Watercraft ownership transfer in MN?

[jerdogg1]

I bought a used aluminum boat/motor/trailer from a private seller for a total of $1,000, and which is outlined in the Bill of Sale.

Went in to have the registration switched to my name expecting to pay sales tax on the boat. The lady at the DMV said that they do not charge tax on boats, only on the trailer because the trailer is a motor vehicle, the boat is not... this was news to me, but I paid the tax on the value of the trailer which she estimated at $100.

So all in all I paid for the registration transfer on the boat, the title transfer on the trailer, and sales tax the tax on the trailer... but no tax on the boat.

I'm confused as to why the state wouldn't try to reach it's hands into my pockets to collect sales tax on this purchase. Should I be expecting a letter from the state of MN charging me sales tax on the purchase of the boat?

 

[j_martin]

Re: Watercraft ownership transfer in MN?

I bought a used aluminum boat/motor/trailer from a private seller for a total of $1,000, and which is outlined in the Bill of Sale.

Went in to have the registration switched to my name expecting to pay sales tax on the boat. The lady at the DMV said that they do not charge tax on boats, only on the trailer because the trailer is a motor vehicle, the boat is not... this was news to me, but I paid the tax on the value of the trailer which she estimated at $100.

So all in all I paid for the registration transfer on the boat, the title transfer on the trailer, and sales tax the tax on the trailer... but no tax on the boat.

I'm confused as to why the state wouldn't try to reach it's hands into my pockets to collect sales tax on this purchase. Should I be expecting a letter from the state of MN charging me sales tax on the purchase of the boat?

I'm surprized they don't, but I haven't gotten a bill from them.

Everybody used to lie about the price of a used car or trailer, so now, if it's past a certain age, (I think 10 years) they just charge you ten bucks tax and don't ask any questions.

We better be quiet, though, or Moscow on the Mississippi wil fill the gap.

John

 

[jerdogg1]

Re: Watercraft ownership transfer in MN?

I'm surprized they don't, but I haven't gotten a bill from them.

Everybody used to lie about the price of a used car or trailer, so now, if it's past a certain age, (I think 10 years) they just charge you ten bucks tax and don't ask any questions.

We better be quiet, though, or Moscow on the Mississippi wil fill the gap.

John

I agree... see, I thought that I had heard that they charge you tax on the value, not what you paid for it, so that the state was able to make sure they were getting their (un)fair share... but maybe that was just for cars?