If the sale does not occur in Rhode Island (i.e., the Lessees do not receive the boat in Rhode Island), no Rhode Island sales or use tax would be due. Developing a Predator State of Mind. RHODE ISLAND No Sales Tax on Used Boats 7% on New Outboard Motors Registrations www.dem.ri.gov 401-222-6800 This is a Title State Registration Only for Documented Boats Titles are issued for non-documented Boats 13'1" and over which they will round up to next even footage on the Title & Registration. If you physically buy the boat in Rhode Island you would owe no sales tax on it. Travel. Updated: May 6, 2019. Kerry spokesman David Wade said Friday the boat … A Faux Teak Future in Boatbuilding. Rhode Island is one of the most boat-tax-friendly states in the nation with no sales, use or property taxes on boats. The Rhode Island Vessel Bill of Sale is a legal document that will provide proof that a watercraft has been sold and purchased.The form will provide needed information about the seller, buyer, change of ownership and identification of the boat. Sales tax is due on the 20th day of the month following the date of purchase. There may be several ways to minimize or avoid sales and use taxes when buying a boat. By Raleigh P. Watson. AND; Vessels purchased before July 29, 1993. Remember When: A Lifetime Spent at Sea. Registrations only for 13' and under. Florida caps the amount of boat sales tax at $18,000 no matter the purchase price. Latest. Even if the sale occurred in Rhode Island, R.I. Gen. Laws § 44-18-30(48) exempts the sale of boats from sales and use tax. Rhode Island, for example, has no sales tax on boats. This document will require notarization. Wade noted the vessel was designed by Rhode Island boat designer Ted Fontaine and purchased in the state. A Department of Revenue spokesman said Kerry would be liable for Massachusetts taxes if he berthed the boat in … That has made the state something of a nautical tax haven. Charter Fishing in a Pandemic. It was built in New Zealand by Friendship Yachts. New Yorkers, for instance, pay sales tax on only the first $230,000 of a purchase price—or 8.25 percent, in most counties. Rhode Island repealed those taxes in 1993. What the sales tax exemption on boats means for Rhode Island and the boating industry is opportunity, Rich said. Sales Tax Insurance Proceed Letters: Are no longer accepted by the Division of … (For example, if you purchase a boat on Jan. 15, sales tax is due on Feb. The sales tax would be a one time tax on the purchase of an item. Delaware and Rhode Island do not require a sales tax at all, and in some states, sales tax is only applied up to a certain amount of the boat’s purchase price. PRIOR to titling and/or registering your boat with the DEM, you'll need to pay sales tax, which is 7% of the purchase price, at the Rhode IslandDivision of Taxation's main office on:. This makes it a popular place for yachting enthusiasts to purchase summer homes along scenic Narragansett Bay - one of the best places to sail in the Northeast. Travel. Rhode Island does have a Sales and Use Tax (7%) it simply doesn't apply to a boat purchase. Massachusetts sales tax is 6.25% of the total purchase price. Title & Register Your Vessel in RI. If sales tax is late, you will be subject to interest and penalties. Excise tax section can be reached at 401-574-8955 or via email tax.excise@tax.ri.gov. 20.) Travel. Boats. More Boats. Outboard motors purchased from dealers (private party sales are exempt from sales tax requirements). People are attracted here because of the absence of the tax, which means a lot more money is going into the state’s economy and into the boating industry. 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