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| Ok, I'm not out to cheat the system here (well maybe, haha) but I thought I would at least ask... a little preface: I live in Illinois. I just purchased a boat from a private party in Montana. I am 99% sure I'm moving to Minnesota later this year (august/september). Montana has no sales tax. IL has sales tax as well as MN. I don't want to have to register the boat in IL, then re-register when I head up to MN. I've read that, being an out of stater, I can register my rig in MN as long as I spend a certain amount of time on the water there. I base this on a discussion I read on walleyecentral. If I register the boat in MN, do I pay MN sales tax? I know if I register it in IL I pay IL sales tax. Just curious. Thanks for any advice, thoughts, etc...... |
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| Not sure how to get around your dilema, but just in case you do have to register in Illinois here is a little tip. The Illinois sales tax only applies to the boat (Hull only!). Therefore create an itemized bill of sale, make sure you give yourself the full value of the motor, trailer, electronics, and any additional add ons (who knows maybe you even found a deal where as long as you purchased the motor, trailer and electronics you got a hull for almost free  ) That will greatly reduce the sales tax and |
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Posts: 2037
Location: lansing, il | when i bought my boat 7 years ago the law was..you could register it in any state you wish as long as the boat is in that state for 6 months + 1 day. in otherwords you could be a illinois resident, but keep your boat in wisconsin and have a wisconsin registration on it! your address on the wisconsin boat registration would be your home address. |
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Posts: 427
Location: Roseau | In MN you dont pay sales tax on the boat, only the trailer.
Thanks |
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| Where did you here this? As I am getting ready to pay tax on my boat? That would save me a ton of money! |
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| Sorry my question is directed for itemized bill of sale in IL. |
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Posts: 734
| I am a MN resident, I purchased a boat from WI and I didn't have to pay tax as long as I said the boat was delivered to me. |
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| Bought our boat, trailer and motors new in MN, and registered it in my home state, only my home state does not register motors - savings of $900. sales tax right there.
Your insurance company may have something to say about what state it is registered AND stored in.
Beat the tax leeches anytime you can - especially from the social welfare states. |
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| I just purchased a boat in MN from a private party, and registered it last month.
Thanks |
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| The guy at the currency exchange told me about creating an itemized bill. He explained that only the hull of the boat itself is taxed, since that is the item that is actually getting registered. It will save you a ton of money. |
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Posts: 432
Location: mpls | Fisher,
Who did you have to register it with? Was it the DNR or the Dept of public safety(trailer)? I am buying a boat from a private party as well(in Mn.) and no one can tell me the procedure,the bank is clueless . |
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Posts: 427
Location: Roseau | Just bring everything into the DMV, they handled everything.
Thanks |
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Posts: 518
Location: Cave Run Lake KY. | dont register the boat untill the reg runs out, if you dont use the,boat dont register it till you use it. Find some place to keep your boat in MN and use that address for your boat registration. All you need is is a address for the state to send it to you. Go to the courthouse in the county were you want to keep your boat and they can register it there .Pay all the local taxes there. and yes just pay taxes on the boat or trailer not the motor. not as bad as it sounds. In Wisc. I went to the DNR. to register a boat In KY. the courthouse in the county were Im at same as drivers Lic. Take care Marv |
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| Just an FYI out there for anyone who read this previously, I had gone to the local currency exchange last year and was also told that I had to pay tax on the purchase price of the hull. I contacted the guy I bough t the rig from and we worked up an itimized list of everything, including the purchase price of the hull. Got everything registered and paid for and then this week I get a letter from IL Dept. of Revenue saying I'm being audited. I have since moved out of state and I can't locate my records which I had last year so now they want me to pay the back taxes on the 'estimated value' of the boat at the time of purchase which would be quite a bit higher than what I paid. So now I have to decide what to do. Go after the Currency Exchange guys or pay up. What a headache.... |
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| I was in the same boat. I to live in IL where sales tax is high, registrition is high, and you have to register the trailer and that is high. I really dislike il and if I can aviod giving them money I will. Appearently, they are going to get me anyway with the highest sales tax in the country at 10.25 percent on anything you buy including boats. So when I bought my boat and went to the state to get it registered and pay tax on it. My jaw hit the groung when they told me my bill was 1350 bucks. I reviewed the laws of various states, and decided to register my boat in WI. As long as it a state that you use it in the law allows you to register it there. My bill for living in IL and registring my boat in WI was 580 dollars and I don't have to register the trailer. Don't give the il govt any more money, they jujst piss it a way. |
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| To follow up with some research:
Wisconsin does allow you to live out of state and register your boat with them.
The registration document even states “State of Principal Use WISCONSIN”
The registration fee is a max of $36 Plus additional expenses.
Sales tax = 5%
There is even a provision for poeple who buy out of state and have to pay out of state tax.
CODE 4
Tax paid to another state (should submit photocopy of bill of sale or verification of tax payment to the other state.) Note: Sales tax paid to another state on the item reported on the application may be claimed as a credit to reduce the Wisconsin tax payable. Any county tax or similar tax paid in the other state may be claimed as a credit to reduce county tax payable. (Used for nonresidents that remain nonresidents but keep their ATV/Boat/Snowmobiles in Wis.)
Registations form
http://dnr.wi.gov/org/caer/cs/apps/9400193.pdf
Ill information
Boat reg cost $52 + additional cost
Boat trailer = $65 same a car! + you pay tax on the value of the trailer
Sales Tax = 7%- 10.25%
http://www.revenue.state.il.us/Publications/Sales/strrm/07012008/ST...
http://dnr.state.il.us/admin/systems/Boats/pdf/boatapp.pdf
Sorry I'm just sick of Illinois bs politics.
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Sales Tax & Registration - Private Party purchase