Financial Question please help

[buckrub13]

Heres a question for you guys. I'm buying a boat and I have a trade in with a clean title. How do they figure the sales tax. Do I pay tax on the cost of the boat or the amount that I gave them after the trade in. Please help as I am picking my new boat up at 11:30A.m.

[Skeeter pilot]

I am pretty sure you pay the tax on the boat.

[PSM207]

It should be on the difference.

[Jason Hale]

You only pay tax on the difference.

Ex.

New boat 25000
Trade 10000
Difference 15000

You only pay tax on the 15000.

[07SkeeterZX225]

Here in VA you have to pay tax on it all. I bought my boat in TN and had to pay sales tax on the boat, plus the trade in of my old boat. So basically I pad tax on the old boat when I bought it and then paid some tax on it again when I traded it off

[Jason Hale]

Things are done a little different in VA then. That's the only one I have ever heard of where you pay tax on the total and not just the difference. Like you said, you already paid the tax on the trade when you bought it the first time. That sux. I was just telling you how it works here.

[PSM207]

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by SkeeterSX190 &raquo;</TD></TR><TR><TD CLASS="quote">Here in VA you have to pay tax on it all. I bought my boat in TN and had to pay sales tax on the boat, plus the trade in of my old boat. So basically I pad tax on the old boat when I bought it and then paid some tax on it again when I traded it off </TD></TR></TABLE>

Something doesn't seem quite right with this transaction. I could understand paying sales tax in TN, then having to pay a use tax in VA, but not sales tax on both the new and old boat.

[IFinallyBoughtABoat]

Its only the difference in MO (at least thats how it was on my truck, I didn't make a trade in on my baot...)

[buckrub13]

Well I believe I was overtaxed. I took delivery of the boat this morning. Any suggestions on what to do now? I mentioned this to the dealer and he said I was incorrect.

[PSM207]

Did you buy the boat in VA, yet you live in KY?

[buckrub13]

Bought the boat in Ky and live in Ky as well.

[jasonb01]

I know with automobiles, if for instance you buy a truck that is 10,000 and you get 2,000 for your trade. You pay tax on 8,000.

[buckrub13]

I just talked to a friend of mine that bought a boat from the same dealer and he only paid taxes on the difference. I hope it was just a accident and not someone trying to get over on me. Looks like another trip to the dealer on Monday. I don't know about you guys but I can't let $667.00 go that easy.

[PSM207]

I couldn't, nor wouldn't let $667.00 get away easily. Sounds like an error to me. Be diligent.

[fishin couillon]

I know this isn't a boat but in Louisiana, when you registar an out of state vehicle to get new LA tags you have to pay taxes on the value of the vehicle even though taxes were already paid when you bought the vehicle in that state. So it could be true what he is saying.

[07SkeeterZX225]

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by PSM207 &raquo;</TD></TR><TR><TD CLASS="quote">

Something doesn't seem quite right with this transaction. I could understand paying sales tax in TN, then having to pay a use tax in VA, but not sales tax on both the new and old boat.</TD></TR></TABLE>

I could have paid the sales tax in TN (not sure what their rate is) but when I registered the boat in VA, I would have had to pay the difference to VA. Really screwed up the way it works. It took almost 2 weeks after I purchased the boat before I could get an exact answer from the VADGIF on what I needed to pay, etc. I think the tax rate in VA was 2 or 3% but no more than $2000, or something like that.

[Blanked Again]

This is a real good question. I would think that you would be paying tax on the sales price because that is what it actually costs. The trade in is basically putting money down on it. If you went to the grocery and rang up $100 and paid cash, you would still be paying tax on the $100 of goods. Let us know the outcome.

[Skeet'r89]

Here in MD you would be paying taxes on the selling price of the item. Now the only way to get around that is to have had the dealer nock the entire price of your trade off of the sales papers and no mention of a trade take place on paper. More or less he could have lowered the (selling)price of the boat and given you less for your trade. That would have lowered the amount of taxes you would be required to pay because the selling price was lower. The dealer can only lower the price of the boat to a certain point because after so much he would be selling the boat way to far under value and the state would then suspect that he was cheating them out of money.

[sawbuck]

Hello, I purchase my Skeeter in NC. You pay tax to Virginia Department of Game and Fisheries, 2% on The boat and motor before the trade in, less the add on's. Then you pay tax to DMV on the trailer. My trade in was not a deduction. Tax on my Trton was $520, one year later tax on the Skeeter was $937. Trailer tax $90. If you want to fish they got you.

[Matt Plapp]

Like I mentioned in the IM you sent me, I'm not 100% sure because I don't mess with that stuff. But in the past you would pay tax on the difference. Ohio has recently changed but I'm not sure about KY. If your dealer overtaxed you then it should be no big deal to refund the difference. What Skeeter did you end up getting?
I know we have made the sales tax mistake on other states before and it's no big deal to refund the difference. You should not have any issues. I'll check on Monday to see what ky does for sure. They don't let me mess with that stuff, I'd just mess it up.

Matt