Posts: 1405
Location: Detroit River | tcbetka - 5/13/2012 3:34 PM
I just paid 6% on a boat I bought in MI. I thought you paid sales tax in the state you lived and registered it...but the dealer told me they were just tagged by Mi, because they had been doing that. Apparently, MI decided that it was losing too much money on interstate sales, so I had no choice but to pay 0.5% more tax than charged by WI (including my county tax).
TB
That dealer should have charged you the lesser tax rate. In your case WI was the lesser amount & that's what should have been charged. This is nothing new that Michigan just decided to do. Most states have reciprocity agreements with neighboring states & MI & WI have that agreement with each other.
There are Michigan residents that buy those big RV's that cost over a 1/2 million from out-of-state dealers then register them in Montana (they have no sales tax) under a fictitious S-Corp. There are tax attorneys in Montana that advertise that they will do this for you to save paying sales tax & they charge $900 & up. This is illegal in most states that have a sales tax. As a tax auditor in Michigan we go after people that do this.
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