Sales tax on by owner sale Maryland

jodaverrill@gmail.com

Any information on how Maryland sales and use tax is treated on a sale by owner. I'm thinking of meeting the buyer at a bank and having the bank confirm that the cashiers check is good, then sign the title over to the buyer. Does it have to be notarized? What do you do with sales tax?

thataway · Posted: Thu Sep 08, 2022 9:37 pm Post subject:

The new owner will pay sales tax in the state which he registers the vessel in. The seller does not collect sales tax.

Your plan is solid. Be sure that the buyer has arranged to have some bank officer available to confirm the cashier's check. Not all banks will do that.

The internet is your friend here:

colbysmith · Posted: Thu Sep 08, 2022 9:51 pm Post subject:

Some states title the motor separately. I did not know this until I purchased C-Traveler. It had a separate Ohio title, that I did not need for Wisconsin. However I assume all states title the trailer separately. When I registered the boat and trailer in Wisconsin, since I only paid one price, I listed the full price for the boat registration with the DNR and paid my sales tax then. When I registered the trailer with the DMV, I added a note and copy of my boat registration showing that all taxes were paid to the DNR.
Colby

jim-in-delaware · Posted: Thu Sep 08, 2022 11:14 pm Post subject:

If the boat is staying in Maryland, all taxes will be paid by the buyer to the State of Maryland. The boat will be registered through the Dept of Natural Resources and the trailer through the Dept of Motor Vehicles. You should also keep the trailer tag and the buyer should get a temporary tag for the trailer. He can do this at a place that offers tag services.