Sales Tax requirements for boats LEAVING Michigan.

[Mfoxchicago]

Hey Steamboaters,

Does anyone have specific experience or knowledge of the Sales Tax requirements for boats sold in Michigan and being overland hauled out of state for registration on another state. One source I've been told of recollected to me that IF the boat is being hauled by a professional hauler OUT OF STATE, I would not have to pay MI Sales Taxes. Is this true.

Please advise ASAP. Thanks.

[Lopez Mike]

In Washington State, they don't care what you've done or paid elsewhere as long as you have a title. You pay when you register it. How the heck would they enforce paying a sales tax when it is leaving the state? That would be a new one on me (Not the first time though!).

[Mfoxchicago]

Thanks Mike for the quick reply. I recall being told that IF you planned to sail the boat out of MI waters and had done the deal through a broker, MI would need to be paid some sort of sales tax. But, If you were doing the deal between two individuals, without a broker (which is what I did), and the boat was leaving the state by overland hauler, you did not have to pay any Sales Tax.

[Lopez Mike]

I cannot speak for anyone but myself but every, and I mean EVERY transaction I have been involved with that included a broker or a realtor at any stage has been a total screwup and one time they broke the law so big that even I couldn't believe it! I made a written offer on a boat including a check. A couple of weeks later I saw a couple working on the boat. I asked them if they had bought it. "Yes, and for x amount". The amount was just over my offer. I went to the broker forthwith. It took two months to get my money back. I investigated and found that they had taken my offer and used it to seek other offers. I would have taken them to court but I hate lawyers just as much.

Yes, you may know some decent and honest brokers, realtors and lawyers. Good for you. Don't bother me.

[DetroiTug]

Hi Mack,

Congrats on the boat purchase.

I live in Michigan and I've never heard of anything like that. To my knowledge sales tax on boats and cars are paid when it is registered at the Secretary of state in the state where it will be kept. It's not going to be registered here.

-Ron

[Mfoxchicago]

Good morning Ron,
I knew that question could be settled if I sent an inquiry out to the Steamboating community. Especially those living in Michigan. I appreciate your taking time to message me.

Have a great week.