Out of State Purchase of a boat

[JasonL31]

I live in Colorado currently and I am looking to purchase a boat. The boat I am looking at is with a private seller in Chicago. However I plan to primarily use the boat in Michigan which means I need to register the boat there. Who do I pay sales tax to on a transaction like this? Colorado, Illinois, or Michigan? I am trying to understand the sales tax rate as well.

 

[alldodge]

My opinion (note opinion) is it would be where you will live. If the boat will not be moving until you move to Michigan then probably there. Now if the boat is documented, then there are other issues, and tax may or may not be one of them

 

[southkogs]

Someone from Michigan can offer an opinion, but I would suggest that you call the MI Secretary of State and whomever handles boat registrations in Colorado and have them tell you.

When I bought my boat out of IN, I didn't have to do anything with the state of Indiana. I paid taxes to the state of Tennessee when I registered it here.

Welcome aboard.

 

[Scott06]

Always pay tax where/when you register it. Generally most states require in state regisatrtion if it is in the state for more than 60-90 days.

 

[tpenfield]

:welcome: to iBoats . . .

I vote for Michigan. Check with the authorities there, but usually (usually) you pay tax to the state where you register the boat.

Also, be cautious on the purchase that you are getting the proper paperwork from the seller that is issued by IL and required by MI. Make sure the seller has the proper paperwork in hand before you buy. It is unlikely that you will get it after the fact.

 

[dingbat]

Taxes are paid when and where you register the boat.

States may also have usage requirements. A boat registered in Delaware can not be moored or stored in Maryland for more an X number of days a year. Actively enforced by the State of Maryland

 

[ahicks]

Taxes to Mi. at 6%

I would advise making sure your paperwork is in order as well. I got into a real mess with a title on a sale involving a divorce one time that took months to sort out. Easiest way to avoid it is to make darn sure the person selling the boat is the same person whose name appears on the title. Make them prove it! Titles in corporate or partnership names, or titles with a husband and wife are named, are both potential trouble spots. The guy you are buying it from has to have the right to sell it!