Looking to Buy a Boat in CA and Bring Back to AZ. Are there CA taxes on Private sale?

[Lofty78]

I'm interested in a boat in South Lake Tahoe CA and want to buy it, but being told I will have to pay 8.85% sales tax which is ridiculous considering AZ has no sales tax on private party purchases. Can anyone point me in a direction as to how I might avoid this? I was told by some at the CA tax Department (forget what it's called) that if I make the purchase on AZ soil there would be no taxes... Problem is, the owner lives in SF bay area and will be driving out to Tahoe to make the sale... he may not be willing to drive to AZ to make the sale. All input is appreciated.

 

[southkogs]

What happens if you buy the boat in Nevada?

Welcome aboard.

 

[Lofty78]

As far as I know, there are no private party taxes in Nevada, that may be the answer, but I was hoping to get some real world experience to answer

 

[GA_Boater]

Who says you have to buy the boat in CA and transfer the title in CA? The in CA title transfer is what triggers the tax. As long as he signed in the right place, you can then have it put in your name in AZ or where you live.

You have to worry about the trailer too.

 

[bruceb58]

The tax gets collected when you register it if this is a private party sale. CA won't be involved at all.

 

[tpenfield]

Who in the CA state authorities is going to know that you bought a boat? :noidea: We won't tell anyone.

This sort of question comes up all the time and the typical answer is you owe the taxes to the state where you register & title the boat, what ever their taxes are.

 

[Scott Danforth]

you pay taxes in California if you live in California and register it there.

 

[tpenfield]

Found some legalese about the CA taxes on vessels. You are exempt because you are purchasing for use outside of CA.

"Purchases for Use Outside California
Sales tax generally applies to the purchase of a vessel in California from a vessel dealer. As an exception, sales tax generally does not apply to the purchase in California of a vessel over eight feet in length that is not propelled solely by oars or paddles, provided the seller is a private party who is not engaged in the business of selling vessels California. Instead, the purchaser is generally liable to pay the use tax to the state.

Nevertheless, in such a use tax transaction, the purchaser is not required to pay California use tax if the only use of the property purchased in California is to remove it from the state and it will be used solely thereafter outside this state. No other use can be made of the property."

 

[Scott Danforth]

no different than buying a boat in Missouri to register in Wisconsin (you pay Wisconsin tax in this case)

or buying a car in California and registering it in Florida (you pay Florida tax in this case.... and shipping .... you pay shipping)

 

[fishrdan]

I went through this 8 years ago, bought my boat in CA and towed it directly back to NV the same day. This was from a dealer and they didn't collect the tax, online purchase and I paid the balance in cash while picking up the boat. Years later, the CA department of taxation (or whatever) sent me a letter the certify that the boat was immediately removed from CA, or something to that affect. So I didn't have to pay CA tax.

I did have to pay tax when I titled the boat in NV, go figure.... But it was less than what it would have been in CA.

Meet up with the seller in Stateline, NV to perform the sale, it's a stones throw from South Lake Tahoe, CA. Not sure of the tax implications, but you won't be buying the boat in CA.....