A friend is buying new boat that is currently titled / registered in Michigan. Owner lives in OH, however, boat will be docked at at Michigan marina. Does anyone know laws / regs regarding keeping michigan reg #s (since boat stays in MI) or Ohio registration (since owner lives in OH)? Does this influence which stat sales tax is paid to?
Which state to register
- Thread starter Boatndan
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He can check here: http://www.michigan.gov/dnr/0,1607,7-153-10365_10884-34770--,00.html (contact info) , but I'm sure he will find the boat must be registered in MI, where I expect the 6% sales tax would apply. That's "only" 1/2 of 1% higher than OH anyway.
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Son has boat reg.in MI, but lives in IN. He pays a pittance for 3 year registration and one time small lifetime trailer plate; whereas I have a boat reg in IN and live in IN--I pay a fortune yearly for reg plus 1/2 fortune for trailer plate yearly.
Moral: Lie, cheat, anything to keep it all in MI!
Moral: Lie, cheat, anything to keep it all in MI!
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Obviously the rules vary and there are some rules that are not well known and can bite you. For example, Tim R has a boat registered somewhere other than NJ where he lives. If the boat ever shows up in NJ waters wjile he still lives here, the sales/use tax is immediately due to NJ.
If you have a boat registered outside of FL but want to keep the boat there for more than a short time (30 days??), you register in FL with your homestate numbers and put a FL sticker on the boat along with your out of state sticker.
I think both requirements are more often ignored than not. Times are changing, however, and the failure to comply, when caught, adds not only to the tax revenue stream but also the penalty and interest revenue stream which in NJ can be substantial.
If you have a boat registered outside of FL but want to keep the boat there for more than a short time (30 days??), you register in FL with your homestate numbers and put a FL sticker on the boat along with your out of state sticker.
I think both requirements are more often ignored than not. Times are changing, however, and the failure to comply, when caught, adds not only to the tax revenue stream but also the penalty and interest revenue stream which in NJ can be substantial.
In mi. the seller is responsible for the sales tax. The boat should be titled and registered in Mi. The boat is then able to operate in Ohio waters legally. Usually you register in the state where you dock, or keep your boat most of the time.
Chief Alen
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My lake boat is reg. in NJ i use it only in Upstate NY. I trailer it up there and at the end of the 2-3 weeks i'm at my summer home, i trailer it back to NJ where it stays behind my house.
One could argue that the boat used in another state can be a second home.
One could argue that the boat used in another state can be a second home.
I agree that the boat should be registered in Michigan where it will be used however the buyer, not the seller, is responsible to fork over the sales tax to state of Michigan when he registers the boat in his name. Writing that check for $6000.00 to the Secretary of State 3 years ago was not pleasant. Don't even think of fudging the value. Sometimes they want to see the contract or bill of sale. If you bought a boat from a relative no sales tax is required to be paid in Michigan.
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I would think the property tax would be more of a reason to keep the registration in one state or another. After all the property tax is the annual gift that keeps on giving.
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I lived in Delaware where there is no sales tax and owned a boat on the Chesapeake bay in Maryland. Because the boat spent more than 6 months in Maryland I had to register the boat in maryland not Delaware.
The local authorities check boats regularly to see if they are kept in maryland. I had a friend with the same living situation get caught and he paid a 6k fine and still had to pay the sales tax in Maryland. Not worth the risk..
If a boat is trailered and is taken from state to state then you can register it in the state you live.
The local authorities check boats regularly to see if they are kept in maryland. I had a friend with the same living situation get caught and he paid a 6k fine and still had to pay the sales tax in Maryland. Not worth the risk..
If a boat is trailered and is taken from state to state then you can register it in the state you live.
To clarify my previous post the dealer pays the sales tax in Mi. He must be licensed to collect it. In a private sale the buyer pays a user tax. This is done for title purposes. Registration is a different process and comes later.
I lived in NJ up until a couple months ago and that is where my boat was registered. The Delaware River is the dividing point between NJ and PA. I live in PA now but I kept it registered in NJ since I'll be doing the majority of my cruising either on the Delaware River or NJ Coast.