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Posts: 485
Location: On my favorite lake! | Illinois resident buying boat out of state. What is the process and which state do you pay tax to? |
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Posts: 1663
Location: Kodiak, AK | It depends on who you're buying it from. If you buy it from a dealer, you'll pay tax to the out of state dealer. If you'r buying person to person, you likely won't pay them tax, unless they have a tax number or business license or whatever that would allow them to collect tax. Then when you bring it back to IL, you'll pay tax there if you didn't where you bought it. If you buy it at an out of state dealer, make sure they give you a reciept with tax itemized, so you can prove that you've already paid tax on it. I just went though this here in MI with a boat I bought in WI, so these are MI laws as I know them. Each state is different, and some states will charge you tax even if you paid tax in the state you bought it in!! |
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| what fly describes is accurate for IL where you live as well; if you pay tax to an out-of-state dealer, make sure the purchase order/receipt itemizes the tax. when you register your boat in IL there is a form you use to show that you've already paid tax to a different state. if IL tax is higher than where you bought it, you do have to pay the difference.
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Posts: 1663
Location: Kodiak, AK | Aren't tax laws like that just ridiculous? "Well if our taxes are more, you still have to pay the difference..."
I'm active duty, so registering and titling trucks and boats in different states is pretty common. My truck is titled and plated in Alaska where I'm a resident, as is my boat trailer, but my boat has to have MI numbers, so I had to get it registered and titled here, and it was a mess. I don't know from first hand experience, but some buddies who've been stationed in CA have told me that even if you paid tax on a truck in another state, and then you go to title/plate it in California, you STILL have to pay CA sales tax on it! Needless to say, you don't see many California plates in the air station parking lot. |
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Posts: 96
| I'm from MN and bought mine in SD. Seller had to pay tax on the sale. I had to pay tax on the trailer only (weird, but I didn't complain) + registration, etc. Like the guys above said though...each state is different.
Edited by Tonka Boy 5/22/2009 12:48 PM
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Posts: 485
Location: On my favorite lake! | With Illinois I would not put anything past them that is why I am asking. |
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Posts: 814
| Lambeau, is correct. I live in Illinois, bought my boat in Minnesota from a dealer, I paid the Minnesota tax, then came home and paid the tax difference, and titled everything in Illinois. A little hassle but was worth it for sure, I saved over 3 grand for the same boat by buying in Minnesota, so sometimes it pays to travel a little. Mike |
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Posts: 191
| FYI do not register your boat in Illinois. Register in wisconsin. You do not have to live in wisconsin to register your boat there. It will save you thousands of dollars. + Plus then do not have to register the trailer. I saved over 1700 dollars between tax and registration. I called WDNR to validate and they said as long as it is the state principle use that you can do it. You do not even need a wi address.
The renewal fee is about 40 dollars cheap to if I'm not mistaken as well.
my 2 cents
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Posts: 468
| How did you go about registering in Wisconsin without a Wisconsin address? I'm about to buy a boat from my friend in Wisconsin but live in illinois. I could easily do most of my fishing in Wisconsin. |
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Posts: 814
| cbuf, so if I live in Illinois and not in wisconsin where do I register it to If I don't have a sconny addess? |
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| Wi allows you to use your IL address. It looks like they change the form a bit, and now you have to specify the county where it is used / kept for tax reasons, but the column says "State of Principle use WI" Since i only use my boat in illinios to test it and get it ready for the season, the state where I use it is WI I feel it is just. Attached is the form. I talked with a man from the WDNR, and he said most people that have lake houses are from other states so they allow people not from WI to register in WI to add to there revenue.
http://dnr.wi.gov/org/caer/cs/apps/9400193.pdf
The added bonus to me is the fact that the trailer doesn't need to have a plate, or retitled, registered, or a sticker, saving you saving 45 bucks a year in renewal.
For those of you that live in Cook Country this is a no brainer. I could not imagine paying 10.25 in sales tax vs 5%.
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Buying boat out of state