[C320-list] Update on boat purchase - Taxes

[Rick Evans]

Agreed already admitted I misread :). Live and learn. Last time I will respond in the morning before I drink my coffee
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-----Original Message-----
From: Scott Thompson <surprise at thompson87.com>

Date: Wed, 17 Jun 2009 10:37:25 
To: <C320-List at Catalina320.com>
Subject: Re: [C320-list] Update on boat purchase - Taxes


Rick, I think you need to read his post again.  The outcome is that he 
can pay the lower tax in Maryland while not paying any tax in Illinois 
if he moves the boat promptly and titles it in Maryland.  There will not 
be any need to refund anything.  And if he had paid the Illinois tax, he 
would receive a credit when registering the boat -- not a refund --- 
from Maryland.

The Maryland DNR is not always the quickest organization, but in my 
experience they are fair and if they owe you money the chances you will 
get it are 100%.  They were very helpful when I purchased my first boat 
and the broker screwed up the title transfer and registration process.

Rick Evans wrote:
> Sounds like cross state tax laws are trying to get over on all of us to me. The tax should be paid in the state you register the boat that's it. Its simple and less red tape. 
> 
> What are the odds you actually get your "refund" from MD?  
> Even if you do how long will it take?  One thing people forget is that you will be lending the state of MD that money and during that time you will not be able to earn interest on the money but they will. Essentially your giving the state a loan for free. Cause I'm sure they will give you your money back with interest lol. 
> 
> I don't like it one bit. 
> 
> Good luck to you
> Rick 724
> Sent via BlackBerry from T-Mobile
> 
> -----Original Message-----
> From: "Brad Kuether" <bkuether at comcast.net>
> 
> Date: Wed, 17 Jun 2009 07:38:11 
> To: <C320-List at Catalina320.com>
> Subject: [C320-list] Update on boat purchase - Taxes
> 
> 
> Hey Everyone,
> 
> Here is an update.
> 
> First from the Maryland side, quote from the DNR:
> 
> "In order to receive the offset against the 5% Maryland excise tax, the boat 
> must be formally titled in the state of purchase, in the name and address of 
> the new owner, taxes paid, and tax forms recieved and presented".
> 
> So if the outside state of purchase will NOT let you walk away with the boat 
> without paying taxes, you MUST take ownership, and have it titled in your 
> name, pay taxes, and be able to present those tax forms to the Maryland DNR 
> when doing the title change in Maryland.  They will credit you up to the 
> amount paid, and if less than 5% you owe Maryland the balance.  (this is 
> fair)
> 
>>From the Illinois side:
> 
> "The boat can be purchased from an Illinois owner or broker, without any tax 
> implications, as long it is removed from the state within 30 days after the 
> paperwork is signed.  ALSO, the dealer should be provided with the Maryland 
> (or other outside state) tax forms, as proof taxes were paid.
> 
> So in the end, I am paying 5% Maryland instead of 6.5% Illinois tax.   A 
> happy ending indeed.
> 
> Survey is set for the last week in June, boat (hull 1006) will be shipped on 
> July 12th to Maryland Marina, two slips over from Warren Updike's "Wal de 
> Mar".
> 
> The kids are out of their minds, "when can we sleep on it", "I want to sit 
> in the seats!", "Can we take this boat really far away, like China?"
> 
> -Brad, Mary, Monica, and Jarod
> soon "Independence 1006"
> Middle River, MD
> 
> ----- Original Message ----- 
> From: "Rod Boer" <rod.boer1 at verizon.net>
> To: <C320-List at Catalina320.com>
> Sent: Monday, June 15, 2009 4:53 PM
> Subject: Re: [C320-list] Update on boat purchase
> 
> 
>> Hi Brad,
>>
>> I purchased Odyssey in NJ and sailed it directly to MD which is where I 
>> paid
>> the tax on it.  Sometime later PA, which is where I live, came after me
>> demanding sales tax and I explained that it hadn't been used in PA and
>> wouldn't be physically in PA and that was the end of the story.
>>
>> Rod Boer
>> Odyssey, #688
>>
>> -----Original Message-----
>> From: c320-list-bounces at lists.catalina320.com
>> [mailto:c320-list-bounces at lists.catalina320.com] On Behalf Of Brad Kuether
>> Sent: Saturday, June 13, 2009 7:08 PM
>> To: C320-List at Catalina320.org
>> Subject: [C320-list] Update on boat purchase
>>
>> I am less than a month from getting "Independence" a 2004 Catalina, and
>> bringing her home to Middle River parked one boat over from Wal de Mar.
>>
>> I have a surveyor lined up, the broker has been GREAT (Sail Place in
>> Chicago), and almost everything is set, even the financing!
>>
>> Right now the only open switch is the taxes.  I assumed that I would just
>> pay the state where the boat was located "to" but this appears to not be 
>> the
>> case.
>>
>> >From the Maryland DNR page, it appears that I pay taxes in Illinois, and
>> get a "credit".  I would think Maryland would want those taxes, Illinois 
>> got
>> them already on the initial purchase!
>>
>> Here are the two pages:
>>
>> http://www.dnr.state.md.us/boating/registration/
>>
>> http://www.dnr.state.md.us/download/DNRB-240.pdf
>>
>>
>> Anyone move a boat to Maryland from another state?  Curious to understand
>> the tax implications.  I am NOT paying both states!
>>
>> Thanks in advance for any insight.
>>
>> -Brad, Mary, Monica, and Jarod
>> soon to be "Independence"
>> Hull # 1006
>> Middle River, MD
>>
>>
> 
> 

-- 
Scott Thompson
Surprise, #653