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63Taylor

Dealer consignment, tax question

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63Taylor

It seems because of bank finance issues instead of taking trades a lot of dealers seem to have consignment Malibus on their lots or close by. I was planning to look at one or two this weekend. I was wondering, if it is consignment, do I have to pay sales tax? One of them I am looking at isnt even on the lot, it is at a guys house, but dealer is advertising for him. How do laws work with that. For me in georgia this is about a $2200 question on the type of Malibu I am looking at

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hattric73
It seems because of bank finance issues instead of taking trades a lot of dealers seem to have consignment Malibus on their lots or close by. I was planning to look at one or two this weekend. I was wondering, if it is consignment, do I have to pay sales tax? One of them I am looking at isnt even on the lot, it is at a guys house, but dealer is advertising for him. How do laws work with that. For me in georgia this is about a $2200 question on the type of Malibu I am looking at

You would have to pay tax anyway, correct? You still have to pay sales taxes if it is bought/sold private party to private party. When you transfer the title, I believe you have to pay sales taxes at the registration office...

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63Taylor

on a car in Georgia you do not pay private to private sales tax. dont see why a boat would be different

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MalibuNation

In MI you would have to pay sales tax.

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barefootpaul
It seems because of bank finance issues instead of taking trades a lot of dealers seem to have consignment Malibus on their lots or close by. I was planning to look at one or two this weekend. I was wondering, if it is consignment, do I have to pay sales tax? One of them I am looking at isnt even on the lot, it is at a guys house, but dealer is advertising for him. How do laws work with that. For me in georgia this is about a $2200 question on the type of Malibu I am looking at

You would have to pay tax anyway, correct? You still have to pay sales taxes if it is bought/sold private party to private party. When you transfer the title, I believe you have to pay sales taxes at the registration office...

Depends on the state. Here in MN, unlike a car, if you buy a used boat from a private party there is no tax. Only somthing like $35 for three year registration. Clap.gif That was a pleasant surprise for me Yahoo.gif

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Chia
on a car in Georgia you do not pay private to private sales tax. dont see why a boat would be different

are you sure?

on a consignment, i think you will have to pay. It is not much different than hiring someone to auction something off for you and in that instance, in GA, the proceeds are taxable.

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85 Barefoot

Many different ways that states handle this. Using the post on Georgia, if I bought a car I'd have to pay sales tax in my state when registering, others may not. I don't think anyone here can accurately answer unless in OP's state. Call your tag office to find out, they'll tell you.

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CedarLakeSkier
Many different ways that states handle this. Using the post on Georgia, if I bought a car I'd have to pay sales tax in my state when registering, others may not. I don't think anyone here can accurately answer unless in OP's state. Call your tag office to find out, they'll tell you.

But how do they know how much you paid in order to pay sales tax? I'm not advocating this, but that number could easily be skewed...

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msuwaterski
But how do they know how much you paid in order to pay sales tax? I'm not advocating this, but that number could easily be skewed...

I am advocating this. I have never understood why if taxes were paid on the boat at time of original purchase from the dealer, why taxes need to be paid again when the boat is sold to a private party. That is double taxation, and I am not for it.

So, whenever I buy something off of a private seller, I always ask them to leave the sales price area on the title blank so I can fill it in at a later date.

Edited by msuwaterski

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shawndoggy
But how do they know how much you paid in order to pay sales tax? I'm not advocating this, but that number could easily be skewed...

I am advocating this. I have never understood why if taxes were paid on the boat at time of original purchase from the dealer, why taxes need to be paid again when the boat is sold to a private party. That is double taxation, and I am not for it.

So, whenever I buy something off of a private seller, I always ask them to leave the sales price area on the title blank so I can fill it in at a later date.

whether or not the tax is fair or reasonable or makes sense has nothing to do with tax fraud. If the tax is due based on the sales price then it's due.

Here in NV private party sales (of cars or boats) don't result in sales tax. Dealer sales do. Consignment sales are considered dealer sales. So you would pay sales tax on a consignment in NV.

I only buy private party used here!

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63Taylor
But how do they know how much you paid in order to pay sales tax? I'm not advocating this, but that number could easily be skewed...

I am advocating this. I have never understood why if taxes were paid on the boat at time of original purchase from the dealer, why taxes need to be paid again when the boat is sold to a private party. That is double taxation, and I am not for it.

So, whenever I buy something off of a private seller, I always ask them to leave the sales price area on the title blank so I can fill it in at a later date.

whether or not the tax is fair or reasonable or makes sense has nothing to do with tax fraud. If the tax is due based on the sales price then it's due.

Here in NV private party sales (of cars or boats) don't result in sales tax. Dealer sales do. Consignment sales are considered dealer sales. So you would pay sales tax on a consignment in NV.

I only buy private party used here!

Thanks,

I guess I should have realized it does matter state to state. To make it even more complicated, the dealer is in SC and I live in Ga. The boat is already tagged for another couple of years, can you wait till then or get a ticket, I assume a ticket

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BillFooter

I am a dealer (not boats). Sales tax laws vary in many states. If you live in a state that makes you pay sales tax only if purchased from a dealer, on a consignment sale it will depend on whether the title is assigned from the owner to the dealer and then to you or whether it is assigned directly from the owner to you. If the title is assigned from the owner to the dealer and then to you, you will probably have to pay sales tax.

In Missouri where I live it does not matter. You pay the sales tax either way.

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Chia
But how do they know how much you paid in order to pay sales tax? I'm not advocating this, but that number could easily be skewed...

I am advocating this. I have never understood why if taxes were paid on the boat at time of original purchase from the dealer, why taxes need to be paid again when the boat is sold to a private party. That is double taxation, and I am not for it.

So, whenever I buy something off of a private seller, I always ask them to leave the sales price area on the title blank so I can fill it in at a later date.

whether or not the tax is fair or reasonable or makes sense has nothing to do with tax fraud. If the tax is due based on the sales price then it's due.

Here in NV private party sales (of cars or boats) don't result in sales tax. Dealer sales do. Consignment sales are considered dealer sales. So you would pay sales tax on a consignment in NV.

I only buy private party used here!

Plus1.gif

if you put a price on the document that appears too low, it is very easy for the tax dept to contact the previous owner to confirm the selling price and there is no incentive for the previous owner to lie for you. Tax Fraud anyone.

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MaddMaxx

In Georgia, if a dealer lists the boat and brings the buyer and seller together, then there is a county tax. I learned this the hardway.

Edited by MaddMaxx

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Soon2BV
But how do they know how much you paid in order to pay sales tax? I'm not advocating this, but that number could easily be skewed...

I am advocating this. I have never understood why if taxes were paid on the boat at time of original purchase from the dealer, why taxes need to be paid again when the boat is sold to a private party. That is double taxation, and I am not for it.

So, whenever I buy something off of a private seller, I always ask them to leave the sales price area on the title blank so I can fill it in at a later date.

I don't think the tax laws (or any others) are written to allow us each to decide what we do and don't agree with. If you paid $25K and write in $15K, you are guilty of tax fraud.

In Indiana, you pay sales tax every time a vehicle is sold. Either the dealer collects it and gives you a receipt, or you pay it at the license branch when you register it (car, truck, boat, motorcycle).

If you enter a number too low, they will question you and may go by book value instead.

There is a gift option now, where a parent can give a child a car for $1 and pay no taxes on the transfer.

Edited by Soon2BV

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63Taylor
In Georgia, if a dealer lists the boat and brings the buyer and seller together, then there is a county tax. I learned this the hardway.

I have a consignment boat I am looking at at Atlanta inboard, they told me I would pay tax. The one I am looking at in SC, I am not sure

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MaddMaxx

Hey, 63Taylor.

Atlanta Inboard is where I bought my boat about a month ago. I bought one of the camp boats. Are you looking at the all white WS?

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Needles

Most "sales" taxes are actually statutory "use" taxes that apply when a person or entity aquires and uses a product or in some states a service. When a person aquires and uses the product the tax is due. Although this does vary from state to state. I would not recommend commiting any funny business but your chances of getting caught are slim. For example when you purchase an item over the internet or mail order and don't pay the use tax to the state where you bought it from you are supposed to submit the tax to your residence state. Very few people do this and I have never heard of any one getting caught. Good luck.

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skyskier

The only thing I have ever purchased on the internet was my TMC membership. Whistling.gif Since I don't want to be an outlaw, I plan to pay tax on that someday.................but not today.

Edited by skyskier

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stewart
on a car in Georgia you do not pay private to private sales tax. dont see why a boat would be different

are you sure?

on a consignment, i think you will have to pay. It is not much different than hiring someone to auction something off for you and in that instance, in GA, the proceeds are taxable.

In AZ you only pay tax once. So on a new vehicle, boat etc. the original owner pays sales tax. If you buy a used vehicle, no matter where in AZ you don't pay tax. It worked great for trade-ins as well. Trade a vehicle in and only pay the difference in tax from new vehicle sale price and trade in price. man i loved AZ.

In CA, you pay tax on everything. I think there even thinking about taxing the air we breath. :(

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63Taylor
Hey, 63Taylor.

Atlanta Inboard is where I bought my boat about a month ago. I bought one of the camp boats. Are you looking at the all white WS?

No the 05 black and grey WS they finally dropped the price to a reasonable level on. I am supposed to try it this week. I am also looking at a few at JC sports in Seneca (Clemson) SC. Tax in Ga is 7% so we are talking between 2500-3000 bucks

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Baddog
on a car in Georgia you do not pay private to private sales tax. dont see why a boat would be different

are you sure?

on a consignment, i think you will have to pay. It is not much different than hiring someone to auction something off for you and in that instance, in GA, the proceeds are taxable.

In AZ you only pay tax once. So on a new vehicle, boat etc. the original owner pays sales tax. If you buy a used vehicle, no matter where in AZ you don't pay tax. It worked great for trade-ins as well. Trade a vehicle in and only pay the difference in tax from new vehicle sale price and trade in price. man i loved AZ.

In CA, you pay tax on everything. I think there even thinking about taxing the air we breath. :(

Don't you guys pay tax on the taxes?

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