I have a question for anyone who can help. I’m buying a boat from a private seller in Kentucky. I also live in Kentucky. When we go to the clerks office to take care of the paper work will I have to pay sales tax? I’ve heard that I don’t but every item I’ve bought in state I’ve had to pay absurd taxes on when the title work is taken care of. If it isn’t sales tax that I’m paying then what is it?
Any insight would be great. Thanks!
KY has a stiff annual personal property tax. My boat and truck were four or five years old when I lived there and 400-500 each a year for registration.
I understand property tax and I understand that private sales under law aren’t supposed to pay sales tax. I bought a motorcycle a couple years back. Paid roughly $12,500 for the bike. Paid almost $700 in tax when I went to have the title changed over. The bike was bought in Kentucky. Doing the math it seems like it was sales tax that was paid.
I would call the correct agency tommorrow to verify if I were you.
Pm CaymasRodney. He is a retired boat salesman.
And he live in Kentucky he know.
my memory says, you will pay sales tax (when new) or property tax but not both in the same year. Ky taxes cars, boats and RV's annually as property tax. I believe the owner on Jan 1 pays the tax for the year even if they sell the boat on Jan 20th
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After looking at my receipts for what I paid on the bike it was labeled as usage tax. I thought sales and usage tax was the same thing?
One of the many things that make Ky suck like no otherOriginally Posted by rchafin294
I think sales tax and usage tax is the same thing. In 2014 as a Ky resident, I bought a used boat from a private seller in Missouri, and was not required to pay any sales tax. I'm not sure about buying within the state, but I'm guessing you would not pay sales tax. I'm not sure if it is still the same.
Last edited by mossie3; 05-15-2022 at 12:22 PM.
Sales tax at purchase, personal property tax at yearly registration.
This!!!
No, you should not have to pay sales tax in Ky buying from a private sale, if you were buying from someone out of state yes or from a dealer whether it be in Ky or out of state.
If you buy now, you will pay property tax next year when you license it for 2023, not before.
So, paying sales tax for out of state private sale changed since 2014?
You will absolutely pay 6% sales tax on the amount you tell them you bought it for. You can always tell them a lower number just tell the person you’re buying from ahead of time if you’re at the clerks office at the same time so you don’t both shout a different number when they ask the sales price. Only gonna save a little by doing this so sometimes not even worth lying.
If you buy privately there is no sales tax! It's referred to as 'owner to owner transfer'. I sell consignments so I know this to be fact. In my case the only way I'd have to charge sales tax is if I provided financing (which I don't). No sales tax on private sales, period. Your county clerk may have to call Frankfort to get lined out, but I already know. You will pay property tax when you have owned it a year and new registration is due. All you're required to pay now is registration and transfer fees...
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I sold a boat to my cousin and he says he did not have to pay sales tax. We both live in Kentucky.
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This was my experience. Bought jonboat new from dealer and paid sales tax. Last bass boat was person to person and no sales tax. Just transfer fee
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