New Boat Sales Tax in AZ

I know that there was a thread on Arizona registration in the past, but it didn't really address the sales tax paid on a new boat purchase. If I buy a new boat and have it delivered and registered in Arizona, do I have to pay any sales tax?

normally you pay tax where you live. Not a po box

I think the boat has to live in AZ for some time.

We considered doing this through Oregon. Now that boats are SO expensive, it is starting to make more sense.

People do this with Yachts all of the time -- buy them, take delivery in Oregon, keep them in Oregon for some time. I am not sure if the rules are special for yachts because they are "homes" (have a kitchen, bed and toilet).

I heard that you must pay AZ, tax, and possibly additional tax later....

http://www.pedatarvcenter.com/rv_pedata_faq.html

If We Buy From Out Of State How Does Tax And Registration Work?

Each state is a little different, but most are reciprocal with Arizona. This means that if the state you reside in has a higher tax rate than Arizona then you can pay our tax then pay the difference when you go to register the RV. Example: our rate is 5.6% and if yours is 6.6% then you simply pay 1% to your state when you register. If your state is lower than Arizona then you have the option of doing an out of state delivery. This means you do not pay Arizona sales tax and then pay in your home state if applicable. As far as registration works, if you buy from out of state we issue you a 30 day drive out. This means you have 30 days to register your RV in your home state. Rules and regulations can change very often so pleas contact your local DMV to make sure your covered.
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There is a funky way to avoid tax alltogether, at least for RV's. You buy the vehicle, use it on the road for XX amount of days, then legally avoid sales tax. If need to keep records of use, etc. but for motorhomes it can save a bundle.

Dont know if you guys know this but the sales tax is a right off at the end of the year!!

I'm actually going through this now. If its from a dealer, yes - from a private party, no. Call Fish and Game, they'll let you know. AZ wants tax to be paid on the initial purchase only.

Sales tax is not a right off, unless its as an expense for a business purchase.

ps. - if you reg it in AZ, they want you to have an AZ address to use.

If you look at the new tax laws it is a wright off along with tax from gas purchases etc. } change people dont know about!!!!

Kenny,

THANKS!

http://www.sco.ca.gov/col/taxinfo/gtr/index.shtml

I know other sates were doing this...finally we get the highway tax money back for boat gas.

just a little something more you can write off reg fees for your vech including your boat also!! I'm not a tax expert but the more you know the more of your money you keep

bobby thanks for posting the link!!!

Does anyone know the sales tax rate that you have to pay when buying a new boat in Arizona?

The sales tax in Arizona can vary depending on the city where the boat is purchased. The tax is made up of portions that go to the state, county, and the specific city. I believe that my tax last year was 7.8% and the dealer was in Mesa. Don't buy anything in Page, the tax there is 9.525%

I don't know how important this is to those in CA and AZ, but here's the scoop on credit for sales tax.

Under IRS guidelines, you can now choose to take your paid state income tax or your paid state sales tax as a deduction. In many states it would make sense to take the state income tax, however in states like Tennessee and Florida that have no state income tax, taking credit for state sales tax is a no brainer.

If you go the state sales tax route, you can itemize or take a standard deduction. What's more, major purchases can be added IN ADDITION to your standard deduction. In my case I got XX dollars of standard deduction, plus the $1,800 I paid in sales tax on a new car.

Well stated Matt!!!! Tat is exaclty what I did buying a new Sanger 215 and new chevy truck!!!

Dave,
AZ charges around $90 for the boat registration. An address is not necessary but you may use one if you like. The boat does not have to stay in AZ. CA cant charge you a dime.

Az will register your boat either resident(must have address) or Non resident status.

Dave,

I am looking to buy a new boat also. Look into the trade in rules down in there in Cali. I will be selling my boat myself but the dealer will handle the transaction with the buyer and thus be able to credit me with a trade in balance that will offset the sales tax by tht amount as the purchase price will be lowered by the trade in amount. As a bonus the dealer will post an ad for the boat at their which will probably make for a quick sale. Btw, are you looking to stay with the LSV or are you going for a different boat?

As much as I love the LSV, I'm going with a VLX this time. The new VLX hull is only 12 inches shorter than my LSV, but it will fit into my garage now! I'm very excited!

Sticking with Malibu though. I will also be getting the new VLX.