Sales tax question?

This topic has 7 replies, 4 voices, and was last updated 10 years ago by smbass77.

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May 21, 2016 at 7:59 pm #392121

Ajjean073
Participant

Been a while since I bought a new boat. Seems like last time I did I bought the boat new in Missouri and dealer did not require me to pay sales tax and all I had to pay tax on to register in Arkansas was the sales tax on the trailer? Am I remembering correct? What can I expect now if I bought a new boat from a dealer outside of Arkansas?

May 21, 2016 at 8:02 pm #392123

Bass Cat Boats
Keymaster

That is correct at least if buying from Texas. And if you can get the dealer to break the invoice up and write the price of the trailer for less than $1500 you wont owe any sales tax at all. Good luck with it. Purchased new 5/4/15Bass Cat Sabre Vision EliteMercury Pro XS 150MotorGuide 75lb Tour EditionHumminbird – Stock (will be changing soon I hope)

May 21, 2016 at 11:44 pm #392126

Bass Cat Boats
Keymaster

Used that would be correct and a trailer used would potentially be below the threshold of taxes. It could also be right on the line of taxes. BCB

May 22, 2016 at 12:11 pm #392129

Bass Cat Boats
Keymaster

I didnt pay taxes on the boat or motor itself in Texas since I was bringing the boat to Arkansas. The only taxes I incurred were taxes on the price of the trailer, which wasnt much on my Sabre in the breakdown. Actually saved quite a bit since in Arkansas the boat and motor sales tax are point of sale taxes if Im not mistaken, which is 8.25% I think where I was looking at in-state. I dont think Ill buy another boat in-state due to taxes if I can help it. On a used boat I dont think it matters within the state. Youll pay only the trailer sales tax if valued over $1500 I think. I may be wrong on the amount though. Id call your local govt office and make sure. Purchased new 5/4/15Bass Cat Sabre Vision EliteMercury Pro XS 150MotorGuide 75lb Tour EditionHumminbird – Stock (will be changing soon I hope)

May 22, 2016 at 2:40 pm #392132

Bass Cat Boats
Keymaster

$4000 on trailers for tax limits now. It was $2500 before.

May 22, 2016 at 5:39 pm #392135

Ajjean073
Participant

So, just as long as I can get out of state dealer to break down the sale of boat and trailer the most id have to pay taxes on is $4000 trailer?

May 22, 2016 at 6:38 pm #392138

bwp777
Participant

AR only titles, therefore requires tax, on the trailer. as has been stated. below $4k and you are safe. the assessment office wants the ser#s for each trailer, boat and motor and the DMV will also ask about specifics of the complete rig. this is why the dealers (in AR) will normally promote”NO SALES TAX” to get you to bite. or get hooked.

May 23, 2016 at 3:19 pm #392141

smbass77
Participant

you may want to check with your local tax agency for your county. I bought my boat in SC, which doesnt require collecting of sales tax. However, my county in GA requires I pay tax on personal property, so i did. Ive heard horror stories of people from GA who bought a boat out of state and didnt pay sales tax. Well, the county put liens on their house (and added penalties) for not paying the GA sales tax. Most didnt know until they tried to sell their house. What would have been a $3-4,000 tax bill ended up costing them much much more years later. better safe than sorry
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