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walleyepro

Private Boat Sale - Sales Tax

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I'm looking to purchase a boat through a private sale in South Dakota and register for use in MN. Do I need to pay tax on the boat?

My past experience has been that I only need to pay tax on the trailer when I transfer the title and pay registration on the boat. However, I have not bought a boat out of state.

Thanks

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I had the same situation a few years back. Bought it in South Dakata and transferred everything to Minnesota. I was only taxed on the trailer.

If at all possible deal with the people at the DNR. Fortunately there main office is just down the road from me. I did mine through the DMV and a few things got really messed up. The fine people at the DNR got everything squared away and gave me the "deal with them only" advice when it comes to boats and trailers and such.

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Airjer-

Where is the DNR's main office? Do they have an office in the Cities? I also had a problem last time when dealing with the DMV. They tried to get me to register the trailer for a larger capacity than it was so that I would have had to get tabs for it each year.

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Not to hijack the thread but how does that work with a new boat purchased out of state? Still pay full taxes on registration, right?

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Yes it's true you only pay taxes on the trailer but here's one additional tip; make sure you get an itemized reciept. Let's say you pay $10,000 for the boat motor and trailer. The reciept should read something like; motor $5,000, boat $3,500 and trailer $1,500. Then they take it for face value and tax you on the $1,500 unless it's way out of line and seems disproportionate to the overall value of the package. In other words they're not going to buy that your hauling a 40 foot cuddy around with a $500 trailer. If they smell a rat then they refer to blue book or they just assign a value to the trailer based on a percentage of the overall sale and you get shafted every time. So be careful and make sure it's documented correctly and you won't have any problems. Fact is most DMV people don't know squat about boats so you have a lot of play in this area. Good luck.

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mn state law quotes that first time buyer from out of state to mn will pay sales tax on boat and you should have a receipt for such per Willmar kandiyohi county deputy register

we bring boats to mn and they all require this

trailers are seperate from dnr and also require tax

some registars are not doing the tax and you can save by using them

wish that state would tax all transactions and put money into funding the waters

boy am i going to get flack for that comment ha?

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wish that state would tax all transactions and put money into funding the waters

boy am i going to get flack for that comment ha?

I wish I had enough money to buy a boat so I could have an opinion on being taxed on it :P

In all seriousness, at least on certain things you know exactly what your tax dollars are funding when you buy licenses and such, and often enough it's a feel-good situation for me.

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What are the rules for MN, on private party sales? Do you have to pay the sales tax on just the trailer or the boat as well.

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wish that state would tax all transactions and put money into funding the waters

boy am i going to get flack for that comment ha?

I wish I had your money, so I could be in the position of wishing the State would tax me more...

(you kinda asked for it ;))

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I just did the title transfer on the boat I purchased from private party. I was taxed on the trailer but not on the boat.

The boat reg. was up to date in MN.

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Trailer is the only part of the transaction you will pay tax on as it is licensed by the State. You only paid $100 for the trailer RIGHT..... crazy

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Similar question:

I am picking up my dad's old boat, it's out of state, and he is just gifting it to me. Do I have to pay any taxes on it? Is it as simple as showing up at the DNR/DMV office and paying to have the boat and the trailer registered?

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2 ways to do it: 1- keep it in his name and never worry about paying anything. 2- have him write a letter saying he is gifting this to you, using serial and vin numbers, with it signed, and they should accept it. You still will have to pay to have the title changed I believe.

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I just did the title transfer on the boat I purchased from private party. I was taxed on the trailer but not on the boat.

The boat reg. was up to date in MN.

Thanks for your reply

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One thing to do is to get the exact make/model of the trailer and run it through one of the online pricing sites. I have a 2005 boat and trailer and the trailer came out at $600.00 on the pricing guide. I just brought that print out in and they said "sounds good to me".

You just don't want to pay more than it is worth, tax wise. grin

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There is good info online covering this, just google Minnesota Boat Registration or any other state for that matter.

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I'm purchasing a slightly used boat from a private party. I'll I have to do is have a separate bill of sale for the trailer and boat/motor and I will not have to pay sales tax on the boat???

If this is the case that would be great, but I can't imagine Minnesota missing out on a tax opportunity.

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I bought a used boat from a private party last year. The bill of sale wasn't itemized. No need to research the trailer value, the woman working basically told me to pick a # lol... So I paid tax on a $200 trailer. smile

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Thanks,

I was playing poker last night with some guys and none of them believed that I could avoid sales tax in MN through purchasing a boat from another person. However, none of them had ever purchased a boat either.

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Not to hijack the thread but how does that work with a new boat purchased out of state? Still pay full taxes on registration, right?

When I registered my new River Pro last year I had to pay sales tax on the boat, motor and trailer. Could have got a 998si for what sales tax cost me frown

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Here's the deal. You pay sales tax on the boat when you register the boat after the sale. If you aren't truthful and you insure the boat for less than you paid for it, it may comeback to bite you in the butt if your boat is totally destroyed and you try to collect insurance. I hate paying as much as anyone, but I hate trying to cover lies to the officials alot more. That's your choice in my book.

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