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]

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:

What documents will I need?
All documents must clearly identify the vessel by hull identification #, assigned boat # (ex: MD 1234 AB), or USCG documentation #.

Vessel is currently titled in Maryland
Original Maryland title (properly assigned – purchaser name, seller’s signature and date, purchase price)
Section 2 – taxes/fees – must also be calculated and entered
Sections 4 through 7 must also be completed, all purchaser’s must sign in section 7
Original Certified/Notarized Bill of Sale if purchaser’s name, sale date or price is missing from assignment of title
A bill of sale​ must include the names of the buyer and the seller, date of sale, seller’s signature, amount of sale and vessel description (year, manufacturer, hull identification number and/or current registration number).
Original lien release if seller’s title shows a recorded lien

Some states tax only the boat, motor not taxed if private sale, and trailer is separate tax. Thus I usually write separate bills of sale for boat, motor, and trailer.

 

[colbysmith]

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]

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.