hunting for revenue now so
check out what your state is doing and plan accordingly if you have a
big project and be sure to have your receipts carefully documented
before you go to register your boat and get a HIN.



If the federal government reduces taxes, people applaud - not least
me. And if the government wants to make preemptive strikes on
suspect nations, then most of us tend to wave our flags.

In a nutshell: the feds can spend more and 'earn' (tax) less.

But states are different. Most of them are mandated to carry a
balanced budget. That means they cannot spend more than they get
in.

For some states - like California, that voted in an expanded public
education system before the economy collapsed, the costs under their
control are evident: schools, police, fire service, health services.

So they lay all off teachers, cops, firemen, slim out health services
etc., etc.

Can you blame them for getting creative on the 'income' side?
We all hate taxes, but we hate reductions in state supplied services
even more.

Good luck to the new governor of California: hope his audit uncovers
mucho waste - but even if he could make the trains run on time -
he will have REAL trouble holding services without tax increases.

So now you now the rest of the story - at least as relayed by an
economics prof who spoke on this topic recently - from that hotbed of
radical politics - Harvard (?). He also writes a regular column for
the yellow press - where all the bed-wetting liberals are supposed to
congregate - The New York Times (??)

So sad.

Brian Whatcott Altus OK
  #3   Report Post  
john s.
 
Posts: n/a
Default A disturbing omen./diatribe in response

Brian Whatcott wrote in message . ..
On Sat, 11 Oct 2003 21:48:02 -0400, Glenn Ashmore
wrote:

Last month I bought one of the company's older fleet cars for #2
daughter. Not exactly a "sweetheart deal" but definitely most favored
nation. ;-) Sent the title in for transfer and got a new tag. This
week I get a letter from the GA revenuers wanting to know the sales
price and asking for their pound of sales tax flesh. Casual sales of
cars have never been taxed before so I did some checking. It seems that
because the politicians are hungry for money in this budget crunch the D
of R has finally linked there computer system to Public Safety and are
tracking every title.

What has this to do with boatbuilding? DNR will be linked by next year.
Most of my material was purchased out of state or on eBay so I am
going to get hit bad. I think I will try to register before they get
linked.

This is just Georgia but most states are hunting for revenue now so
check out what your state is doing and plan accordingly if you have a
big project and be sure to have your receipts carefully documented
before you go to register your boat and get a HIN.



If the federal government reduces taxes, people applaud - not least
me. And if the government wants to make preemptive strikes on
suspect nations, then most of us tend to wave our flags.

In a nutshell: the feds can spend more and 'earn' (tax) less.

But states are different. Most of them are mandated to carry a
balanced budget. That means they cannot spend more than they get
in.

For some states - like California, that voted in an expanded public
education system before the economy collapsed, the costs under their
control are evident: schools, police, fire service, health services.

So they lay all off teachers, cops, firemen, slim out health services
etc., etc.

Can you blame them for getting creative on the 'income' side?
We all hate taxes, but we hate reductions in state supplied services
even more.

Good luck to the new governor of California: hope his audit uncovers
mucho waste - but even if he could make the trains run on time -
he will have REAL trouble holding services without tax increases.

So now you now the rest of the story - at least as relayed by an
economics prof who spoke on this topic recently - from that hotbed of
radical politics - Harvard (?). He also writes a regular column for
the yellow press - where all the bed-wetting liberals are supposed to
congregate - The New York Times (??)

So sad.

Brian Whatcott Altus OK


Every country or state gets the government it deserves....
john
  #4   Report Post  
Brian Combs
 
Posts: n/a
Default A disturbing omen./diatribe in response

I am concerned that this diatribe was just one line. I am not sure that
qualifies. Perhaps you could expand it to a minimum of 5 or 6 pages....
;-)

How true

Brian


  #5   Report Post  
Steve
 
Posts: n/a
Default A disturbing omen.

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




  #6   Report Post  
steveb
 
Posts: n/a
Default A disturbing omen.

"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?
  #7   Report Post  
Keith
 
Posts: n/a
Default A disturbing omen.

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?



  #8   Report Post  
Fred Williams
 
Posts: n/a
Default A disturbing omen.

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?





  #9   Report Post  
Terry Spragg
 
Posts: n/a
Default A disturbing omen.



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

  #10   Report Post  
Glenn Ashmore
 
Posts: n/a
Default A disturbing omen.

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



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