Taxes

[smeagol]

I bought my boat summer of '05 ('05 VLX). Got my first tax bill just the other day. I can't figure out if I was just pollyana in my research, or if I was totally missing something. But my bill was double what I was expecting. I'm registered in SC, and my tax bill is $630. I'd like to hear from others to see if this is in the ballpark of what you are paying... especially those of you who are in SC.

[2 ThumbsUp]

Can't help you on SC specifically but personal property taxes vary quite a bit (state/state and county/county). My boat/trailer are registered where my dock slip is located (conveniently, for me, a low tax-rate county). If registered in the county I live in, I would pay substantially more.

[jphillips]

I am a little confused.... maybe because I am a Canadian. What does your boat have to do with property tax. In Canada if you buy a boat it is like a car, you pay taxes when you buy it... does not matter where you buy it you still pay the same tax. What does a boat and taxes have to do with where your slip is or your first tax bill? Don't you pay taxes when you buy the boat directly to the boat dealer?

Confused

[2 ThumbsUp]

In most states we get to pay sales tax on the purchase as well as annually on the value of personal property such as cars, boats etc...

[edwin]

I am a little confused.... maybe because I am a Canadian. What does your boat have to do with property tax. In Canada if you buy a boat it is like a car, you pay taxes when you buy it... does not matter where you buy it you still pay the same tax. What does a boat and taxes have to do with where your slip is or your first tax bill? Don't you pay taxes when you buy the boat directly to the boat dealer?

Confused

As 2 thumbs stated, the tax rule vary by state. In my home state (Missouri), goes like this:

Pay sales tax at the time of registration. That tax rate is based on the sales tax rate where the boat / trailer are registered. The local rates can vary widely from county to county.

Dec 31, we're subject to a personal property tax for all property registered with the state - cars, boats, trailers, motorcyles, etc. Tax rate is based on what county in which the boat is registered.

All property owned on Jan 1 that's registered with the state must be 'declared', and will accordingly taxed at the following of that year.

Do moose pay taxes up north, eh?

[rbetts]

Well, in CA, the gov't feels that if you own a boat, it's a luxury, and therefore subject to an annual tax. It is considered taxable personal property. Mine is $420 per year for my 03 Sunscape. Oh Yeah, it was also subject to a 7.75% sales tax at time of purchase.

[electricjohn]

I hope no NJ legislators are reading this thread. They are always looking for ways to more money in their bloated state budget.

[jphillips]

I would really hate to get taxed on my toys. Especially with all the toys I like to play with and we pay 14% at source for taxes.

Wonder who has the upper hand: paying big taxes and over inflated prices on items (70K base price on a VLS BU) or paying annually for our toys. I would think you win unless you own the item for more than 10 years (difference in the 7% tax and 14% at source).

Still amazes me, while I monitor the taxes and costs for my close friends in the US, every year I find some new difference in our systems.

John

[Texasguy]

Another in the Long list of reasons to move to TEXAS. I think it cost me about 6.25% sales tax at purchase and hmmm, lemmeesee...about $75 per year to register.

[jshap]

My boat is registered in Indiana where I play....taxes last year were $368. If I had registered it in IL, it would have been a lot cheaper since IL doesn't have an ad valorem tax on vehicles the way IN does.

[sheeprides]

Well, in CA, the gov't feels that if you own a boat, it's a luxury, and therefore subject to an annual tax. It is considered taxable personal property. Mine is $420 per year for my 03 Sunscape. Oh Yeah, it was also subject to a 7.75% sales tax at time of purchase.

That sounds pretty expensive for an 03. You can call the state assessor and tell them that they have the value of your boat too high. They will work with you on the stated value and lower your tax bill for next year. You might even get a refund from this year.

[Daman]

California has got it bad, I know because I live in California right now. What is good a great is that I am moving back to Vegas and Nevada doesn't have an LUXURY TAX.

Interestingly enough there is no residency requirement in Nevada for boat registraion at the Department of Wildlife, but the Nevada DMV does require residency for the trailer. Just thought that was interesting for all you........ Just food for thought.

[BlastRlxi]

Another in the Long list of reasons to move to TEXAS. I think it cost me about 6.25% sales tax at purchase and hmmm, lemmeesee...about $75 per year to register.

Ditto for Ohio. That is insane to have to pay a luxury tax or a personal property tax like that.

[jphillips]

I guess we pay the luxury tax right up front at 14% for everything we buy 7% Provicial Tax and 7% GST. Cars, house, boats, everything. Houses have an annual tax on them but no luxury tax. If you do some math you guys are ahead if you own the item for less than 10 years, but after that paying the 14% up front wins. For example

Car 50K with additional tax of 7% = 3500 (the other 7% I assume you are already paying that)

luxury tax of 350 a year would mean it would take 10 years of luxury tax to pay the same amount as our 7% tax.

So is the luxury tax a tax deduction as you are able to do with your house interest? In Canada we do not get to subtract our house interest from our income.

[smeagol]

So, am I hearing that I have the pleasure of the largest annual tax bill for TMC. Anyone else from SC want to weigh in? I live in Georgia, and am embarrassed that I was totally oblivious to how much this was going to cost. I can't figure out how I came up with my estimate for the annual tax bill when I bought the boat. It may have been the dealer.

My only consolation is that I only had to pay $300 in sales tax.

[JohnDoe]

I guess we pay the luxury tax right up front at 14% for everything we buy 7% Provicial Tax and 7% GST. Cars, house, boats, everything. Houses have an annual tax on them but no luxury tax. If you do some math you guys are ahead if you own the item for less than 10 years, but after that paying the 14% up front wins. For example

Car 50K with additional tax of 7% = 3500 (the other 7% I assume you are already paying that)

luxury tax of 350 a year would mean it would take 10 years of luxury tax to pay the same amount as our 7% tax.

So is the luxury tax a tax deduction as you are able to do with your house interest? In Canada we do not get to subtract our house interest from our income.

Generally so but you're not figuring the future value of what you pay up front. In theory, if you took that 3500 at the time of purchase and just bought a simple 10 year annuity, you would have "made" money...by either receiving more than $350 per year or having a sum at the end.

[Malibudude]

I guess we pay the luxury tax right up front at 14% for everything we buy 7% Provicial Tax and 7% GST. Cars, house, boats, everything. Houses have an annual tax on them but no luxury tax. If you do some math you guys are ahead if you own the item for less than 10 years, but after that paying the 14% up front wins. For example

Car 50K with additional tax of 7% = 3500 (the other 7% I assume you are already paying that)

luxury tax of 350 a year would mean it would take 10 years of luxury tax to pay the same amount as our 7% tax.

So is the luxury tax a tax deduction as you are able to do with your house interest? In Canada we do not get to subtract our house interest from our income.

No we can't deduct our luxury tax, but we can on our interest from a mortgage or home equity lines of credit. Just another great thing about Cali....

[Daman]

I guess we pay the luxury tax right up front at 14% for everything we buy 7% Provicial Tax and 7% GST. Cars, house, boats, everything. Houses have an annual tax on them but no luxury tax. If you do some math you guys are ahead if you own the item for less than 10 years, but after that paying the 14% up front wins. For example

Car 50K with additional tax of 7% = 3500 (the other 7% I assume you are already paying that)

luxury tax of 350 a year would mean it would take 10 years of luxury tax to pay the same amount as our 7% tax.

So is the luxury tax a tax deduction as you are able to do with your house interest? In Canada we do not get to subtract our house interest from our income.

No we can't deduct our luxury tax, but we can on our interest from a mortgage or home equity lines of credit. Just another great thing about Cali....

Umm, so as I said before you can register A boat in Nevada without a residency requirment and not need to go to the Department of Wildlife to do it, you can do this over the phone. The California DMV doesn't care that you have a trailer registered with no boat to go with it, they just want their money. I travel all over the western states, and no lake unless it is private cares where your boat is registered as long as it registered and not stolen. IF ANYONE FROM THE CALIFORNIA TAX GODS IS READING THIS I AM ONLY GIVING MY EXPREINCE FOR THE SAKE OF CONVERSATION NOT GIVING ADVICE.........

Edited December 14, 2006 by Daman

[2 ThumbsUp]

Another in the Long list of reasons to move to TEXAS. I think it cost me about 6.25% sales tax at purchase and hmmm, lemmeesee...about $75 per year to register.

Ditto for Ohio. That is insane to have to pay a luxury tax or a personal property tax like that.

Sorry Blast, but gotta call BS on that. Never have heard anyone call the Buckeye state a low tax state.

[Gordo]

Heck, register your boat in Texas!!!! No personal property tax, no luxury tax, NO INCOME TAX!!!! Just the sales tax. You can always register your boat in Texas!!! Here's the form: http://www.tpwd.state.tx.us/publications/p...application.pdf

Cost you around $50. Then you will have to renew your registration (the sticker) every 2 years - I recall around $40 - None of the regs that I read say you have to be a resident of Texas to transfer title. But, of course you will have a boat with a registration number that begins with "TX" on your lake!!!

[stewart]

California has got it bad, I know because I live in California right now. What is good a great is that I am moving back to Vegas and Nevada doesn't have an LUXURY TAX.

Interestingly enough there is no residency requirement in Nevada for boat registraion at the Department of Wildlife, but the Nevada DMV does require residency for the trailer. Just thought that was interesting for all you........ Just food for thought.

My boat is said to be stored in AZ right now, so I dodged the bullet this year..... but me thinks out of sate in NV might be a way to go..... Afterall, I do use it in NV primarily

At least thats what I'll tell the blood sucking &%$%$%^&*&***!!!!!.

[WakeGirl]

Oregon is a bit different than all of the previous states mentioned. No sales tax, no luxury tax - just the reg fees on both the trailer & boat which might equal out to $50-60 per year (not sure exactly, the boat is on a 2 year cycle & the trailer is paid up for 4). We do have income taxes though.

[stewart]

Oregon is a bit different than all of the previous states mentioned. No sales tax, no luxury tax - just the reg fees on both the trailer & boat which might equal out to $50-60 per year (not sure exactly, the boat is on a 2 year cycle & the trailer is paid up for 4). We do have income taxes though.

And a very strict policy on letting out of staters register there

[Malibudude]

California has got it bad, I know because I live in California right now. What is good a great is that I am moving back to Vegas and Nevada doesn't have an LUXURY TAX.

Interestingly enough there is no residency requirement in Nevada for boat registraion at the Department of Wildlife, but the Nevada DMV does require residency for the trailer. Just thought that was interesting for all you........ Just food for thought.

My boat is said to be stored in AZ right now, so I dodged the bullet this year..... but me thinks out of sate in NV might be a way to go..... Afterall, I do use it in NV primarily

At least thats what I'll tell the blood sucking &%$%$%^&*&***!!!!!.

And something else is store out of state as well..........

[stewart]

California has got it bad, I know because I live in California right now. What is good a great is that I am moving back to Vegas and Nevada doesn't have an LUXURY TAX.

Interestingly enough there is no residency requirement in Nevada for boat registraion at the Department of Wildlife, but the Nevada DMV does require residency for the trailer. Just thought that was interesting for all you........ Just food for thought.

My boat is said to be stored in AZ right now, so I dodged the bullet this year..... but me thinks out of sate in NV might be a way to go..... Afterall, I do use it in NV primarily

At least thats what I'll tell the blood sucking &%$%$%^&*&***!!!!!.

And something else is store out of state as well..........

Yeah, I milked that storage thing..... RV out of state, but officially can be in state now Got a bill, for old 05 LSV after a sold it, showed them out of state storage receipt, let off the hook.... and recently got audit for 06 247 and sent them the same storage receipt