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laveydayz
03-27-2006, 11:00 AM
How does the tax work on a used boat? If you buy the boat in California and transfer title/register it in AZ do you have to pay the sales tax to California?? I have gotten a few different stories on this. Anyone??

phebus
03-27-2006, 11:05 AM
I don't know the technogalities(sp), but I bought a CA registered boat in AZ, and paid no tax. In fact, when I went to register it in AZ, no mention was ever made of tax, all I had to do was show them the signed off pink slip from CA, and they registered it in my name.

Boatcop
03-27-2006, 11:27 AM
In Arizona sales tax only applies if bought from a dealer. Private party sales pay no sales tax.
If you bought it from a dealer in CA and paid CA sales tax, the invoice should show this, and Arizona won't require the tax be paid.
If you bought it from a dealer and had it delivered to AZ to avoid CA sales tax, then sales tax to AZ will be required before AZ will register it.

littlejake
03-27-2006, 11:35 AM
In Arizona sales tax only applies if bought from a dealer. Private party sales pay no sales tax.
If you bought it from a dealer in CA and paid CA sales tax, the invoice should show this, and Arizona won't require the tax be paid.
If you bought it from a dealer and had it delivered to AZ to avoid CA sales tax, then sales tax to AZ will be required before AZ will register it.
I JUST WENT THROUGH THE SAME THING AND BOATCOP IS RIGHT!

laveydayz
03-27-2006, 11:40 AM
I didnt think you had to when reg. in AZ. They (CA) collect sales tax upon transfer of the title so if you reg. in AZ then I would say no tax for sure on a private party sale. CA is outrageous for sales tax. Just curious as my brother is looking at a used Lavey...

Tremor Therapy
03-27-2006, 12:02 PM
So who has the lesser of the sales tax? And another thing, if I remember correctly, AZ registration fees went up significantly for non-residents so depending on the price of the boat you are going to buy, if may not be that big a difference to keep it in Cali and pay the luxury tax.
I am looking at 25 footer for around 35k and the tax is $2712 and $30 registration. Starting next year $30 registration + $350 luxury to be in Cali, while my old 25 was $263 for registration in AZ. So by paying the $380 I would never have to deal with the Cali officials when towing an AZ boat on a Cali trailer. The $117 dollars per year just didn't warrant the chance of being caught as I believe it is a $1000 fine plus the back taxes....but I am sure someone else has all of the exact details.

laveydayz
03-27-2006, 12:40 PM
So who has the lesser of the sales tax? And another thing, if I remember correctly, AZ registration fees went up significantly for non-residents so depending on the price of the boat you are going to buy, if may not be that big a difference to keep it in Cali and pay the luxury tax.
I am looking at 25 footer for around 35k and the tax is $2712 and $30 registration. Starting next year $30 registration + $350 luxury to be in Cali, while my old 25 was $263 for registration in AZ. So by paying the $380 I would never have to deal with the Cali officials when towing an AZ boat on a Cali trailer. The $117 dollars per year just didn't warrant the chance of being caught as I believe it is a $1000 fine plus the back taxes....but I am sure someone else has all of the exact details. The cost of the boat is 85k so the CA tax is a significant amount. The boat would rarely ever see a CA road as its stored and used out of state, so the trailer etc. should not be a problem.

voodoomedman
03-27-2006, 01:31 PM
The cost of the boat is 85k so the CA tax is a significant amount. The boat would rarely ever see a CA road as its stored and used out of state, so the trailer etc. should not be a problem.
The trailer plates have to match the vehicle plates that is all. Your boat can be registered in Kentucky and it doesn't matter as long as the trailer is registered in taxifornia. The trailer touches the road not the boat. If I have a utility trailer then it doesn't matter what kind of crap I have in there just that the trailer is registered in Cali. Especially since the law is that you are supposed to register your boat in the state that you use it 51% of the time on the water.

Havasu Cig
03-27-2006, 06:07 PM
The trailer plates have to match the vehicle plates that is all. Your boat can be registered in Kentucky and it doesn't matter as long as the trailer is registered in taxifornia. The trailer touches the road not the boat. If I have a utility trailer then it doesn't matter what kind of crap I have in there just that the trailer is registered in Cali. Especially since the law is that you are supposed to register your boat in the state that you use it 51% of the time on the water.
This is correct as wells as the info BC posted. I just went through a big ordeal with AZ over this. Also remember that the City of Lake Havasu has an additional 2% tax they add on top of the state tax which brings the rate to 7.6% which is not much different than California. I would do some research and find out what City or County area of Arizona would be the best to take delivery in, unless of course it is a private party (casual) sale.

Boatcop
03-27-2006, 06:45 PM
To ad to Havasu Cig's post, the AZGFD is only concerned with the 5.5% State sales tax. It's up to YOU and your conscience to pay whatever County or Local sales tax is required. All the AZ Dept. of Revenue does is collect the State Tax.
And a little known fact about Arizona. We have no State sales tax.
We have what is called a "Transaction Privilege Tax". That tax is levied upon the business that sells the product. Businesses have the option of passing that tax on to the customer, which nearly all of them do.

phebus
03-27-2006, 06:47 PM
Again though, if it is a private party sale of that used boat, you don't pay any tax

laveydayz
03-27-2006, 06:48 PM
The trailer plates have to match the vehicle plates that is all. Your boat can be registered in Kentucky and it doesn't matter as long as the trailer is registered in taxifornia. The trailer touches the road not the boat. If I have a utility trailer then it doesn't matter what kind of crap I have in there just that the trailer is registered in Cali. Especially since the law is that you are supposed to register your boat in the state that you use it 51% of the time on the water.
That was my understanding. Register the trailer in Ca. (which will get taxed) so it matches the tow vehicle and leave the boat AZ.

Havasu Cig
03-27-2006, 06:53 PM
To ad to Havasu Cig's post, the AZGFD is only concerned with the 5.5% State sales tax. It's up to YOU and your conscience to pay whatever County or Local sales tax is required. All the AZ Dept. of Revenue does is collect the State Tax.
And a little known fact about Arizona. We have no State sales tax.
We have what is called a "Transaction Privilege Tax". That tax is levied upon the business that sells the product. Businesses have the option of passing that tax on to the customer, which nearly all of them do.
Intersting...
BTW, The Arizona Department of Revenue in Phoenix will come after you for the 2% even if Fish & Game does not. :mad:

voodoomedman
03-28-2006, 07:26 AM
That was my understanding. Register the trailer in Ca. (which will get taxed) so it matches the tow vehicle and leave the boat AZ.
No luxury tax on trailers. Just pay the DMV which now there is the PTI registrations on and it's only a few bucks for what like 7 years or something. I don't think they bother with taxes on small values, just on large values. My waverunner is registered in California still because they don't tax me and all I pay is the 10 bucks every two years for registration. Now the boat is registered in Arizona because I'm sure San Bernardino county would be salivating at the glands to tax me on it. The beauty of it is I am within the law because I use it on Havasu which is both Arizona and California waters so I can pick and choose.