Tax in AR on used boat (and trailer).

Here is what the AR DFA Office has online about sale tax on a used boat. "Sales tax is collected by the dealer for new and used boats. Arkansas does not charge sales tax on casual sales (individual to individual) for boats." Does this apply to the boat and trailer or just the boat. If there is sales tax on the trailer and not the boat, what is the rule for pro-rating the purchase price b/w the two. While it doesnt say anything about out of state purchases, I am thinking same rules apply. Anyone with experience in this issue please let me know. -Lee

This topic has 7 replies, 5 voices, and was last updated 17 years, 4 months ago by Bass Cat Boats.

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January 16, 2008 at 6:00 pm #355753

clownshoes
Participant

bought boat from CA and I live in AR- individual purchase. no dealer no tax either.C.O.D. Jr. III

January 16, 2008 at 6:17 pm #355757

djk3030
Participant

Ive bought 3 used boat & trailer combos living in Arkansas, 2 BassCats from individuals (1 from an individual in Missouri) and a low $ johnboat from a dealer. Theres no sales tax charged for the boat, motor or trailer on casual sales just like is stated. However, for some reason that currently escapes me, you have to break the trailer out from the package deal and give it its own itemized value on the bill of sale, and that value needs to be BELOW $2500. Out-of-state makes no difference either, youll just have to get an Arkansas AR hull number and trailer tags instead of transferring them. The only reason that sales tax is charged on purchases of used boats from dealers is that they assume the used boat was given as a trade-in and they dont charge new boat buyers sales tax on trade-in value, only on the trade difference. DekeLast edited by djk3030 on January 16th, 2008, 6:20 pm, edited 1 time in total.[font=&QUOT]Deke[/font]

January 16, 2008 at 6:56 pm #355760

clownshoes
Participant

I was just about to add the trailer part…very importantC.O.D. Jr. III

January 16, 2008 at 7:06 pm #355767

lreddmann
Participant

Crystal clear. Thanks Deke and Ward. -Lee

January 16, 2008 at 7:17 pm #355771

jignpig
Participant

Yep, got that one finally figured out today…bought a used Cat from an individual last May. Went to get tags with registration, and the person asked me if I paid X amount for the trailer(total price). I told him no and he said I needed to recalculate the price of the trailer only, that usually they are around Y dollars. Unfortunately, I forgot the outboard serial number, so I went home to get it. When I came back, I worked with a different person at the revenue office. If bought through casual sale from individual and trailer less than $2500, no sales tax. Only figured out today by this post what happened to me…………Thanks Guys!!96 Eyra/12 Mercury 175 Pro XS with 2015 single axle trailer2017 Victory Gunner

January 16, 2008 at 8:48 pm #355774

Bass Cat Boats
Keymaster

You guy got it made, in Michigan you pay sales tax on the complete purchase price of a used rig, 6% then $75.00 for Trailer Plate (lifetime if you dont lose it but only to you) then $42.00 for a State Registration Sticker (3yrs) on boats less the 21ft . You pay sales tax on the complete selling price of a new rig and the trade in is just part of your deposit then when it sells that person buying pay sales tax on it. No difference if your buying a used rig from a dealer or a person. Tax Tax Tax. Heck if a used rig is sold 5 time they just keep collecting.

January 17, 2008 at 2:18 am #355776

Bass Cat Boats
Keymaster

Arkansas vehicles new and used are taxed on the amount if they are over $2,500. The boat is not DOT regulated, and is only taxable as a new unit at the dealership. BCB
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