Do you pay sales tax if you buy a used boat in California?

[wantacat]

Just wondering if you have to pay sales tax or not, what if you register the boat in arizona as a non resident? how does all this work

[ChumpChange]

Just wondering if you have to pay sales tax or not, what if you register the boat in arizona as a non resident? how does all this work
Yes.

[Ziggy]

You'd have to buy private party from someone in AZ to avoid sales tax....if you buy it in Calif. mr taxman will take his bite.

[mirvin]

The Ca DMV will charge you a "Use" tax upon changing title & registration etc. I think it's 10%. That's why I only paid $2500 for my boat.....with a blown motor and all.......... :jawdrop: :D
I don't know how it works in AZ.
mirvin

[HCS]

Everything in Crowdifornia is taxed.

[Ziggy]

Everything in Crowdifornia is taxed.
Don't you mean Taxifornia? :D :D

[BoatPI]

I believe if you purchase the boat in CA, and gain title, then immediatley transport it to AZ, the Game and Fish will not collect sales tax. Legally u would have to use a licensed interstate carrier, the same for a car, and have them transport it to AZ. Then, in the eyes of the CA law, you took possession out of state. AZ GAme and Fish have a great website where u can download an application for title. Call the Kingman office and have them determine the fees, etc. That office is very helpfull. You may not need to take the boat to Kingman, just re-title via mail.
I have been "told" that if a private part sale is done in CA for a car, and you immediatey drive the car to LHC, then have it VIN inspected at the AZ DMV, they WILL NOT collect sales tax since it was a private party sale.
Remember, it is CA looking for the MONEY, NOT AZ.

[mirvin]

Don't you mean Taxifornia? :D :D
Don't you mean everything is crowded in taxifornia??
:notam:

[beer hunter]

Just wondering if you have to pay sales tax or not
Yes, but not much if you can get a receipt for one dollar ;) :D

[INSman]

Not to mention the "Property Tax" bill you will get every year for I think 1% of the boat purchase price !! :devil:

[Captain Dan]

Not to mention the "Property Tax" bill you will get every year for I think 1% of the boat purchase price !! :devil:
That's why we register our boats in AZ and our trailers in CA.

[Ziggy]

I believe if you purchase the boat in CA, and gain title, then immediatley transport it to AZ, the Game and Fish will not collect sales tax. Legally u would have to use a licensed interstate carrier, the same for a car, and have them transport it to AZ. Then, in the eyes of the CA law, you took possession out of state. AZ GAme and Fish have a great website where u can download an application for title. Call the Kingman office and have them determine the fees, etc. That office is very helpfull. You may not need to take the boat to Kingman, just re-title via mail.
I have been "told" that if a private part sale is done in CA for a car, and you immediatey drive the car to LHC, then have it VIN inspected at the AZ DMV, they WILL NOT collect sales tax since it was a private party sale.
Remember, it is CA looking for the MONEY, NOT AZ.
I tried to do that with my boat, but the laws apply differently to boats than cars. If you are a Ca resident you basically can't avoid the sales tax/use tax. Once that seller turns in his release of liability and the buyer is a Ca. resident he should be taxed(may not happen overnight), regardless if he registers the boat in AZ....he will however not be "Property Taxed" on it annually if its stored out of state and used 50% or more out of state.
I can transport a new car out of state with a Bill of Lading, the customer needs to register that car at a legitimate non-Ca address not to pay any tax in Ca.
Ca. HAD a 90 day test period where if certain conditions were met you could have the car re-enter Ca. and not pay tax...Thats gone now, it takes a 12 month period now......but again, this applies to cars and boats are looked upon differently.
His best bet is to find a AZ private party sale.

[BoatPI]

I agree Ziggy, but the release of Liab. was sent in with a CA address! That would not have occurred if you provided to AZ address. And all bats are off if a common carrier, icc licensed is used with a bill of laden. And I beleive DMV will back me on that, the truck transport. Or buy it in NV.

[Ziggy]

I agree Ziggy, but the release of Liab. was sent in with a CA address! That would not have occurred if you provided to AZ address. And all bats are off if a common carrier, icc licensed is used with a bill of laden. And I beleive DMV will back me on that, the truck transport. Or buy it in NV.
Right-T-O...............but the inquiry originally stated he wants to register it in AZ as a non-resident.......
Hear-ye, hear-ye, I hear the tax man a comin' :D :D

[prosthogod]

Wantacat sounds like a cabinet maker who wants to buy a 28ft Magic in Az., use a buddies address to reg. here and then keep it in Ca. If I am wrong I appoligize in advance.

[BoatPI]

He can register it as a non resident in AZ. he just pays a higher useer fee/registration to the Game and Fish in AZ. They are very helpful, just call the Kingman office.

[TCHB]

Yes PI is correct.

[Boatcop]

If you buy a boat from a private party, whether in AZ or CA, AZ does not collect any sales tax.
However, If you buy a new or used boat from a dealer, Arizona demands that proof of sales tax was paid. Either in California or to the AZ Dept. of Revenue.
If the AZGFD sees that the title or bill of sale is from a dealer, then they won't register it until the sales taxes are paid.

[Magnuman]

If I live in CA but BUY a boat in AZ, will I be charged sales tax when I register it in CA?
Does buying from a dealer or private party in AZ make a difference?
Thanks.

[INSman]

That's why we register our boats in AZ and our trailers in CA.
I figured that out my second time around !!!! :hammerhea

[INSman]

If I live in CA but BUY a boat in AZ, will I be charged sales tax when I register it in CA?
Does buying from a dealer or private party in AZ make a difference?
Thanks.
Yes to the top and No to the bottom I believe

[Huckleberry]

I'm fighting this battle right now. Heres the skinny:
You must purchase and take delivery of the boat OUTSIDE Taxifornia.
You must purchase AND take delivery of the boat outside Taxifornia.
You may not bring the boat inside the state for any reason at all, for any amount of time at all for one full year!
You must be able to provide proof to the greedy fockers that you store the boat outside the state, and use it EXCLUSIVELY outside the state of Taxifornia. This includes having rental receipts, gas receipts, moorage receipts, repair/maintenance receipts.
They then want you to show them you paid sales/use tax AND property tax on the boat where you bought it or where you use it.
IF, and it appears to be a HUGE IF, you jump though all the right hoops they MIGHT exempt you from paying the sales tax and property tax.
You must also have a bill of sale and letter from the person/dealer that sold you the boat stating where and when the delivery took place.
They have really gotten strict on this, trying to squeeze every last dollar out of us Californians. There's a few websites that will help you on this. I'll try to find them and post links.

[Kilrtoy]

You may not bring the boat inside the state for any reason at all, for any amount of time at all for one full year!
.
This is not true

[Huckleberry]

Here's the letters the tax gestapo sends ya.
http://www2.***boat.com/image_center/data/500/69letter_1.jpg
http://www2.***boat.com/image_center/data/500/69Letter.jpg
According to the person handling my case they said it cannot have been brought in the state at all during the first 12 months of ownership.

[Kilrtoy]

I have that same letter EXCEPT DETECTIVE you are leaving off the last paragraph of the letter....
In a nut shell it can come into the state for repair retrofit or modification and no more than 25 hours are log on waterways.....
I think you should have had a notary observe the transfer of ownership in AZ, now you have their State documents to show the state....

[Burley1]

Oh and lets not forget the yearly tax collector bill you get for luxury tax
BASTARDS!! :mad:

[SDLifesaver]

Az is a non title state so there is no such thing as a pink slip in AZ. The sales taxes are less in CA than AZ but the registration is much less in AZ than CA and AZ has no annual luxury tax like CA does. Confused yet. We did this a few years ago and I just helped a friend do it last month with his new baot because the place he bought from was clueless about out of state registration. Banks/Credit Unions sometimes have issues with the non title policy because they don't get the pink slip when they pay the money on the loan. When you buy a boat in AZ as people have mentioned from a private party there is no sales tax and if you bring it back to CA to register you do not have to pay. My .02

[Kilrtoy]

Az is a non title state so there is no such thing as a pink slip in AZ. The sales taxes are less in CA than AZ but the registration is much less in AZ than CA and AZ has no annual luxury tax like CA does. Confused yet. We did this a few years ago and I just helped a friend do it last month with his new baot because the place he bought from was clueless about out of state registration. Banks/Credit Unions sometimes have issues with the non title policy because they don't get the pink slip when they pay the money on the loan. When you buy a boat in AZ as people have mentioned from a private party there is no sales tax and if you bring it back to CA to register you do not have to pay. My .02
This is not true, AZ TAX IS ALOT LESS especially if you dont register it in havasu

[SDLifesaver]

AZ sales tax is 7.85% and CA is 7.75. Not much more, but it is more. I know there are fee's that CA has that AZ doesn't but I said sales tax. Your a high roller, you should know this stuff.

[SDLifesaver]

Let me edit my last post a bit. I went to the AZ Tax website and the state tax varies by county. 5.6% is the lowest and it goes all the way to over 10%. 7.85 is Mohave County. Havasu, Bullhead, ect. I guess it matters how much money you are trying to save as to which county you use to buy your boat? Sorry Killer, your still wrong. Typical cop not doing his homework. Kidding.

[Huckleberry]

I have that same letter EXCEPT DETECTIVE you are leaving off the last paragraph of the letter....
In a nut shell it can come into the state for repair retrofit or modification and no more than 25 hours are log on waterways.....
I think you should have had a notary observe the transfer of ownership in AZ, now you have their State documents to show the state....
Kilrtoy,
This is the ENTIRE content of these two pages of the documents I was mailed. There was no last paragraph that you are describing. There is also the form used to file. If your letter says something different, will you either post it or PM it to me. I'd love to have it for further ammo if I need it later on in the battle. Perhaps my letter is different because the boat is CG Documented, not registered in AZ???
Thanks for the help.

[jdogginla]

Anyone elses brain on overload here...........geeesh :hammer2:

[burtandnancy]

After over 30 years of having AZ boats, I finally moved them to NV. AZ raised their non-resident fees, although the registration by mail has always been very user friendly. Selling a boat in NV to another NV resident is a no tax event and fee's are very low, $50, $75 and a max of $100 for anything over 40 feet. You do all this at NV Dept of Wildlive (NDOW). However, do anything you can to not register a trailer in NV. Due to the excessive growth of NV population their DMV is nearly impossible.

[Boatcop]

Let me edit my last post a bit. I went to the AZ Tax website and the state tax varies by county. 5.6% is the lowest and it goes all the way to over 10%. 7.85 is Mohave County. Havasu, Bullhead, ect. I guess it matters how much money you are trying to save as to which county you use to buy your boat? Sorry Killer, your still wrong. Typical cop not doing his homework. Kidding.
All the AZ game and Fish Dept is concerned with is the State Sales Tax of 5.6%. If you take delivery from out of state, you pay that directly to the Arizona Dept of Revenue. They then give you a form that states that the Tax has been paid and AZGFD will issue the registration.
In the case of motor vehicles, the MVD will collect the 5.6% tax when the vehicle's registered. (Unless you show that a Sales tax was paid in the state of purchase)
You're also supposed ;) to go to the County Treasurer's Office and pay whatever County/City sales tax is called for in the County you take delivery of the boat/vehicle in.
A quick note on Sales Tax in AZ.
As a General Rule, the "Sales" tax is actually a "Transaction Privilege" tax. It is levied on items that the business owner sells for the privilege of doing business in Arizona. The law permits the business owner to pass that tax on to the customer. So it is, in essence a sales tax.
The reason it's tacked on to the end of the sale, and not reflected in higher prices, is so it's easier to report and pay the tax.
You'll see a lot of "sales" going on in AZ that claim "We'll Pay the Sales Tax!". Actually they pay it anyway. The "Sale" is just you getting a 5.6% (or whatever) discount.

[Kilrtoy]

Let me edit my last post a bit. I went to the AZ Tax website and the state tax varies by county. 5.6% is the lowest and it goes all the way to over 10%. 7.85 is Mohave County. Havasu, Bullhead, ect. I guess it matters how much money you are trying to save as to which county you use to buy your boat? Sorry Killer, your still wrong. Typical cop not doing his homework. Kidding.
Actually Im right
8.25 where i live, Who you calling a big baller MR O.C. and if you register it in Phoenix, it is alot less than what you qouted.....
So as usual a fireman blowing the water too quick again

[Kilrtoy]

Here is one link
http://www.boe.ca.gov/pdf/pub101.pdf

[Kilrtoy]

Here is the link Publication L-129
it is at the bottom of the page
http://www.boe.ca.gov/news/pdf/L129.pdf

[Huckleberry]

Thanks for the links. #L129 will help me out! I didn't have/get that one! :cool: