New Jersey cutting its boat tax

[elcue]

If anyone is looking to purchase a new boat in Jersey or surroundings states should wait a bit till this new law passes. They passed a bill 33-1 in favor of cutting the tax on a bout from 7% to 3.5%. Im not sure what the tax rate is in surrounding states but that can save you a nice chunk on these new higher priced boats. Wish I was shopping now be a good excuse for the wife. "Babe we gotta buy it now they cut the taxes in half!!"

 

[Ronnie]

Is the tax referenced a one time sales tax or a recurring luxury tax?

 

[elcue]

We don't have luxury tax in NJ. Currently we just pay %7 sales tax when purchased then pay to register it every year. I believe its $28.00 to register it a year.

 

[BoaterGuy]

Unfortunately it doesnt work that way for out of state purchases, unless you register it in NJ you will have to pay your own states sales tax.

However, I wish MD would reduce their sales tax on boats to 3.5%. Thats awesome for NJ residents, congrats!

 

[elcue]

Yea true you would still have to pay where you register. The idea was to keep people here than shopping out of state for better deal. I mixed that up.

 

[CFD3Captain]

Yea true you would still have to pay where you register. The idea was to keep people here than shopping out of state for better deal. I mixed that up.

States just need to work together. For example, what keeps your residents from buying out of state then registering in NJ? For example.....if I buy a boat in PA, they don't charge me ANY sales tax, but I have to pay it in Ohio when i get the boat home. I imagine the same deal would apply if I drove to NJ and purchased.

 

[Topper232]

Thanks for the heads up @elcue.

@CFD3Captain, I buy a lot of my cars in Pa, just being across the bridge, so I'd imagine that the same would apply for boats upon registering.

 

[CFD3Captain]

@Topper232 Right, I know they do not charge sales tax and I have to pay here in Ohio, I just meant by lowering the sales tax won't always make it any cheaper for someone to buy a boat in state......or do they only get the sales tax credit if they buy in NJ? Maybe that's whats meant buy. Because if not, what's to keep someone from buying in another state, paying no sales tax there then registering and paying the 3.5%

Anywho. doesn't affect me, I just thought it was interesting and would LOVE for Ohio to do the same LOL

 

[Topper232]

@Topper232 Right, I know they do not charge sales tax and I have to pay here in Ohio, I just meant by lowering the sales tax won't always make it any cheaper for someone to buy a boat in state......or do they only get the sales tax credit if they buy in NJ? Maybe that's whats meant buy. Because if not, what's to keep someone from buying in another state, paying no sales tax there then registering and paying the 3.5%

Anywho. doesn't affect me, I just thought it was interesting and would LOVE for Ohio to do the same LOL

Oops, I get your question now. Good point and good question.

 

[elcue]

Boat must be bought in NJ. I cant find the link to the article it was on nj.com the day I posted it here.

 

[SINBAD]

In DE we pay 3.75% on the trailer and ZERO % on the boat.