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Registering one from out of state

CliffordN

CliffordN

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Dec 2, 2021
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438
Location
Florien, LA
So, I just bought a boat from a guy in Missouri. Now, I need to get it registered here, and they want sales tax. OUCH!
The guy had owned it for many years, and they want proof that he paid sales taxes there to give me credit. I am confused! I have a title, and a bill of sale, plus the MO hull registration. Can someone walk me through this process please?
 
In order to haul my boat over the mountain from TN to SC and thru the commie state of NC I had to :

I bought my boat private sale in NC as well. I forgot how I registered it thru TWRA and got that sticker…. Sorry

Open checkbook
Pull out pen
Write a check
Got license plate and registration for trailer
And I have to get a new sticker every year
 
You will have to pay sales tax on the purchase for TN.

If the person you bought it from had it registered in MO, I would tell the TN Clerk's office that would be proof enough that the MO sales tax issues were taken care of. If it wasn't currently registered, good luck, because you are entering a black hole.

You can go to another county to pay the TN sales tax and register. Some counties take a more realistic view of the process than others.
 
It is just like when you go to get tags for a used vehicle. You carry in the title and a bill of sale. I have always just written on a piece of paper the vin, both people's names, and both people sign beside their name and the clerk makes you pay the tax and your done. Lots of folks will agree to write a lower sales price to save you money for the taxes.😉
 
From what I just read on their site, they have a way to determine the "fair" market value of the boat at the time of purchase. So getting a great deal on the sale is not going to help. I hate taxes, and this is not making me too happy!
 
CliffordN said:
From what I just read on their site, they have a way to determine the "fair" market value of the boat at the time of purchase. So getting a great deal on the sale is not going to help. I hate taxes, and this is not making me too happy!
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On vehicles they try and go by bluebook, or the like, value, unless you can show why it is worth less. I had to have the owner write me a note on why he priced a jeep at the amount on the bill of sale.
 
CliffordN said:
From what I just read on their site, they have a way to determine the "fair" market value of the boat at the time of purchase. So getting a great deal on the sale is not going to help. I hate taxes, and this is not making me too happy!
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If you can get him to fill out a "low sale price" affidavit. Basically saying the "reason" for such a low low price. There's plenty of free forms online to print off
 
So I just bought another trailer, and this one is for my kayak. From what SCN is saying I don't really have to register it but but I need to show or have proof of purchase?
 

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Another facet of this. I see that TN doesn't have trailer tags. So how does that work when you tow out of state, and get into a state that does have plates on them?
 
CliffordN said:
Another facet of this. I see that TN doesn't have trailer tags. So how does that work when you tow out of state, and get into a state that does have plates on them?
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You follow the laws of the state your reside in. But every once in awhile you will run into an officer in another state that don't understand we don't tag our trailers. Then it's a pain.
 
I won a boat on a raffle at the turkey show. You wanna talk about confusion at the clerks office😂 luckily our clerk is a reasonable man. He said, "if you didn't pay for it, I can't charge you"🤷🏼‍♂️ But we had to go through 2-3 people to get to that point
 
ImThere said:
You follow the laws of the state your reside in. But every once in awhile you will run into an officer in another state that don't understand we don't tag our trailers. Then it's a pain.
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Carry a copy of the Tennessee state law that states trailers do not have to be registered; i.e., no license plate required.
 
Tennessee may be the worst state for sales tax on boats. I don't know how they can determine FMV if you look up the boat on Nada or KBB you probably wont find it..
 
Years ago I bought a new trailer in Indiana outside the manufacturers facility because it was a much better price than I could get here. I told them I didn't want to pay tax because I would have to pay it when I ordered tags in Tennessee. They complied with the proper paperwork. When I got back to Tennessee I found out a tag wasn't required, so I never registered it or paid the sales tax. It took two years, but Tennessee sent me a bill for the tax plus penalties.

Utility trailers under 8' wide x 20' long and boat trailers don't require a tag in Tennessee, but they have to be pulled by a Tennessee licensed vehicle.

I've pulled that trailer with no tag all over the country and never been stopped. However, as others have said, if you are stopped in another state you are bound by their laws, or the Officer not understanding or caring what Tennessee laws are. I've seen plenty of people on forums claim they were ticketed in other states. It's a risk you take.
 
Bgoodman30 said:
Tennessee may be the worst state for sales tax on boats. I don't know how they can determine FMV if you look up the boat on Nada or KBB you probably wont find it..
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I don't know about boats, but they have not required fair market value on cars I've bought. They ask how much I paid, and I paid the sales tax based on that.

I don't know what the procedure would be if they think you are lying. I would guess a bill of sale.
 
CliffordN said:
So, I just bought a boat from a guy in Missouri. Now, I need to get it registered here, and they want sales tax. OUCH!
The guy had owned it for many years, and they want proof that he paid sales taxes there to give me credit. I am confused! I have a title, and a bill of sale, plus the MO hull registration. Can someone walk me through this process please?
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Unfortunately you're going to be bound by what your county clerk requires. I've had different experiences with different counties in identical situations.

If your county is being difficult, I'd try to climb the ladder and get someone besides just an office worker involved.

I see you posted this in May. I'm curious how it played out.
 
DaveTN said:
I don't know about boats, but they have not required fair market value on cars I've bought. They ask how much I paid, and I paid the sales tax based on that.

I don't know what the procedure would be if they think you are lying. I would guess a bill of sale.
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When I bought my last boat out of state my county clerk required a bill of sale.

Random story…

I know a guy who bought a used boat and the seller signed a "blank" bill of sale and told the buyer to fill in whatever amount he felt comfortable paying taxes on.

Fast forward a ways…

The seller got audited for some reason or another. They saw the deposit from where he sold his boat.

They followed up to make sure the buyer paid taxes on that amount. He hadn't. He wrote in a much lower amount on the bill of sale and paid taxes on much less. He got caught.

It's not likely, but it's the risk you take.

You could consider having separate bills of sale written for the "boat" and "accessories" (electronics, etc). A CPA will advise against that too. 😜
 
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DaveTN said:
Years ago I bought a new trailer in Indiana outside the manufacturers facility because it was a much better price than I could get here. I told them I didn't want to pay tax because I would have to pay it when I ordered tags in Tennessee. They complied with the proper paperwork. When I got back to Tennessee I found out a tag wasn't required, so I never registered it or paid the sales tax. It took two years, but Tennessee sent me a bill for the tax plus penalties.

Utility trailers under 8' wide x 20' long and boat trailers don't require a tag in Tennessee, but they have to be pulled by a Tennessee licensed vehicle.

I've pulled that trailer with no tag all over the country and never been stopped. However, as others have said, if you are stopped in another state you are bound by their laws, or the Officer not understanding or caring what Tennessee laws are. I've seen plenty of people on forums claim they were ticketed in other states. It's a risk you take.
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That's wild.. How did they find out about the trailer if you never told them?
 
XCR-2 said:
Remember, you only need to pay tax on the hull. Not the trailer, motor, or any add ons to the rig. So whatever you paid for the "hull" then that's what you pay taxes on. All boats don't come with a motor and trailer 😉
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That is incorrect...
 

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