Sales Tax on New Boat Purchased outside of MN

[Pherris]

I was wondering if anyone knows how sales tax is handled if I purchase a boat from an out of state dealer? Do I pay the sales tax to MN when I register the boat on the amount paid? I asked the dealer and he said he does not collect the tax and to contact the DMV or DNR. I am going to do that but until then anyone?

Thanks

[Loose]

You get to pay sales tax when you register in mn.

[hydro]

The friendly folks at the DMV will be more than happy to let you you know how much Minnesota sales tax you need to pay before you can register that boat!

[jstirewalt]

Pherris:

Unless things have changed recently, you will only have to pay sales tax on the value of the trailer and the boat hull itself. The value of the outboards, electronics etc. are not included in the amount you pay tax on.

jss

[Pherris]

Thanks guys I will call the DMV today and post the outcome.

[hydro]

I'm interested to see the outcome on this one. Since it was purchased from a dealer, there will be a reciept for the total amount of the sale, and I would expect the State to try and collect sales tax on the entire amount. A private party sale would be a different story.

[Valv]

Some states will require to pay sales tax when you purchase the boat, regardless if you are a resident in that state or not.

Then when you transfer to MN you will have to get refunded from the state you originally purchased, or have MN Dept of Revenue credit your sales tax (or the difference) from what you paid originally.

There are interstate agreements with the different Depts of Revenue regarding sales tax.

[Pherris]

Ok well I am not real confident in the info because the agents I spoke with both seemed to a bit hesitant.

Called the DVS(old DMV) they said I only pay a onetime registration fee of $55 for the trailer and the plate fee. I asked about sales tax and they said they do not handle that to call the DNR.

I called the DNR and they said yes they would collect the tax of %6.875 on the cost of the boat less the trailer.

I tried to explain to both that it is a Package and includes the trailer (it is a Ranger) and they said to have the dealer break out the costs on the bill of sale and or purchase agreement. The DNR would collect tax on the Boat and the DVS would collect the reg and plate fee for the trailer.

So you think they would let me pay 50K for the trailer and 10K for the boat? I doubt it. I will stop by a deputy register and see if I can get a bit more clarity. The dealer I am talking to said they do not collect the tax because I am a out of state buyer.

So there you have it. Clear as mud.

Thanks for the replies and I will repost when I get more clarity.

[JohnMickish]

So you don't have to pay a tax on the motor? This is good since you can have the dealer list retail prices for the trailer and motor, lowering the cost of the boat thus lowering the tax liability you owe. Can I ask where you picked up the Ranger?

[Pherris]

We did not discuss the motor I just assumed they would. Good question though and I will ask when I go to the deputy register to inquire.

I do not know the dealers name. We have been dealing through email and phone calls. We came in contact with each other as a result of a post on a message board. I was asking some questions about a Z521 and he replied then we exchanged emails and voice mails. His price is much better then what I have found locally with the options I want. He is going to be calling me tomorrow and I will post the info once I have it if he has no objections. I cant imagine he would.

Good Fishing!!

[Pherris]

Mnfishnguy,

The dealer is Russell Marine Products LLC. He is out of Eldorado, KS his name is Justin Russell. I am going to go to the Deputy Registrar tomorrow about the tax. I will update when I get any additional info on it.

Good Fishing!!

[JohnMickish]

This is good info since I believe my next boat will come from Cabelas in South Dakota, also a Ranger dealer.

[Pherris]

Ok I went to the DVS today and here is what they said:

The dealer needs to break out the cost for the trailer and the boat. I pay the registration fee and the plate fee on the trailer. I pay sales tax on the price of the boat less trade in if I have one(I am not trading mine in.) I asked about the motor and they said that I do not pay sales tax on the motor. Seems odd but hey who am I to argue?

Also picked up the new fishing habitat plates.

I am still skeptical. I will update how it actually works for real when I do it.

Good Fishing!!

[Loose]

That is good to know you don't have to pay tax on the motor that will save me a bunch of money

[Loose]

I emailed the dnr about this and they said you pay sales tax on the boat and motor but you actually do the paper work at the dvs so who knows? find out when we go to do it I guess

[SkunkedAgain]

I bought a 12ft aluminum boat in WI, no trailer or motor, last spring. The dealer did not charge me sales tax. I provided the receipt to the friendly folks at the Minnesota DVS. They collected all of my money and gave me a MN registration. It was pretty easy, and since it was at the far opposite end of the spectrum from a Ranger, I didn't have to pay much money.

[Pherris]

Like I said I guess I really wont know until I do it. I am picking the boat up in late March so I will update then.