Tax Loop-hole Maine residents with NH registered boats?

[lawn psycho]

So here's a timely article regarding Maine trying to tax boats bought in New Hampshire.
What I'm not sure about is if a Maine resident buys a boat and never brings it too the State of Maine the first year, would they get hit with a sales tax if they brought it into Maine in subsequent years.
See article:
http://www.seacoastonline.com/articl...NEWS-912199997

[wifi]

Maine is crazy in taxing people from out of state. If you hold a job in Maine, and you live out of state, your entire family is liable for Maine income tax. So, for example, you live in Mass, work in Maine, your wife works in NH, you owe Maine income tax on your wife's NH salary plus your Maine salary and any other income you might have, no matter what state it is earned.

Have to love those that want to tax others to pay for their ownership expenses... what is their mantra.... Oh yes, "I only owe tax on my ability to pay it, if I own more than I can afford, then others have to pay my fair share" ....

[townsde]

Wifi. That sounds like double taxation to me. Didn't that cause a revolution in the past?

[lawn psycho]

Originally Posted by wifi

Maine is crazy in taxing people from out of state. If you hold a job in Maine, and you live out of state, your entire family is liable for Maine income tax. So, for example, you live in Mass, work in Maine, your wife works in NH, you owe Maine income tax on your wife's NH salary plus your Maine salary and any other income you might have, no matter what state it is earned.

Have to love those that want to tax others to pay for their ownership expenses... what is their mantra.... Oh yes, "I only owe tax on my ability to pay it, if I own more than I can afford, then others have to pay my fair share" ....

I don't think that's quite how it works. I beleive as a non-resident if you work in Maine and have a spouse who works in NH, they base your state deduction on the proportion of Maine derived income from your total income.

Regardless, once the housing market stabilizes, I will sell and move back to NH.

[Audiofn]

I had my boat registered in NH for a few years and when I purchased my land in ME I did not pay sales tax on it.

Jon

[lawn psycho]

Originally Posted by Audiofn

I had my boat registered in NH for a few years and when I purchased my land in ME I did not pay sales tax on it.

Jon

If you just own own a lot you're fine. If you claim residency and they find out, they'll come after you.

I'm thinking of buying a 10ft x10ft lot with a sink, microwave, and porta-potti and claim NH residency. Anybody looking for a beverly hillbilly cousin they want to sell some land too on the cheap? I'll even give you a cut of the moonshine sales

[Airwaves]

I saw that article last week. It seems to me the guy from Maine made two mistakes that cost him.

1. He purchased the boat THROUGH A DUMMY NH BUSINESS THAT HE ESTABLISHED FOR THAT REASON.
2. He brought the boat into Maine within a year of it's purchase and it remained in Maine for longer than 30 days.

I think the second item is the one that did him in legally although I am sure the establishment of a dummy company in a sales tax fee state to buy the boat in Florida did not endear him to the Maine tax collectors and produced the red flag.

Remember, it's not just a sales tax, it's a sales and USE tax.

[lawn psycho]

Originally Posted by Airwaves

I saw that article last week. It seems to me the guy from Maine made two mistakes that cost him.

1. He purchased the boat THROUGH A DUMMY NH BUSINESS THAT HE ESTABLISHED FOR THAT REASON.
2. He brought the boat into Maine within a year of it's purchase and it remained in Maine for longer than 30 days.

I think the second item is the one that did him in legally although I am sure the establishment of a dummy company in a sales tax fee state to buy the boat in Florida did not endear him to the Maine tax collectors and produced the red flag.

Remember, it's not just a sales tax, it's a sales and USE tax.

So what I want to know is, if you are a Maine resident and for the first year of ownership it never is in the State of Maine and then you decide later to move it onto a Maine lake, would the tax weenie alarm go off?

[Blue Thunder]

Originally Posted by lawn psycho

So what I want to know is, if you are a Maine resident and for the first year of ownership it never is in the State of Maine and then you decide later to move it onto a Maine lake, would the tax weenie alarm go off?

I would say so.
If you can prove that the boat was registered in another state for the first year, you will not pay sales tax. Example: purchase the boat in NH and register it there for one year, then register it in Maine from there on. The only problem with that would be the 75 day limit that you would be allowed to use the boat in Maine without it being registered there. Maine has no where near as agressive MP as other states and I've never heard of anyone being cited for it.

BT

[LIforrelaxin]

It amazes me what people will do to get around paying sales or use taxs.... now I admit to buying a boat in NH, and registering it there... but then again that is where I use it and my family owns waterfront property..... but you know, if I was going to be trailering it.... I would deal with the tax not worry about scamming the state, and pay the dam tax.......

Part of the problem in this country is that people are trying to live beyond there means.... if you can't afford the taxes on something and by it legally then guess what you can't afford it.....

Just do things legally people then you don't have to worry.....

[brk-lnt]

Originally Posted by LIforrelaxin

Part of the problem in this country is that people are trying to live beyond there means....

You are right, but at the same time, too many politicians think that every person with a decent income should be required to also support 3 non-working citizens.

I spent a week in China recently and saw people out sweeping the streets by hand. I think that the majority of the welfare/public-aid recipients should be required to do SOMETHING to earn their benefits (note, this is different than unemployment benefits).

Much of the tax burdens could be reduced or eliminated if we also eliminated some of of the public welfare programs that really do little more than convince lazy people not to attempt to earn a decent living.

[TOAD]

Originally Posted by LIforrelaxin

It amazes me what people will do to get around paying sales or use taxs.... now I admit to buying a boat in NH, and registering it there... but then again that is where I use it and my family owns waterfront property..... but you know, if I was going to be trailering it.... I would deal with the tax not worry about scamming the state, and pay the dam tax.......

Part of the problem in this country is that people are trying to live beyond there means.... if you can't afford the taxes on something and by it legally then guess what you can't afford it.....

Just do things legally people then you don't have to worry.....

The real reason there is a problem is because the taxes in this country and all of the states are so ridiculous that yes, folks will try and avoid them. If there wasn't so much waste, fraud and abuse of the taxpayers money then perhaps many folks would not mind paying the proper tax. I personally avoid the "TAXMAN" at every opportunity because I don't like seeing my hard earned dollars pissed away by government hacks.

[lawn psycho]

Originally Posted by LIforrelaxin

It amazes me what people will do to get around paying sales or use taxs.... now I admit to buying a boat in NH, and registering it there... but then again that is where I use it and my family owns waterfront property..... but you know, if I was going to be trailering it.... I would deal with the tax not worry about scamming the state, and pay the dam tax.......

Part of the problem in this country is that people are trying to live beyond there means.... if you can't afford the taxes on something and by it legally then guess what you can't afford it.....

Just do things legally people then you don't have to worry.....

Are you directing this towards me or too the guy in the article?

People seem quick to want to throw other people's money away but when it comes time for them to pay it's a different story. In your own post, you confess to being a non-resident and never having paid your state sales tax on your boat but then tell people they can't afford something because they want to avoid state sales taxes where possible? Hello pot, meet kettle.

If my boat was purchased in NH, stays in NH, and is registered in NH (as legally required to stay in Marina for summer), I certainly don't think Maine should get one penny from my boat.

Aren't you the one who wants to bring a sales and income tax to NH?

[LIforrelaxin]

Originally Posted by lawn psycho

Are you directing this towards me or too the guy in the article?

People seem quick to want to throw other people's money away but when it comes time for them to pay it's a different story. In your own post, you confess to being a non-resident and never having paid your state sales tax on your boat but then tell people they can't afford something because they want to avoid state sales taxes where possible? Hello pot, meet kettle.

If my boat was purchased in NH, stays in NH, and is registered in NH (as legally required to stay in Marina for summer), I certainly don't think Maine should get one penny from my boat.

Aren't you the one who wants to bring a sales and income tax to NH?

I am not picking on anyone here.... just making a statement.....

Now if you boat is purchased in NH stays in NH and is registered in NH.... then there is no way any other state can take you on it..... Because they will not know about it..... until you sell.... in which case you have to report any gain made on the sale as income.... and it would get taxed as income.

My comment is directed at the stories here of the idea of buying a boat in NH to get around paying sales tax in another state.... and the games of how to try and do it.... As I recall you have never said anything like this..... so how could I have intended to aim the comment at you.....

Taxes suck they always have.... but you know what, you just deal with them..... there is still now other country I would rather live in. As for sales and Income tax, yep I have said it many times, it is a certainty..... they will come to NH it is just a matter of when....

[brk-lnt]

Originally Posted by LIforrelaxin

in which case you have to report any gain made on the sale as income....

Has ANYONE ever made a GAIN on the sale of a boat? I don't think that has historically ever been possible.

[lawn psycho]

Originally Posted by brk-lnt

Has ANYONE ever made a GAIN on the sale of a boat? I don't think that has historically ever been possible.

The worst part about it is the jokes on boat owners in the depreciation department. Although spending quiet time on the lake on a sunny day in the summer is priceless IMO.

He obviously must not understand the term "basis".

NH will never have a sales tax. You'd wipe out many retail businesses. Heck, N. Conway and the malls in Newington and the Nashua area would probably cease to exist.

It's all those honest massachusetts taxpayers heading to tax free NH keeping NH's economy going

[OCDACTIVE]

Originally Posted by LIforrelaxin

I am not picking on anyone here.... just making a statement.....

Now if you boat is purchased in NH stays in NH and is registered in NH.... then there is no way any other state can take you on it..... Because they will not know about it..... until you sell.... in which case you have to report any gain made on the sale as income.... and it would get taxed as income.

My comment is directed at the stories here of the idea of buying a boat in NH to get around paying sales tax in another state.... and the games of how to try and do it.... As I recall you have never said anything like this..... so how could I have intended to aim the comment at you.....

Taxes suck they always have.... but you know what, you just deal with them..... there is still now other country I would rather live in. As for sales and Income tax, yep I have said it many times, it is a certainty..... they will come to NH it is just a matter of when....

The sales tax I don't think will ever come but the income tax unfortunately may. Never understood that.. the harder I work the more I am taxed. Absolutely crazy IMO.

We are all supposed to be treated equally except when it comes to taxes. What happened to the idea of a Flat Tax?

[lawn psycho]

Originally Posted by OCDACTIVE

The sales tax I don't think will ever come but the income tax unfortunately may. Never understood that.. the harder I work the more I am taxed. Absolutely crazy IMO.

We are all supposed to be treated equally except when it comes to taxes. What happened to the idea of a Flat Tax?

The crazy part is people think an income tax will majically erase they problem which is too much spending by those in office. I'm not so sure NH will see an income tax either. You have a lot of retirees in the state soley for the purpose of lower tax burden.

I say we tax anyone who lives on an island on Winnipesaukee a 50% income tax since they're mostly out-of-staters. Yeah, that would be fair and the "New England" way.....

[OCDACTIVE]

Originally Posted by lawn psycho

I say we tax anyone who lives on an island on Winnipesaukee a 50% income tax since they're mostly out-of-staters. Yeah, that would be fair and the "New England" way.....

I assume you are being sarcastic.... But we have to be careful considering if we constantly tax the out of staters they may not come to the state.. It is a fine balance.

[lawn psycho]

Originally Posted by OCDACTIVE

I assume you are being sarcastic.... But we have to be careful considering if we constantly tax the out of staters they may not come to the state.. It is a fine balance.

OCD, yeah I'm being sarcastic. Since LIlovestaxes wants to pay taxes carte blanc, I'm all for him paying instead of me

[OCDACTIVE]

Originally Posted by lawn psycho

OCD, yeah I'm being sarcastic. Since LIlovestaxes wants to pay taxes carte blanc, I'm all for him paying instead of me

I don't think thats what he was getting at but I won't speak for him either.

I would agree that people need to take responsibility for themselves and shouldn't try to find loop holes. It is the small % of people who do exploit these who cause for stricter regulations on us all whether it be taxes or other restrictions.

[chipj29]

Originally Posted by OCDACTIVE

The sales tax I don't think will ever come but the income tax unfortunately may. Never understood that.. the harder I work the more I am taxed. Absolutely crazy IMO.

We are all supposed to be treated equally except when it comes to taxes. What happened to the idea of a Flat Tax?

I can't wait for NH to implement an income tax. That way, since I work in MA, I will have to pay 5.5% to Mass, AND I will get the honor of giving a slice to NH. AWESOME!

[OCDACTIVE]

Originally Posted by chipj29

I can't wait for NH to implement an income tax. That way, since I work in MA, I will have to pay 5.5% to Mass, AND I will get the honor of giving a slice to NH. AWESOME!

And don't forget the huge property taxes that were supposed to be in lieu of an income tax! But I personally do not think and income tax is in our near future. The Legislature just got railed on the income tax proposed to LLC's. So an overall income tax in the near future is probably not going to happen.

But I have been wrong before on predicting logical bills with this legislature.

That being said, I would be for registering "paddle" boats. The MP and Fire Rescue has to use its resources to help those whether it be engine powered or paddle driven. I think they should also pay for that. Also, not to open a can of worms, but how about Legalized Gaming? Just think of the bus loads of people that would be going up our mid-corridor to the north country if a casino was built there? The economic boom would be amazing! Instead of watching bus loads of people leaving our state with their money and spending it in conneticut.... It is only a matter of time before Mass does this, why not get ahead of it!

[LIforrelaxin]

So I got this thread going all over the place and well I will of course take responsibility for that. Of course I also didn't think it would develop into the discussion that have popped up. However there have been some good discussion points here.

Now, my comment regarding trying to aviod loop holes, is a comment specifically about that. There are many loop holes out there. We have all probably exploited one or two in our life time. Hell simply by buying a case of wine in NH and bring it into another state you have violated some laws.... My point here is this. If people stopped trying to find and use the loop holes and just paid sales and use taxes when they are supposed too, there would be generated income for the various states. And there also wouldn't be states comming after people after the fact.

Now I do often bring up Sales and Income Tax for NH. Why because everyone is concerned about there property Tax in NH. Do I like More Taxes. Hell No, no more then anyone else. However if the state needs money they are going to raise it one way or another. So do you want to continue to see your property Tax go up or do you want other forms of Taxation.....I was very interested to read OCD take that he thinks sales will never happen but Income might..... I actually always thought it would be the oppisite.... My thought on this derived from the Washington State Model... At anyrate.... NH has to make up its mind of how it wants to fund itself...if you take Sales and Income out of the equation. Then just remember we are all going to continue to pay more and more property Tax.

Now when it comes to stopping the increase in the ammount of Revenue the state needs that is another arguement. The advice I have there, is for people to get involved in the Government. Make sure you examine your choices come election time. Definately make sure you get out there and Vote. But remember that isn't enough. You must also Follow up, don't elect the right politicians and then think your job as a citizen is over. After that you need to make sure they do what they promise. And when they don't question them. Every Polictican Local, State, and Federal, has office, and they are supposed to make themselves avaialble to talk to people. Get involved, talk to these people, and let them know they are being watched, and graded against the promises they make.

Ok, whoa, I need to get off the soap box..... but anyways I feel better...

Lawn Pyscho.... You provide a great challenging converstation... it is always fun to converse with someone that is going to make you think and justify what you are saying......

[John A. Birdsall]

I have heard a rumor and I hope it is true that property taxes are gonna be reduced by 75% and it will be locked in at that with no increases. Then the state is putting a 6.5% income tax on all residence earning money in or out of the state of NH. And then put in in six months a sales tax of 3% on all goods.