Buying a Boat on the Internet - Sales Tax Question

wakessories · Soul Rider Joined: 09 Feb 2005 Posts: 283

I had a friend ask me if he purchased a boat on ebay and it was in a different state (Mississippi vs. Iowa), does he have to pay sales tax! If he does have to pay sales tax, which state? He's in Iowa and the boat is in Mississppi.

midwesty · Posted: Feb 09, 2006 7:31 am Post subject:

you pay sales tax when you register/title the boat in iowa, same as a car when purchased out of state.

OR you pay sales tax there, and make sure you have proof, and either then you will pay the difference in percentage ie MS 7% and IA 7.5% or if iowa is cheaper on sales tax you will get some cash back, some states wont let you leave without paying sales tax

djiali · Outlaw Joined: 08 Sep 2005 Posts: 176 City: Alexandria

you shouldn't pay sales tax in mississippi...only when you register the boat in iowa will you have to pay taxes...same as you would with a car. If the seller is asking him to pay taxes, you may have to consult a lawyer.

Darin · Guest

You don't pay tax on a boat you buy out of state, till you title it, then you pay the tax in your state. Just went through that.

actiondcpd · Posted: Feb 10, 2006 10:00 am Post subject:

Can't get around the tax. You pay when you register and it sucks.