Need some help, out of state purchase

[Mhays26]

Looks like I will be buying a new (used) boat soon from out of state. How will this work with our tax laws in Arkansas? If i buy from a dealer in Texas, will I have to pay their sales tax? Or will I still get to pay Arkansas taxes, on just the trailer?

Thanks for the help, i appreciate the break down

Matt

[wildkat7]

I bought mine in St Louis, MO. I paid for only the boat package. No taxes, license fees, etc. We don't pay sales tax on used boats in Arkansas, so you would only have to pay to register the boat and trailer. You pay taxes where you register the boat.

[reeldeal]

That's not how it worked on my deal. I bought a used boat from a dealer in Alabama. As long as you buy a used boat from an individual you are exempt from sales tax, however if you buy a used boat from a dealer your subject to sales tax. There are some loop holes though. You are subject to pay sales tax on any value above $2,500 on your trailer, and all the value on the boat and motor. Equipment is not taxed. Needless to say my trailer was valued at $2,450 and I had a crap load of expensive equipment like electronics, power pole, etc., if you know what I mean. Hope this helps.

[wildkat7]

Guess it may depend on the state then...because they specifically told me that since I was purchasing it from out of state, that I would handle all the licensing, registration, and taxes (if any) when I registered it back home.

[reeldeal]

That's what I did. I had to pay the Arkansas sales tax on the trailer, boat, and motor values as they were shown on the invoice "bill of sale" when I registered my boat here. Not to say that they didn't screw up cause while I was registering this boat I found out that they charged me sales tax on a used boat I bought from an individual in OK the prior year when they shouldn't have. I wrote a letter to the state and got that amount refunded plus 10% interest if you can believe that.

[weekend warrior]

there is no sales tax on used boats in AR. i have bought several boats and you will have to pay sales tax on a new boat in what ever state you buy it in, but on a used one when you bring it back and register it here they do not charge sales tax on used boats. only on the trailer and then you pay registration fees.

[wildkat7]

<table width="90%" cellspacing=0 cellpadding=0 align=center><tr><td>Quote, originally posted by weekend warrior &raquo;</td></tr><tr><td class="quote">there is no sales tax on used boats in AR. i have bought several boats and you will have to pay sales tax on a new boat in what ever state you buy it in, but on a used one when you bring it back and register it here they do not charge sales tax on used boats. only on the trailer and then you pay registration fees.</td></tr></table>

bingo...

[reeldeal]

Mhays26, go get that boat and let us know the result. If I'm wrong the state owes me a lot of money!

[wildkat7]

<table width="90%" cellspacing=0 cellpadding=0 align=center><tr><td>Quote, originally posted by reeldeal &raquo;</td></tr><tr><td class="quote">Mhays26, go get that boat and let us know the result. If I'm wrong the state owes me a lot of money! </td></tr></table>

Arkansas has had it both ways. I remember when boat shopping, I asked a dealer here about sales tax and he said that they used to force sales tax on all bought boats but now just new ones.

[cmclairday2]

I bought mine from a dealer in Texas. It was a used boat, and I paid no taxes on anything but the trailer after I got back in Arkansas.