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#1
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On Feb 20, 12:22�pm, Short Wave Sportfishing
wrote: Hey, look at it this way - it could be CT where you have to pay "usuage" tax - whoops, I meant fee - if your boat is registered out of state and it's in a marina here in CT. CT also is a non-title state for boats. *Which basically means that you can steal a boat in another state, bring it here, register it and take it to another title state to sell it. *Pretty neat huh? That use tax thing isn't all that uncommon. We have a version of it in Washington. I think you'll find that simply being in a marina doesn't trigger the tax if you're just passing through. After a statutory period of time in a dedicated slip, (often 90 days), many states conclude that a boat is being kept in the state on a permanent basis and will require the vessel to be registered in the state. "Use tax" is a substitute for sales tax, as there is no actual sale being made. The good news is that if you paid sales tax when you bought your boat (and have the purchase paperwork to prove it) nearly all states honor a "reciprocal" agreement with other sales tax collecting states. If the sales tax rate was as high or higher where the boat was purchased, you normally get a free pass on the "use tax" (but not the tab fee) in the second state. If the tax was lower, you typically have to pay the difference. If a purchase in State A was originally taxed at 5% and State B collects 9%, moving a boat from State A to State B will trigger a 4% use tax. States with higher sales taxes than neighboring states, (especially back east where the state lines are a couple of hundred yards apart grin), rely on such a system to prevent each and every vehicle and vessel purchase being made just across the state line. A lot of times people react with a wink, a nod, and a "good for you!" when they hear of somebody lying to evade taxes. I wonder how many of the supporters stop to consider that somebody is still paying for all of the government services that the tax evaders use, and that somebody is (partially) them. I'm not much better, I tend to turn a blind but disapproving eye toward bogus out-of-state boat registrations; I guess there's a difference between not being the least bit sympathetic when the liars and cheaters are caught and actually turning them in. |
#2
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posted to rec.boats
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On 21 Feb 2007 08:42:00 -0800, "Chuck Gould"
wrote: On Feb 20, 12:22?pm, Short Wave Sportfishing wrote: Hey, look at it this way - it could be CT where you have to pay "usuage" tax - whoops, I meant fee - if your boat is registered out of state and it's in a marina here in CT. CT also is a non-title state for boats. hich basically means that you can steal a boat in another state, bring it here, register it and take it to another title state to sell it. retty neat huh? snip A lot of times people react with a wink, a nod, and a "good for you!" when they hear of somebody lying to evade taxes. I wonder how many of the supporters stop to consider that somebody is still paying for all of the government services that the tax evaders use, and that somebody is (partially) them. I'm not much better, I tend to turn a blind but disapproving eye toward bogus out-of-state boat registrations; I guess there's a difference between not being the least bit sympathetic when the liars and cheaters are caught and actually turning them in. Not sure exactly how and why it works, but having a dealer invoice or title the outboard separately when a boat is bought outside of Florida eliminates Florida sales tax on the outboard for the purchaser. Whether the savings is worthwhile logistically or in terms of addressing the ethical issues is another question. But I intend to get the answers. --Vic |
#3
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posted to rec.boats
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Vic Smith wrote:
On 21 Feb 2007 08:42:00 -0800, "Chuck Gould" wrote: On Feb 20, 12:22?pm, Short Wave Sportfishing wrote: Hey, look at it this way - it could be CT where you have to pay "usuage" tax - whoops, I meant fee - if your boat is registered out of state and it's in a marina here in CT. CT also is a non-title state for boats. hich basically means that you can steal a boat in another state, bring it here, register it and take it to another title state to sell it. retty neat huh? snip A lot of times people react with a wink, a nod, and a "good for you!" when they hear of somebody lying to evade taxes. I wonder how many of the supporters stop to consider that somebody is still paying for all of the government services that the tax evaders use, and that somebody is (partially) them. I'm not much better, I tend to turn a blind but disapproving eye toward bogus out-of-state boat registrations; I guess there's a difference between not being the least bit sympathetic when the liars and cheaters are caught and actually turning them in. Not sure exactly how and why it works, but having a dealer invoice or title the outboard separately when a boat is bought outside of Florida eliminates Florida sales tax on the outboard for the purchaser. Whether the savings is worthwhile logistically or in terms of addressing the ethical issues is another question. But I intend to get the answers. Get this - in Rhode Island, only the boat and trailer is taxed, not the engine. |
#4
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posted to rec.boats
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![]() "Short Wave Sportfishing" wrote in message ... Vic Smith wrote: On 21 Feb 2007 08:42:00 -0800, "Chuck Gould" wrote: On Feb 20, 12:22?pm, Short Wave Sportfishing wrote: Hey, look at it this way - it could be CT where you have to pay "usuage" tax - whoops, I meant fee - if your boat is registered out of state and it's in a marina here in CT. CT also is a non-title state for boats. hich basically means that you can steal a boat in another state, bring it here, register it and take it to another title state to sell it. retty neat huh? snip A lot of times people react with a wink, a nod, and a "good for you!" when they hear of somebody lying to evade taxes. I wonder how many of the supporters stop to consider that somebody is still paying for all of the government services that the tax evaders use, and that somebody is (partially) them. I'm not much better, I tend to turn a blind but disapproving eye toward bogus out-of-state boat registrations; I guess there's a difference between not being the least bit sympathetic when the liars and cheaters are caught and actually turning them in. Not sure exactly how and why it works, but having a dealer invoice or title the outboard separately when a boat is bought outside of Florida eliminates Florida sales tax on the outboard for the purchaser. Whether the savings is worthwhile logistically or in terms of addressing the ethical issues is another question. But I intend to get the answers. Get this - in Rhode Island, only the boat and trailer is taxed, not the engine. Same in Florida, as long as it's an outboard. |
#5
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posted to rec.boats
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![]() "Vic Smith" wrote in message ... On 21 Feb 2007 08:42:00 -0800, "Chuck Gould" wrote: On Feb 20, 12:22?pm, Short Wave Sportfishing wrote: Hey, look at it this way - it could be CT where you have to pay "usuage" tax - whoops, I meant fee - if your boat is registered out of state and it's in a marina here in CT. CT also is a non-title state for boats. hich basically means that you can steal a boat in another state, bring it here, register it and take it to another title state to sell it. retty neat huh? snip A lot of times people react with a wink, a nod, and a "good for you!" when they hear of somebody lying to evade taxes. I wonder how many of the supporters stop to consider that somebody is still paying for all of the government services that the tax evaders use, and that somebody is (partially) them. I'm not much better, I tend to turn a blind but disapproving eye toward bogus out-of-state boat registrations; I guess there's a difference between not being the least bit sympathetic when the liars and cheaters are caught and actually turning them in. Not sure exactly how and why it works, but having a dealer invoice or title the outboard separately when a boat is bought outside of Florida eliminates Florida sales tax on the outboard for the purchaser. Whether the savings is worthwhile logistically or in terms of addressing the ethical issues is another question. But I intend to get the answers. I bought my last boat new in South Carolina. When I brought it home to Florida all I had to pay tax on was the price listed on the invoice for the hull. You only pay tax on the portion of the boat that is titled, ie the outboard. So it's important to have the boat and outboard as separate line items on the invoice. |
#6
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posted to rec.boats
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On 21 Feb 2007 08:42:00 -0800, "Chuck Gould"
wrote: On Feb 20, 12:22?pm, Short Wave Sportfishing wrote: Hey, look at it this way - it could be CT where you have to pay "usuage" tax - whoops, I meant fee - if your boat is registered out of state and it's in a marina here in CT. CT also is a non-title state for boats. hich basically means that you can steal a boat in another state, bring it here, register it and take it to another title state to sell it. retty neat huh? That use tax thing isn't all that uncommon. We have a version of it in Washington. I think you'll find that simply being in a marina doesn't trigger the tax if you're just passing through. After a statutory period of time in a dedicated slip, (often 90 days), many states conclude that a boat is being kept in the state on a permanent basis and will require the vessel to be registered in the state. "Use tax" is a substitute for sales tax, as there is no actual sale being made. The good news is that if you paid sales tax when you bought your boat (and have the purchase paperwork to prove it) nearly all states honor a "reciprocal" agreement with other sales tax collecting states. If the sales tax rate was as high or higher where the boat was purchased, you normally get a free pass on the "use tax" (but not the tab fee) in the second state. If the tax was lower, you typically have to pay the difference. If a purchase in State A was originally taxed at 5% and State B collects 9%, moving a boat from State A to State B will trigger a 4% use tax. States with higher sales taxes than neighboring states, (especially back east where the state lines are a couple of hundred yards apart grin), rely on such a system to prevent each and every vehicle and vessel purchase being made just across the state line. A lot of times people react with a wink, a nod, and a "good for you!" when they hear of somebody lying to evade taxes. I wonder how many of the supporters stop to consider that somebody is still paying for all of the government services that the tax evaders use, and that somebody is (partially) them. I'm not much better, I tend to turn a blind but disapproving eye toward bogus out-of-state boat registrations; I guess there's a difference between not being the least bit sympathetic when the liars and cheaters are caught and actually turning them in. When I bought my boat, I registered it in Maryland, as that is where it was docked. I paid the taxes, titled it there, and did everything I was supposed to do. Now I'm registering it in Virginia. To do so, I must get it titled in Virginia. To do that, I must send the Virginia folks the MD title, the MD registration, and *proof* that I paid MD taxes. Well, I don't recall getting a receipt from MD for the taxes, but I *did* get a title, which should be proof enough I paid the taxes. But it's not. So, I called MD. To get a copy of the records showing my payment of the taxes, I must send them $16 and a records request form, which must be notarized! We take this **** seriously in this part of the country! -- *****Have a Spectacular Day!***** John H |
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