Sales Tax on Refinancing/Sale

[bunz559]

I have a question for members that have any insight or experience. Location is California.

I have a rig that I still owe a loan on. I am looking to transfer or gift the boat to someone at the amount that I owe. This person will be taking over the boat by getting his/her own loan to assume the current amount. Does anyone know if taxes will have to be paid again on this rig?

Thanks in advance!

[Cheeseman]

Why not call the licensing bureau that handles boats, and see what they have to say?

[jimsch]

In CA the new owner will have to pay it when it is registered in their name.

[ssmithboats]

dont know of any state that will allow gifting to avoid sales tax

[grandbassslayer]

Also if its less than fair market value gift tax could apply. I think its called an arms length transaction.

[woppercatcher]

In Arkansas there is no sales tax when buying a used boat

[brushsjigs]

[QUOTE=bunz559;10648022]I have a question for members that have any insight or experience. Location is California. I have a rig that I still owe a loan on. I am looking to transfer or gift the boat to someone at the amount that I owe. This person will be taking over the boat by getting his/her own loan to assume the current amount. Does anyone know if taxes will have to be paid again on this rig?
Check with you license branch.
If CA is anything like IN, they will go by book value and not what they paid for it, and yes they will collect again.

[barbarian]

Sometimes you can gift to first family.

[wareagle24]

I was gifted a truck from my MIL 2 years ago. The only tax that I had to pay was for my tag when I put it in my name. This was in Alabama.

[The Bass Junkie]

I have a question for members that have any insight or experience. Location is California.

I have a rig that I still owe a loan on. I am looking to transfer or gift the boat to someone at the amount that I owe. This person will be taking over the boat by getting his/her own loan to assume the current amount. Does anyone know if taxes will have to be paid again on this rig?

Thanks in advance!

There are some loopholes....he can register it in AZ and pay out of state registration (something like $250) and avoid it. IDK if California charges on private party sales...I'd call and ask. My texas boat is even tagged AZ.

[lpugh]

Cant get around it in Ca, even if no money changes hands, Sale tax or use tax, they will go by the value of the boat or sale amount, whichever is higher and they determine the value. And as soon as the county you live find out you own it , will get a property tax bill for it as well, may take a couple of years to find this out and you be billed back to the year of purchase. At least it is this in Sacramento county, as I understand this most county's do the same on Ca

[Champ 2001]

Got that right Leon!

[OldTimer57]

I'm not aware of a state that will collect sales tax like that (other than the cesspool states like CA, NY, NJ, MA, etc.). You already paid sales tax once when you bought the boat. So long as it is an in-state sale, the buyer should not have to pay taxes again. At least that is the way it works here. If you move from one state to another, ditto. Alabama, for example, requires that I have a legal registration where I moved from, but that was it.

I have only personally dealt with Mississippi, Tennessee and Alabama, however. In those there is no issue of any kind with taxing and re-taxing.

[NoCAL]

lpugh has it right. When title changes hands they will look at the sales price, if reasonable that will be the amount sales tax is calculated on. If not, they will value it at DMV. The buyer will never see a charge for “sales tax” it will just be part of the registration fees.

NoCAL

[ford4wd08]

I'm not aware of a state that will collect sales tax like that (other than the cesspool states like CA, NY, NJ, MA, etc.). You already paid sales tax once when you bought the boat. So long as it is an in-state sale, the buyer should not have to pay taxes again. At least that is the way it works here. If you move from one state to another, ditto. Alabama, for example, requires that I have a legal registration where I moved from, but that was it.

I have only personally dealt with Mississippi, Tennessee and Alabama, however. In those there is no issue of any kind with taxing and re-taxing.

Don't know where in TN you say you don't have to pay sales tax on a boat when it trades hand, but any time a boat is sold, a Bill of Sale is required and must be produced so they can collect taxes on the sales price prior to registration being given.

[twofin]

Ca is going to charge sales tax unless it's a family member gift I believe. I registered non resident in AZ. It costs $270 year, but no sales tax on private party deals.

[ifishinxs]

dont know of any state that will allow gifting to avoid sales tax

Utah is one! I have gifted cars to my children. No sales tax.

[BMCD]

I believe Texas still allows limited gifting to family members.

[NoCAL]

Yes as noted, you can gift a vehicle to a family member without paying sales tax in CA. Just a small title transfer fee. Just did it with a car my ex gave me.

NoCAL

[lpugh]

Yes as noted, you can gift a vehicle to a family member without paying sales tax in CA. Just a small title transfer fee. Just did it with a car my ex gave me.

NoCAL

No smog inspection required either for ownership change to close family member unless it comes from another state