Marine Personal Property Tax Return?

Shankopotamus · Feb 22, 2010

Hey guys, I bought my first boat April 2009. I just received this tax return in the mail. What is this exactly and what can I expect from it?
I am using the NADA "average retail" as the value...

Thanks in advance...

Randy · Feb 22, 2010

You can expect a tax bill for it. Also refered to as a luxury tax! It does not really matter what value you assign to it. They will assign it what ever value they want to.

Trizey · Feb 22, 2010

I'm assuming you bought a used boat?

If the value is under a certain amount (maybe $7500 or $8500) then you pay nothing. I would take it to my county tax office and let them know.

Shankopotamus · Feb 22, 2010

It's a used bass boat. NADA average retail is $9720, less trailer value $1075, total $8645.

Jerkbait Junkie · Feb 22, 2010

I have had 2 boats so far and have never heard of this. One was under $7000 and the other is more than that. What makes you have to pay this tax?

Trizey · Feb 22, 2010

Shankopotamus said:
It's a used bass boat. NADA average retail is $9720, less trailer value $1075, total $8645.

It's based on your bill of sale amount I believe.

Randy · Feb 22, 2010

Trizey said:
It's based on your bill of sale amount I believe.

Nope it is based on the amount they think the boat is worth. They have a table listing "most" boats.

What makes you have to pay this tax? Well technically you are suppose to go tell them but who is that honest? They find out most of the time by either your dealer who forwards the info or most of the time the DNR when you register the boat. They can back tax you if they want to.

And unless it has changed the value for paying the tax is $500.00. If the boat costs more than 500.00 you are suppose to pay a tax on it. This includes boat, motor and I believe, major accessories.

Randy · Feb 22, 2010

BTW, my mother was the tax accessor in my county and we faught over this. She knew I had the boat the minute I bought it. She is now retired!

Trizey · Feb 22, 2010

Randy said:
Nope it is based on the amount they think the boat is worth. They have a table listing "most" boats.

What makes you have to pay this tax? Well technically you are suppose to go tell them but who is that honest? They find out most of the time by either your dealer who forwards the info or most of the time the DNR when you register the boat. They can back tax you if they want to.

And unless it has changed the value for paying the tax is $500.00. If the boat costs more than 500.00 you are suppose to pay a tax on it. This includes boat, motor and I believe, major accessories.

You're right on the value....I remember now. But in my county there is a threshold for the value amount. Anything above that amount you will have to pay taxes.

TheBishop · Feb 22, 2010

I bought my boat in march of 2007, paid 22k. 2 and half years and 150 hrs later they valued my boat at 25k! I called them and said SOLD! They told me they did not account for depreciation! I was flabergasted! I argued with them for days to no avail. The story is long, and you'd be amazed at some of the garbage they told me. My blood boils when I think about it, the difference would only have been about a $100. (The cost of a good rod) but the principle is what bothers me. BRING ON THE FAIR TAX!

Backlasher82 · Feb 22, 2010

It is based on fair market value. That includes the boat, motor, trolling motor, electronics, etc. It excludes the trailer because you pay ad valorem tax on it when you buy the tag.
They ask you to list all the equipment on the boat and give them a value on it. Then they ignore the value that you put on it and tell you what they think it's worth.

Thankfully, there is a procedure for protesting their appraisal and if you have a valid position you can get the appraisal and your taxes lowered.

I appealed my tax appraisal last year as the value they had placed on my marine property was a little over $15,000 and by looking through the Boat Trader I found several examples of 1 or 2 year newer boats where the asking price less the value of the trailer was less than $10,000.

Using this information I filed my appeal by mail and my tax bill reflected the lower appraised price.

The point is, the bottom has fallen out of the market and the NADA book value means nothing these days. The tax appraisal is based on fair market value and if you can find proof that comparable boats are selling for less than blue book then that is the fair market value. Do some research and save some money, it's worth it!

TritonBuckHunter · Feb 22, 2010

I had a boat for 3 years and never paid anything. I bought it from a dealer. Was I suppose to pay something. My boat was around the $14k mark. Could I have to pay back taxes on the stupid thing I don't even have anymore?

Mechanicaldawg · Feb 22, 2010

The first year I set the value of my boat and it was accepted by the county.

Next year I reduced the amount, significantly, and they rejected my appraisal and set it for me. It was still significantly less than the previous year, however.

I know people who purchase new boats every other year and never have received the Marine Tax assessment form from their county.

sbfowler · Feb 22, 2010

I pay these on my Stratos and Alumacraft and the values are in-line, so I don't fuss.

What I did raise cane about was a tax bill I got an Old Town 16 foot canoe. I had to register it since I put a trolling motor on it for getting up in the timber on the north end of Oconee. They sent an assessment for several thousand dollars worth of value.

I went rounds with them trying to prove that this was a $550 (new) canoe, a $75 Minn Kota trolling motor battery and a roof rack to transport it back and forth. I wrote all of the appeals and finally got someone on the phone. I offered to either email a picture for verification or I would gladly bring the canoe to their offices for a personal inspection. The tax bill went away after wasting much of my time. I should've sent them a bill...

Backlasher82 · Feb 22, 2010

TritonBuckHunter said:
I had a boat for 3 years and never paid anything. I bought it from a dealer. Was I suppose to pay something. My boat was around the $14k mark. Could I have to pay back taxes on the stupid thing I don't even have anymore?

I had my boat for 3 years and didn't get a tax bill for it until I renewed the boat registration, the DNR notifies the county of your marine property.

Shankopotamus · Feb 22, 2010

Now MY blood is rising! I will fight them if they play that crap with me! I also will list the equipment that came with the boat when I bought it, not upgrades (like my HDS5) that I purchased since.

Backlasher82 · Feb 22, 2010

Shankopotamus said:
Now MY blood is rising! I will fight them if they play that crap with me! I also will list the equipment that came with the boat when I bought it, not upgrades (like my HDS5) that I purchased since.

Just find out what the fair market value is of your boat based on the asking price of comparable boats in this market. Do NOT use NADA or any other book value, that does not reflect true market value in this economy. They will send back an appraisal based on book value with instructions on how to file an appeal. File your appeal in writing by the deadline date stating your case and how you came to determine fair market value.

If they reject your appeal, it's far from over. There are other remedies up to and including a pleading your case in front of a jury of your peers.

If it comes to that, just walk in with the current copy of the Boat Trader showing ads for similar boats in a reasonably close vicinity to you and your case is a slam dunk. Keep your cool and present your case calmly in writing to the tax assessor's office and chances are very good they will accept your appeal. Or at least adjust the appraised value to be more in line with fair market value.

For example, last year their assessment for my marine property was $15,203. My appeal set the value at $10,500. My tax bill was based on an appraised value of $11,590.

I'm used to dickering over price, I can live with that appraisal.

JR'S GUIDE · Feb 22, 2010

Don't feel bad the county I pay boat tax in has no access to public waters, so it must be a sit in the yard tax.

dslayer2 · Feb 22, 2010

I have to agree with TheBishop, BRING ON THE FAIR TAX. Nothing fair about the way we are being taxed right now.

Randy · Feb 22, 2010

JR'S GUIDE said:
Don't feel bad the county I pay boat tax in has no access to public waters, so it must be a sit in the yard tax.

Nope. Just a luxury tax because you can afford one. I asked my mother the difference in my boat and her riding mower. No way to track the riding mower. Because of registration there is a way to track the boat. So remember registration means tax.

Marine Personal Property Tax Return?

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