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New Louisiana Used Boat Tax question

Posted on 5/15/16 at 9:01 pm
Posted by cdaniel76
Covington, LA
Member since Feb 2008
19699 posts
Posted on 5/15/16 at 9:01 pm
If a boat is donated via a donation bill of sale will there still need to be taxes paid?

If so, how does the state determine value?
Posted by AlxTgr
Kyre Banorg
Member since Oct 2003
81635 posts
Posted on 5/15/16 at 9:36 pm to
Donations of used cars between family do not result in taxes. Besides that, the statute on boats does not appear to cover used boats anyway.
Posted by Barf
EBR
Member since Feb 2015
3727 posts
Posted on 5/15/16 at 9:46 pm to

quote:

Besides that, the statute on boats does not appear to cover used boats anyway.


It absolutely covers private party sales of used boats. I just bought a hull from a friend and I had to pay sales tax.
This post was edited on 5/15/16 at 9:47 pm
Posted by cdaniel76
Covington, LA
Member since Feb 2008
19699 posts
Posted on 5/15/16 at 9:52 pm to
I just read through the 5 page thread that recently discussed this and there is so much misinformation in it that I now have a headache...

People are confusing the trailer tax for the DMV and wanting to compare registering a car to registering a boat. That thread was a cluster and I'm no where closer to answering my question...

Seller is willing to donate it to me or put an extremely low price on the bill of sale if that helps us.
This post was edited on 5/15/16 at 9:54 pm
Posted by saintsfan1977
West Monroe, from Cajun country
Member since Jun 2010
7708 posts
Posted on 5/15/16 at 9:52 pm to
Just tell the guy you buy the boat from to put the value at $100. Problem solved.
Posted by cdaniel76
Covington, LA
Member since Feb 2008
19699 posts
Posted on 5/15/16 at 9:53 pm to
quote:

Just tell the guy you buy the boat from to put the value at $100. Problem solved.





This is what I'm leaning towards also but you've got to think the state thought about that issue...

But then again, we're talking about brainless politicians, aren't we?
Posted by cdaniel76
Covington, LA
Member since Feb 2008
19699 posts
Posted on 5/15/16 at 10:01 pm to
Here's what the Dept of Revenue days about the new tax:

quote:

Boat Registration

Know the facts about Boat Registration's

Any boat used in Louisiana waters must be registered with the Louisiana Department of Wildlife and Fisheries (LWF). An invoice or bill of sale, showing state and local taxes as part of the total price, needs to be provided on purchases from a dealer. However, additional documentation from the Louisiana Department of Revenue (LDR) may be required if payment of state and local taxes is not evident on purchases from dealers.

It is a violation of federal and state law to knowingly possess any boat or motor from which he Hull Identification or Serial Number has been removed or altered.

If a boat is purchased from a boat dealer in Louisiana, the dealer must collect state and local sales taxes on the price of the boat, motor, and its accessories. Usually, the dealer provides the buyer with a sales invoice or bill of sale which proves taxes have been paid. The buyer should present this, along with a completed State of Louisiana Boat Registration Application, directly to the Department of Wildlife and Fisheries. Additional information may be required in order to verify payment of the state and local taxes if not evident on invoice when purchasing from a dealer.

The sale of boats and vessels by Individual owners will be subject to state sales or use tax beginning April 1, 2016. The Department of Revenue requires a copy of a bill of sale and a copy of the previous -owner's registration with the US Coast Guard, and/or title registration with the state in which the boat was used. This documentation, along with a completed Boat Registration Tax Payment Certification (R-1331) should be forwarded to LDR (see Contact Options listed below). Once this has been done, the owner can proceed to the Department of Wildlife and Fisheries to complete the boat registration process.


If a boat is purchased from a dealer located outside Louisiana, and no state and local tax is charged, additional documentation is necessary before the boat can be registered. The buyer must submit a completed Boat Registration Tax Payment Certification, along with the sales invoice or copy of a bill of sale from the out-of-state dealer to the Department of Revenue (see Contact Options listed below). LDR will collect the state sales tax and provide documentation that payment has been made. The buyer must also obtain certification from the parish in which he resides that local sales taxes have been paid. After a Boat Registration Tax Payment Certification has been completed by the Department of Revenue and local taxing authorities, the boat owner may send Form R-1331, a sales invoice or bill of sale, and a completed Boat Registration Application, to the Louisiana Department of Wildlife and Fisheries to process the boat registration application. The Department of Revenue will allow credit for taxes paid to o ther states against Louisiana state sales tax due based on a tax rate basis.

Homemade boats without a Hull Identification Number must be inspected by the Louisiana Department of Wildlife and Fisheries. Receipts for building materials, which indicate taxes paid, must be provided at the time of inspection.

If a boat has been awarded as a contest prize, it is the responsibility of the new owner to provide Louisiana Department of Revenue with a bill of sale and a completed Form R-1331. If the organization awarding the boat as a prize did not pay tax on the boat when it was received, the new owner must pay state and local sales tax on the value of the boat.

Under Louisiana law, a boat trailer must be registered to operate on public highways. Therefore, boat trailer registrations are treated similar to motor vehicle registrations, and issued by the Louisiana Office of Motor Vehicles (OMV), which will collect state and local sales tax. The new owner of a trailer should bring a notarized bill of sale to an OMV office.

Contact Options

Email:Boat.registrations@la.gov

Fax: (225)952-2502

Mail: Louisiana Department of Revenue Boat Registrations

P.O Box 3278 Baton Rouge, La 70821-0201

Or call 855- 307-3893, press 2 (Business), then press 3 (all other business questions)

For more information visit Louisiana Wildlife and Fisheries at www.wlf.louisiana.gov


There's nothing in there about private donations. Only something about 's prize or contest.
Posted by AlxTgr
Kyre Banorg
Member since Oct 2003
81635 posts
Posted on 5/15/16 at 10:03 pm to
quote:

It absolutely covers private party sales of used boats.
Both the statute and the form say otherwise. You got tricked.
Posted by bhtigerfan
Baton Rouge
Member since Sep 2008
29475 posts
Posted on 5/15/16 at 10:20 pm to
quote:

Both the statute and the form say otherwise. You got tricked.

quote:

The sale of boats and vessels by Individual owners will be subject to state sales or use tax beginning April 1, 2016. 
Sounds pretty fricking cut and dry to me.
Posted by cdaniel76
Covington, LA
Member since Feb 2008
19699 posts
Posted on 5/15/16 at 10:40 pm to
Here's the General Information page from the revised R-1331 tax from used for registering boats. (revised 4/16)



Says nothing about donations. Only a 4% sales tax. (which drops to 2% on 7/1. ain't that some shite?)
This post was edited on 5/15/16 at 10:44 pm
Posted by DownSouthDave
Beau, Bro, Baw
Member since Jan 2013
7377 posts
Posted on 5/16/16 at 4:36 am to
That's ridiculous. Tax people at 4% for three months, then cut in half for the next two years? And why mention the 0% for the next two and a half years? I don't follow the logic here.

Nothing but a bunch of crooks and thieves.
Posted by SeaPickle
Thibodaux
Member since May 2011
3133 posts
Posted on 5/16/16 at 4:54 am to
quote:

Just tell the guy you buy the boat from to put the value at $100. Problem solved.

Just sold my boat 3 weeks ago. The buyer informed me of the new law the day if the sale. He has to pay taxes on boat and trailer when registering each. As I said in the last thread he got a hell of a deal according to the paperwork. That paperwork will be submitted to the state and he will pay taxes (boat and tailer) off of those sale amounts
This post was edited on 5/16/16 at 4:56 am
Posted by AlxTgr
Kyre Banorg
Member since Oct 2003
81635 posts
Posted on 5/16/16 at 6:35 am to
quote:

Sounds pretty fricking cut and dry to me.
That's not the statute.
Posted by tigerfootball10
Member since Sep 2005
9495 posts
Posted on 5/16/16 at 6:38 am to
Is there anything NOT being taxed in the State of LA
Posted by mdomingue
Lafayette, LA
Member since Nov 2010
30304 posts
Posted on 5/16/16 at 7:37 am to
quote:

quote:


Sounds pretty fricking cut and dry to me.

That's not the statute.


So Show us the statute.
Posted by Barf
EBR
Member since Feb 2015
3727 posts
Posted on 5/16/16 at 8:08 am to
quote:

Both the statute and the form say otherwise. You got tricked.



Whatever you say. It's not my fault you can't figure it out.
Posted by AlxTgr
Kyre Banorg
Member since Oct 2003
81635 posts
Posted on 5/16/16 at 8:16 am to
quote:

It's not my fault you can't figure it out.


Posted by xenon16
Metry Brah
Member since Sep 2008
3528 posts
Posted on 5/16/16 at 8:22 am to
quote:

That's not the statute.
The online R.S. haven't been updated for the new laws. However, that won't stop them from enforcing them...

CD, there is no such thing as a donation bill of sale. It's either a gift or a sale. Sales tax is due upon the sale and use tax may be due on a gift if no sales tax has previously been paid to Louisiana.
Posted by AlxTgr
Kyre Banorg
Member since Oct 2003
81635 posts
Posted on 5/16/16 at 8:26 am to
quote:

So Show us the statute.




Full.

D. Collection of tax on motorboats and vessels. (1) Except as provided for in R.S. 47:305(D)(1)(i), the secretary of the Louisiana Department of Wildlife and Fisheries shall not register or issue a certificate of registration on any new boat or vessel purchased in this state until satisfactory proof has been presented to him that all sales taxes provided by this Part, and all municipal, school board and parish sales taxes, have been paid, nor shall he register or issue a certificate of registration on any boat or vessel brought into this state until satisfactory proof has been presented to him that all use taxes required by this Part, and all municipal, school board and parish use taxes, have been paid.

(2) Any sales or use tax levied by the state or a statewide political subdivision due under the provisions of this Chapter may be collected by special certificate agents of the Department of Wildlife and Fisheries as provided for in R.S. 34:851.37. Upon receipt by such department such taxes shall be remitted as soon as possible to the Department of Revenue.

From the other htread:

(cut and pasted from the bulletin)
The listed exclusions and exemptions which will continue to be operative and in effect are as follows:
(10) Tangible personal property for resale as provided in La. R.S. 47:301(10)(a)(i).


quote:

(cut from original statute)
1. R.S. 47:303(D) and 47:337.15(D) provide that the secretary of the Department of Wildlife and Fisheries shall not issue a certificate of registration on any boat or vessel which is purchased in, or imported into, Louisiana until satisfactory proof is presented showing that all state and local sales taxes have been paid. This will be in the form of a “tax payment certification for boat registration”, which is available through the boat dealer or at any office of the Department of Revenue.
4. In the case of a boat or vessel purchased from an individual owner who is not engaged in the business of selling boats or vessels, the certificate must be completed and signed by the purchaser and a revenue deputy of the Department of Revenue and by a tax collecting agent of the local collector where the purchaser resides. Sales of boats and vessels by individual owners will be regarded as isolated or occasional sales, and not subject to state and local sales or use tax. The purchaser, however, must provide sufficient documentation to support such a basis for exemption, such as a canceled check and a notarized bill of sale, or the prior owner's certificate of registration showing his or her transfer of ownership to the purchaser.


Revenue document

Occasional language is on the form.
Posted by Barf
EBR
Member since Feb 2015
3727 posts
Posted on 5/16/16 at 8:31 am to
quote:

AlxTgr


Has anyone ever told you that you're really annoying?

LINK

quote:

The sale of boats and vessels by Individual owners will be subject to state sales or use tax beginning April 1, 2016. The Department of Revenue requires a copy of a bill of sale and a copy of the previous -owner's registration with the US Coast Guard, and/or title registration with the state in which the boat was used. This documentation, along with a completed Boat Registration Tax Payment Certification (R-1331) should be forwarded to LDR (see Contact Options listed below). Once this has been done, the owner can proceed to the Department of Wildlife and Fisheries to complete the boat registration process.
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