IL Boat Registration Issues

[Franziskaner]

I recently purchased a 18' bowrider from a private owner in WI, brought the boat/trailer back home to IL. Sent the registration form and $52 fee to the DNR to transfer the title to my name. Soon after I got a return letter stating I am required to pay .0625% in taxes of my boat purchase before they will title my boat.

Unfortunately I need to pay nearly $500 required in taxes, before doing so I'd curious if I have other options?

For example, I do not believe it would be too difficult to title my boat in WI (recent topic on this forum), once I get an out of state title in my name, could I then do a title transfer to IL? Would this resolve any tax issues? Any advice from fellow IL boaters?

Compounding the situation, WI does not require titles/plates for trailers, IL does, this will prove to be difficult once I go to the DMV to register this as well.

Any advice would be appreciated.
Thank you.

 

[rockyrude]

Re: IL Boat Registration Issues

Welcome to iboats! There are no hoops you can jump through to get away from Illinois taxes. The tax is on the title transfer/sales tax on the transaction.

 

[Bondo]

Re: IL Boat Registration Issues

For example, I do not believe it would be too difficult to title my boat in WI (recent topic on this forum), once I get an out of state title in my name, could I then do a title transfer to IL?

Ayuh,.... I suppose you can try doin' a John Kerry, but I'm guessin' yer gonna have to pay the taxes at some point....

 

[Bamaman1]

Re: IL Boat Registration Issues

I'd just suck it up and pay the taxes. The penalty for getting caught is not worth it. It's just not that much $.

I bought a 4 wheeler (ATV) out of state, and never reported the sale. The State sales tax auditors caught it, and I had to pay the taxes and a penalty. It wasn't worth it. There again, we only have a 2 1/2% sales tax on motorcycles, boats and automobiles.

Now, if you left the boat up in Wisconsin, and never used it in Illinois--it's a different matter. Garaging location is where boats are usually titled/licensed.

 

[roscoe]

Re: IL Boat Registration Issues

You can title and register it in WI, but you will pay 5.5% sales tax to WI.

Then, if you get caught keeping it in IL, with WI registration, you are in deep doo doo.


If you are going to keep it in WI, then by all means, register it in WI.

Il is bad for this sort of thing.

And you know they are really in bad shape right now.

Good luck getting that trailer titled.

I have sold trailers to guys in IL simply because I had either a Manufacturers Cert of Origin, or I actually had a title in hand.

They make it impossible to reg in IL without a title.

The last guy drove 350 miles to get the $500 trailer.

 

[etracer68]

Re: IL Boat Registration Issues

I will add that, in WI, if the boat, and trailer is 3000lbs or more, it WILL (the trailer) have to have plates.

 

[bonz_d]

Re: IL Boat Registration Issues

You'd better check again. Wisconsin anything over 16' needs to be titled also so that boat should have a title to it. Also talking with Wisconsin DMV all trailers should be titled. It's just that trailers under 3000# do not need to be plated.

 

[Eazzy]

Re: IL Boat Registration Issues

If you paid cash you have a way out if you wrote a check pay the taxes

 

[halfmoa]

Re: IL Boat Registration Issues

If you paid cash you have a way out if you wrote a check pay the taxes

^^^This.

 

[roscoe]

Re: IL Boat Registration Issues

Paying cash will not get you out of the taxes.

Neither will trading or bartering.

They capture the taxes when you register the boat.

In some cases/states, they will tax you on the blue book value of the item.

 

[halfmoa]

Re: IL Boat Registration Issues

In IL they ask you how much you paid and charge you accordingly.

 

[Franziskaner]

Re: IL Boat Registration Issues

Thanks for everyone's kind advice considering I'm a new guy asking a not-so-ethical question. I posted this topic out of frustration yesterday. Having a cooler head today, I prefer to have the piece of mind and will pay the taxes. I did pay cash for the boat & trailer but I won't low ball the amount knowing that may bring the wrong kind of attention to my title application.

I'm certain I'll have problems registering the trailer. From the seller I only have a bill of sale, and the sellers WI title for the boat. No documentation whatsoever for the trailer. Trailer is a Larson EZ loader.

I'll need to go to the DMV to see what is now required to register the trailer. Let the "fun" begin.

Thanks to all.
Derek

 

[smokeonthewater]

Re: IL Boat Registration Issues

Well I can't speak directly to IL BUT here we deal with the same issue.... I'm in IN 15 minutes from KY... In Ky they don't have to title or register trailers but here we do. All we need is a bill of sale from a KY address and a police inspection and they title it in IN without any trouble at all.