WTF is up with NYS Sales Tax???
- Thread starter walterv
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John: After reading your last reply, I find I have to agree with you. When our son's family moved to Massachusettes, he had to register their cars there, paying registration, title, and inspection fees for each car. He did the same last year when the family moved back to New York. Like it or not, that's fair. He did not have to pay any additional sales taxes to either state because of the moves. I had assumed that the same rules follow with boats. Obviously, it seems I am wrong in that assumption. That's wrong on the states' parts. Our daughter-in-law's father recently moved his boat from Florida to New York. He hasn't re-registered it yet. Based on what you've said, he's in for quite a surprise when he goes to register it and must pay New York sales tax on it. He's owned the boat for about 5 years, having bought in in Florida and registered it there because he has a home there. Why should he pay sales tax on something he's owned in another state for five years? It makes no sense and is definitely wrong. Knowing him, he'll fight it in court. Here's hoping he wins. Boat safely, everyone, regardless of which state you're in. Hy
HY,
When I called NY Sales Tax division, my understanding was if you are not a resident of NYS when the boat was purchased, but then move to NYS, there is NO SALES TAX. If your official residency was NYS, and you had a winter home in FL or any other state, then decided to move that boat to NYS, you would need to pay the difference of what you paid where you bought the boat (sales tax) to what the sales tax would be in NYS.
When I called NY Sales Tax division, my understanding was if you are not a resident of NYS when the boat was purchased, but then move to NYS, there is NO SALES TAX. If your official residency was NYS, and you had a winter home in FL or any other state, then decided to move that boat to NYS, you would need to pay the difference of what you paid where you bought the boat (sales tax) to what the sales tax would be in NYS.
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Hogan - I thought what you said was correct too. But based on comments above I think NYS may be trying to collect the full amount from new residents.
But to Hy's point, is his father taxed in NYS based on the purchase price or the value now? And does he receive credit for the amount paid in FL to be subtracted from what he would now owe in NY?
But to Hy's point, is his father taxed in NYS based on the purchase price or the value now? And does he receive credit for the amount paid in FL to be subtracted from what he would now owe in NY?
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His legal residence has been NY for almost 20 years. They also have had a vacation home in Florida. The boat was bought, taxed, and registered there. He moved it to NY recently and it is now stored for the winter at a marina in Westchester. He plans on registering it in NY next spring. I'll post what happens when it happens. It definitely will be interesting to watch, especially since there are various opinions on the NY tax laws. This is all a new, learning experience for me as it is for others. Hy
Would really like to know how he makes out. The sad thing here in NY is you can call and ask 10 people the same question and you get 10 different answers. Knowing that I did call three times, each time I got the same answer. My thoughts at the time was it made sense to buy a boat I was at that time looking at where sales tax was close to nothing. Figured with the savings it would be cheaper to buy a condo in this state and register the boat there. Then I would move the boat to NY that summer. The clincher and reason this would not work was at the time of purchase my legal residence was NY, therefore they get their sales tax.
Here is where it gets sick, the last call I made, I told them that 10 years ago I bought a boat out of state and have been using the boat in that state, but I will be bringing the boat back to NY and using it here.
Bottom line was if you were a resident of NY at the time of purchase, you will need to pay sales tax when you move it to NY. Now of course with that scenario the boat may only be worth $100.00 so the tax would be based upon your claimed value.
If I was in your shoes, and being it is your dad. I would have him sell you the boat for $100.00, then sell it back to him for $75.00.
Walter
Here is where it gets sick, the last call I made, I told them that 10 years ago I bought a boat out of state and have been using the boat in that state, but I will be bringing the boat back to NY and using it here.
Bottom line was if you were a resident of NY at the time of purchase, you will need to pay sales tax when you move it to NY. Now of course with that scenario the boat may only be worth $100.00 so the tax would be based upon your claimed value.
If I was in your shoes, and being it is your dad. I would have him sell you the boat for $100.00, then sell it back to him for $75.00.
Walter
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Walter: I don't think the DMV would buy that. It's our daughter-in-law's father, not mine; but that's immaterial. The boat's a 40' Azmet, a 2005 I believe (so he's had it 6 years, not 10). The DMV uses a guidebook on values. Can you imagine the look on the agent's face when the bill of sale says $100 for a boat that's worth a few hundred thousand more! I might pay him the $100 and keep the boat. I couldn't do that; I can't afford even the marina charges for a boat that size.Hy