How much is the sales tax on a new boat in TN ?
Thanks.About 10% like most everything else.
No, unfortunately not, and they will even tax it if you buy it out of state, then tack on some additional %s:Thanks.
I was thinking it was lower on boats & vehicles and stuff.
Oh well. LOL
A boat was purchased out-of-state by an out-of-state resident in March 2012 for $25,000. Tax was paid at a 6% rate equaling $1,500. The person moves to Tennessee with the boat in March 2013. The boat has a fair market value of $21,000. Tax should be calculated as follows:
The 7% general state sales tax rate applies to the fair market value of $21,000. ($21,000 x 7% = $1,470).
The local option tax rate applies to the first $1,600 of the fair market value. The local option tax rate in Davidson County is 2.25%. ($1,600 x 2.25% = $36.)
The state single article tax applies to the fair market value from $1,600.01 up to $3,200 (second $1,600 of the fair market value). The state single article tax rate is 2.75%. ($1,600 x 2.75% = $44.)
In this example, the total Tennessee tax due before credit is given for the Kentucky tax paid is $1,550. ($1,470 + $36 + $44 = $1,550.)
The new Tennessee resident owes $50 in Tennessee tax on the relocated boat after credit is given for the Kentucky tax paid. ($1,550 - $1,500 = $50.)
A boat dealer sells the customer a boat for $6,141, a boat motor for $4,000, and a boat trailer for $1,000. The dealer also sells $875 in dealer installed accessories and adds a $275 charge for freight and a $225 charge for labor.
The total invoice sale price is $12,516.
For sales tax purposes, the boat, motor, freight, accessories, and labor are one single article. The boat trailer is a separate single article.
Because the total sales price of each item is subject to the state sales tax, the total invoice sales price is taxed at the state 7% general sales tax. $12,516 x 7% = $876.
The first $1,600 of the combined sales price of the boat, motor, accessories, labor, and freight, and the $1,000 sales price of the trailer is taxed at the local sales tax rate of 2.25%. $2,600 x 2.25% = $59.
The second $1,600 of the combined sales price of the boat, motor, accessories, labor, and freight is taxed at the state single article tax rate of 2.75%. The sales price of the trailer does not exceed $1,600, so no state single article tax is due on the trailer. $1,600 x 2.75% = $44.
The total tax liability on this transaction is $979.
That's always what I did. Pay taxes on the BOAT only. They don't need to know what you have on it and no trailers do not need registration unless it's commercial I believeSomething to consider if private sale....
You register the boat, not the outboard and therefore pay sales tax on the boat when you register it. If I was buying a boat tomorrow, I'd buy it in 3 separate transactions and get a bill of sale for each:
1. Hull
2. Outboard
3. Trailer(do you have to register the trailer in TN? I'm not sure)
When I registered it, I would only give the bill of sale for the hull(boat) unless I needed to register the trailer as well.
This is common practice in FL for private sales. Doesn't work at a dealership as they collect sales tax at time of purchase on the whole package.
just dont try it in benton county or you will get caught. every since the county clerk and her husband was arrested for a little "discount" they investigate low ball values now.Something to consider if private sale....
You register the boat, not the outboard and therefore pay sales tax on the boat when you register it. If I was buying a boat tomorrow, I'd buy it in 3 separate transactions and get a bill of sale for each:
1. Hull
2. Outboard
3. Trailer(do you have to register the trailer in TN? I'm not sure)
When I registered it, I would only give the bill of sale for the hull(boat) unless I needed to register the trailer as well.
This is common practice in FL for private sales. Doesn't work at a dealership as they collect sales tax at time of purchase on the whole package.
I assume that's what I did. LOLWhatever you choose to do, do it legally.
No idea. I can't afford a NEW boat. Those are for RICH folks!How much is the sales tax on a new boat in TN ?
The break in isn't near as bad as I expected.Make sure you follow break in instructions for motor exactly as recommended.
Hey, at least I didn't knock the fender off on the way home !! LOLNo idea. I can't afford a NEW boat. Those are for RICH folks!
Inferior fender welds according to the boat's owner. Who am I to argue?Hey, at least I didn't knock the fender off on the way home !! LOL
Yeah, we heard the story.
@rem270
Well the story we heard is you were ready to get home doing 85mph and got to the house and one fender was gone and one hanging on by a threadI don't remember telling that story to ANYONE! And I wasn't driving!
Inferior fender welds according to the boat's owner. Who am I to argue?Well the story we heard is you were ready to get home doing 85mph and got to the house and one fender was gone and one hanging on by a thread