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Message
Out of state used boat purchase Conclusion in OP
Posted on 8/27/24 at 4:32 pm
Posted on 8/27/24 at 4:32 pm
I bought a used boat from a tour company in fl. The owner is listed as xyz LLC. He does not regularly sell used boats. Just when it’s time to move an older one from the fleet and purchase a new one.
Should I pay local taxes on this purchase? In my mind, this is essentially buying from an individual/company. The parish charged me 5%. Now I’m not so sure that’s right. If I purchased used from a boat dealer, I understand I would have to pay tax.
Conclusion:
I composed an email yesterday showing all the proof I could find that the seller was an individual and not a dealer/broker/builder. The director accepted my proof. NO sales tax on the purchase. Wanted to put this out there in case anyone had a similar issue in the future.
Should I pay local taxes on this purchase? In my mind, this is essentially buying from an individual/company. The parish charged me 5%. Now I’m not so sure that’s right. If I purchased used from a boat dealer, I understand I would have to pay tax.
Conclusion:
I composed an email yesterday showing all the proof I could find that the seller was an individual and not a dealer/broker/builder. The director accepted my proof. NO sales tax on the purchase. Wanted to put this out there in case anyone had a similar issue in the future.
This post was edited on 8/29/24 at 1:29 pm
7
Posted on 8/27/24 at 5:08 pm to Success
I’m not sure it matters.
We bought a jet ski from an individual in MS, and we ended up paying state, and parish tax. (Fwiw, it may or may not matter, the original owner had not registered the ski in MS, nor paid any sales tax as he had bought the ski new, in FL)
But! Only pay the taxes that it takes to get it registered. Whatever that may be.
La dept of Rev seemed to have the process pretty wrapped up tight when we did ours 2 years ago.
We bought a jet ski from an individual in MS, and we ended up paying state, and parish tax. (Fwiw, it may or may not matter, the original owner had not registered the ski in MS, nor paid any sales tax as he had bought the ski new, in FL)
But! Only pay the taxes that it takes to get it registered. Whatever that may be.
La dept of Rev seemed to have the process pretty wrapped up tight when we did ours 2 years ago.
Posted on 8/27/24 at 5:32 pm to Success
1. You will need two separate notarized bills of sale for the hull and the trailer (hull BOS will go to LDWF, Trailer BOS to LADMV)
2. After you get back home with the boat/trailer and notarized bills of sale You will need to print and complete LA form R-1331 to show proof of sales tax paid on the hull. Without this form LDWF will not register a used out of state boat until the king’s toll has been paid. To do this you will first take the hull BOS and a printed R-1331 form to your parish tax assessor’s office & pay parish sales tax. Next you will take the same documents to either the New Orleans or Baton Rouge state tax office and pay state sales tax.
3. Once the two above steps are completed, you can submit the original copies of both the notarized hull BOS and LA form R-1331 to LDWF for registration processing.
Tips:
- if you know a notary in LA, go ahead and get them to pre-stamp your bills of sale with everything but the buyer’s signature left blank, this will avoid having to find a notary on a Sunday in an area you are unfamiliar with
-Have multiple original copies of each bill of sale made
In short:
1. BOS for hull, BOS for trailer (both notarized)
2.Completed R-1331 form (parish & state tax payments)
3. Submit originals to LDWF
Regarding titles, the only reason you would need titles on the boat/motor in LA is if you are financing the sale. You will need the trailer title for DMV purposes.
Disclaimer: I am not an official in these matters, this was just my experience with a used hull out of state sale.
2. After you get back home with the boat/trailer and notarized bills of sale You will need to print and complete LA form R-1331 to show proof of sales tax paid on the hull. Without this form LDWF will not register a used out of state boat until the king’s toll has been paid. To do this you will first take the hull BOS and a printed R-1331 form to your parish tax assessor’s office & pay parish sales tax. Next you will take the same documents to either the New Orleans or Baton Rouge state tax office and pay state sales tax.
3. Once the two above steps are completed, you can submit the original copies of both the notarized hull BOS and LA form R-1331 to LDWF for registration processing.
Tips:
- if you know a notary in LA, go ahead and get them to pre-stamp your bills of sale with everything but the buyer’s signature left blank, this will avoid having to find a notary on a Sunday in an area you are unfamiliar with
-Have multiple original copies of each bill of sale made
In short:
1. BOS for hull, BOS for trailer (both notarized)
2.Completed R-1331 form (parish & state tax payments)
3. Submit originals to LDWF
Regarding titles, the only reason you would need titles on the boat/motor in LA is if you are financing the sale. You will need the trailer title for DMV purposes.
Disclaimer: I am not an official in these matters, this was just my experience with a used hull out of state sale.
Posted on 8/27/24 at 6:21 pm to Success
quote:
I bought a used boat from a tour company in fl. The owner is listed as xyz LLC. He does not regularly sell used boats. Just when it’s time to move an older one from the fleet and purchase a new one.
Should I pay local taxes on this purchase? In my mind, this is essentially buying from an individual/company. The parish charged me 5%. Now I’m not so sure that’s right. If I purchased used from a boat dealer, I understand I would have to pay tax.
IMO that is definitely an isolated sale from an individual, meaning no sales tax due. I think they looked at the entity with no context and enforced the "dealer" rule on you. This seems clear that the "Tour Company" is not engaged in the business of selling boats and does no purchase a boat with the sole intent to resell.
I'm not sure what the tax office knows about the "Tour Company" and its history of boats, but it appears they are bending the "periodically buys a boat to resell" to fit their mold for free money from you or using "individual" to mean a human not a business entity.
For anyone reading not familiar with this, the official wording on the form is this:
quote:
ISOLATED OR OCCASIONAL SALES OF BOATS: Boats that are sold by individuals may be considered an isolated or occasion sale
if the seller is not engaged in the business of selling boats. If the seller is selling a boat that he no longer uses and he sells to another
individual, this transaction would be classified as an isolated sale. However, if the seller periodically buys a boat to resell, then this seller
would be considered a “dealer” under Louisiana sales tax laws. See “Boats purchased from boat dealers or builders” above. Isolated or
occasional sales on or after July 1, 2016, are subject to 0% state sales tax. Isolated or occasional sales from April 1, 2016 to June 30,
2016, were subject to 4% state sales tax. Prior to April 1, 2016, isolated or occasional sales were subject to 0% state sales tax.
Posted on 8/27/24 at 6:38 pm to Antib551
I know I can stop payment on the check but how hard will it be go get them to see this company runs tours and doesn’t sell boats for a living?
Posted on 8/27/24 at 6:43 pm to Success
Good question! Never had to do that. Depends on the quality of your parish tax assessor. At least it wasn't the State office. That'd be damn near impossible knowing this state....
Posted on 8/27/24 at 6:45 pm to Success
I don’t know the specifics but I do know if the paperwork isn’t straight a royal pain in your arse will ensue.
Posted on 8/27/24 at 7:32 pm to DTRooster
Exactly. Trying to avoid that. But she gave me a sheet when I left and I realized I probably shouldn’t have paid. It was 345 and they closed for 4.
Posted on 8/28/24 at 8:48 am to Success
Out of state purchase from a business, dont you have to pay state and local taxes(you have to actually go to both offices and pay, obtian docs from each) and show proof when getting dmv license for trailer(do a lifetime one) and reg stickers from wildlife and fisheries?
This post was edited on 8/28/24 at 8:50 am
Posted on 8/28/24 at 12:39 pm to BET
Follow-up:
Went back today. They were nice but couldn’t tell me what was needed to prove this was a sale from an individual and not a broker or dealer. The “director” was out but will be back tomorrow. In the meantime, I sent them floridas dept of commerce showing they were not a boat dealer, their website showing the primary business is tours and rentals, and a couple of other pieces of information.
Went back today. They were nice but couldn’t tell me what was needed to prove this was a sale from an individual and not a broker or dealer. The “director” was out but will be back tomorrow. In the meantime, I sent them floridas dept of commerce showing they were not a boat dealer, their website showing the primary business is tours and rentals, and a couple of other pieces of information.
Posted on 8/28/24 at 2:18 pm to Success
You have to pay taxes even if buying from an individual, at least I think so. I bought boat from out of state individual back in 2018 so my memory is foggy. I had to pay tax in order to register the boat in LA.
Posted on 8/28/24 at 2:46 pm to The Mick
quote:
You have to pay taxes even if buying from an individual, at least I think so
Not if used buying from out of state individal. Boat, motor, trailer amounts should be listed on a bill of sale with signatures and notary stamp. No taxes after that. Will have to of course pay registration and what not after
Posted on 8/28/24 at 2:49 pm to The Mick
You only pay sales tax on the trailer.
You do not have to pay sales tax if buying from an individual if it is an Isolated or Casual sale.
You do not have to pay sales tax if buying from an individual if it is an Isolated or Casual sale.
This post was edited on 8/28/24 at 3:03 pm
Posted on 8/28/24 at 4:22 pm to jmorr34
Which is what im trying to prove.
Posted on 8/28/24 at 7:36 pm to Success
When I bought a boat from Texas, I had to fill out the tax cert form listed above. Since Texas had higher taxes than the 4.5% in LA, I did not have to pay any tax. That was straight from school board tax office in Calcasieu parish. They said I would have owed any difference if the taxes in the other state was lower. I still had to have that form filled out to get it registered in LA. This was 2016 time frame.
This post was edited on 8/28/24 at 7:38 pm
Posted on 8/28/24 at 8:19 pm to Willymac
There is no debate if he owes taxes or not...he's trying to figure out how to prove this was an isolated sale. His tax office incorrectly assumed it was purchased from a dealer when they saw "XYZ LLC" on the BOS.
Posted on 8/28/24 at 8:38 pm to Antib551
The isolated sale provision applies to in state purchases since the previous in state owner(s) has already submitted the sales tax on the moveable during the original purchase or transfer to LA.
He owes tax on the FL sale to LA dept of revenue at the parish and state level unless he can provide proof of any sales tax paid in FL (6% there) which ends up being higher than that due in his respective parish.
LA combined sales tax rate is between 4.45% and 11.45% depending on his native parish.
You need to pay this before LDWF will look at your registration application.
He owes tax on the FL sale to LA dept of revenue at the parish and state level unless he can provide proof of any sales tax paid in FL (6% there) which ends up being higher than that due in his respective parish.
LA combined sales tax rate is between 4.45% and 11.45% depending on his native parish.
You need to pay this before LDWF will look at your registration application.
This post was edited on 8/28/24 at 9:06 pm
Posted on 8/28/24 at 9:39 pm to MrJudgeSmails
Wrong. I did this in 2018 with a boat from Florida from an individual. I paid a grand total of zero in taxes to LA or FL.
Posted on 8/29/24 at 6:27 am to Antib551
quote:
His tax office incorrectly assumed it was purchased from a dealer when they saw "XYZ LLC" on the BOS.
This is the problem. I do NOT owe sales tax as this was an isolated or occasional sale. The local office gave me a paper with my r1331 application that defined an isolated or occasional sale. However I did not understand this until I got home. Now I’m waiting on the local office director for an explanation to prove he isn’t a dealer or builder per the 1331.
I may pay for the guy to get an affidavit from an attorney or similar. It will be cheaper than the taxes they want me to pay.
Posted on 8/29/24 at 6:30 am to Antib551
I also have a strong suspicion the local tax offices have no idea either. It’s possible we are both right here. LDWF doesn’t care so long as the form is stamped.
Direct from the LA dept of revenue site, with no distinction between isolated sale or dealer purchase:
“ If you live in Louisiana and bought a boat in another state, you will need the same paperwork as if you bought the boat and motor in-state. However, if that state charged less in sales tax than Louisiana, you may owe additional sales tax to the state of Louisiana. LDR will calculate that figure based on your paperwork and provide a letter of tax due as well as information on how to make a payment.”
Direct from the LA dept of revenue site, with no distinction between isolated sale or dealer purchase:
“ If you live in Louisiana and bought a boat in another state, you will need the same paperwork as if you bought the boat and motor in-state. However, if that state charged less in sales tax than Louisiana, you may owe additional sales tax to the state of Louisiana. LDR will calculate that figure based on your paperwork and provide a letter of tax due as well as information on how to make a payment.”
This post was edited on 8/29/24 at 6:34 am
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