Location: 31 | muskiehunter2 - 5/13/2012 8:08 AM
if you buy a used boat in ILL you pay tax on the boat only not the total purchase price .also the IRS told me to use 6.25%.
Not sure if you mean from a dealer or private? I would assume privately since everything would have to be taxed from a dealer in the state it was purchased like Tom says. However, unless it's a prearranged price with the private sale, how did/would you determine how much for the boat and then how much for the motor/accessories/trailer/etc.) ?
I was told that if you purchase a boat and it has a motor attached, that IS considered part of the boat sale and taxed as such. However, if the motor is detached, you only pay for the hull... but you better have your ducks in a row.
I put this up on the other thread... "A pretty slick way to reduce the cost (at least if you buy it privately here in Illinois) is to buy the hull separately from the motor-s and accessories to save on taxes. The state only taxes the boat, if the motor is attached you pay tax on it too. If you go that route be sure to document everything properly (certified check and receipt for the hull)."
My last boat was purchased privately from a guy in Michigan, and I brought it back here to Illinois, I was VERY careful to document the purchase the boat and motor with separate bill of sale for each, and retained a copy of the certified check for the boat and submitted that with the application for the title so there was no doubt.
I strongly recommend not even thinking about cheating on taxes, (Illinois makes you swear to the purchase price on the application BTW) but on the other hand there's also no reason to pay more tax than is required.
Edited by Jerry Newman 5/14/2012 11:07 AM
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