If you live in AZ and buy a boat in CA...

[MagicMtnDan]

do you have to pay state tax on it?
(Note that AZ is an example - I'm asking if you live out of CA and buy a boat in CA, do you have to pay tax on it in your state?).
I've heard that some folks buy a boat and don't pay tax and I'm wondering if they're skipping on the tax or there's a "legal loophole."
Just wondering :D

[Kilrtoy]

You pay tax where you are a resident or take delivery

[HM]

Originally posted by MagicMtnDan
do you have to pay state tax on it?
(Note that AZ is an example - I'm asking if you live out of CA and buy a boat in CA, do you have to pay tax on it in your state?).
I've heard that some folks buy a boat and don't pay tax and I'm wondering if they're skipping on the tax or there's a "legal loophole."
Just wondering :D
Loophole sounds so evasive. They write the laws, we just follow them. ;) And yes, it is legal.

[HM]

Originally posted by Kilrtoy
You pay tax where you are a resident or take delivery
Since I incorporated in NV this year, I take delivery in NV with a ship-to in CA.;)

[TCHB]

If you buy the boat used you can avoid the tax if register it in Arizona.
The loophole on new boats is this;
1. Buy the boat and take delivery 3 miles out in the ocean.
2. Keep the boat in Mexico (Ensenda) for 90 days and use it a few times.
3. Now if bring it back into California you do not have to pay sales tax.
The governor of California has spoke about this last week and thinks it is ok becuase it saves jobs in California.

[Rocky]

I bought a used boat from a dealer in California (I live in AZ) . The boat had AZ registration and the trailer had California plates. The dealer got me out of sales tax on the boat but not the trailer. I had to take delivery paperwork to a notary in AZ to show i took delivery in AZ. I belive if you buy a AZ registerd boat from a dealer in CA they require you register the boat in CA.

[dkreuzen]

If you live in AZ and buy a boat or car from a private party you don't have to pay sales tax. If you buy it from a dealer you will pay sales tax for the state you register it in. It dosen't seen to matter what state you bought it in. Now if you register it in CA you pay tax one way or another no matter what. That's one of the many reasons I moved out of CA.
Dennis

[h2oski2fast]

If you take delivery of the boat from in California (from a dealer, that is also located in California) you have to pay sales tax. If you take delivery of the boat outside of California, whether it be someone drives (or tows) the vehicle out of the state or is shipped (bill of lading needed) then no sales tax can be collected. It's actually the dealers job to report the sales tax.

[SCOPE]

Here is some additional information for you.
http://www.weilaw.com/31_vesselpurchase.htm
http://www.weilaw.com/32_offshoredelivery.htm
http://www.scopeinfo.com/cig/tax-1.jpg
http://www.scopeinfo.com/cig/tax-2.jpg