Tax info on sleds
- Thread starter jasono
- Start date
polarisrider1
New member
famousguy you are 100% correct. Look we need your money guys. Michigan is in a sad state of affairs. But, we do have the trails, the lakes, and the UP. Oh! and it snows from time to time and sometimes all the time. Anyways, Everytime a sled sells new or used, tax gets paid on it by the new owner based on the purchase price. Oh! would you like to know about our life time trailer plate racket the state has going?
I was also looking into registering the boat and trailer in Mi as well. My next trip up I will bring the paperwork and head into the SOS office to see what I might be able to do. Between sales tax and property tax they are going to get me either way. I use all of my toys in Mi anyway.
polarisrider1
New member
ALL sales. Private or not. Big fine if pulled over and not registered. We just have a registration. No title for sleds. A sled can change hands 1-100 times tax due each time sold.
polarisrider1
New member
Just make them legal is my answer. Pay the tax and move on. It isn't fun riding illegal to save a buck or two. If you sell a car to Immediate family than you can get out of sales tax. I don't think you can do this with sleds to your kids. I never done that.
anonomoose
New member
Can you clarify, does that apply to private sales of used vehicles as well as dealer sales in Michigan? (Some states don't tax private sales.)
When you register a private sale, they ask for the sale price, and you pay tax on that. If the product isn't registered, then of course no tax is required. But sleds need to be registered and SOME atv's get titled boats get registered, and all of those you pay a tax. If you transfer to an immediate family member no tax is due. Otherwise, you pay 6%. If you lie and say the price was well below market value, they have an investigative team that works on those to farret out guys who cheat and there is penalty and the tax to be paid once the "rest of the story" is found out. I think all new ATV's come with titles nowadays, so no avoiding tax. But since atv's don't have plates once it is used, no tax or registration is due and you can just pass it around from there on, unless you want the title to be transferred with the sale.
When you register a private sale, they ask for the sale price, and you pay tax on that. If the product isn't registered, then of course no tax is required. But sleds need to be registered and SOME atv's get titled boats get registered, and all of those you pay a tax. If you transfer to an immediate family member no tax is due. Otherwise, you pay 6%. If you lie and say the price was well below market value, they have an investigative team that works on those to farret out guys who cheat and there is penalty and the tax to be paid once the "rest of the story" is found out. I think all new ATV's come with titles nowadays, so no avoiding tax. But since atv's don't have plates once it is used, no tax or registration is due and you can just pass it around from there on, unless you want the title to be transferred with the sale.
Its the law in Michigan you pay sales tax on the purchase price (not the msrp) of all sales before any trade-in or any other rebates etc. Trade-ins and cash incentives are considered your cash money and cannot be used to lower the taxable price of the vehicle. If you buy a vehicle out of state and come to Michigan to register it for the first time, you are required to pay use tax in the same amount as the sales tax you would have paid had you bought it in Michigan. If you bought the vehicle in another state and register it there first, you do not pay tax when you register in Michigan.
Even if you buy stuff on the internet and have it shipped to you in Michigan and you paid no Michigan sales tax at the time of purchase, you still owe the tax and failure to pay is tax evasion. You pay it on your income tax return. With all the computers, nothing you do is ever gone away, it can come back and bite you years later.
Be careful falsifying any info on title transfers to get out of paying tax due. There are 2 parties to the sale and the other party might not tell the same lie as you and once you sign your name, its perjury. The state of Michigan is wise to this scheme.
I am not a vehicle dealer but I have a Michigan Sales Tax License.
Even if you buy stuff on the internet and have it shipped to you in Michigan and you paid no Michigan sales tax at the time of purchase, you still owe the tax and failure to pay is tax evasion. You pay it on your income tax return. With all the computers, nothing you do is ever gone away, it can come back and bite you years later.
Be careful falsifying any info on title transfers to get out of paying tax due. There are 2 parties to the sale and the other party might not tell the same lie as you and once you sign your name, its perjury. The state of Michigan is wise to this scheme.
I am not a vehicle dealer but I have a Michigan Sales Tax License.
<blockquote><hr size=0><!-quote-!><font size=1>quote:</font>
But since atv's don't have plates once it is used, no tax or registration is due and you can just pass it around from there on, unless you want the title to be transferred with the sale.<!-/quote-!><hr size=0></blockquote>
In Michigan, It is unlawful for a seller to sell or transfer an ORV without transferring the title or for a buyer to purchase or acquire an ORV without obtaining a title. If an ORV is purchased from someone other than a dealer, the buyer must apply for a title.
If an ORV is purchased through a dealer, application for a title will be made by the dealer on behalf of the buyer.
But since atv's don't have plates once it is used, no tax or registration is due and you can just pass it around from there on, unless you want the title to be transferred with the sale.<!-/quote-!><hr size=0></blockquote>
In Michigan, It is unlawful for a seller to sell or transfer an ORV without transferring the title or for a buyer to purchase or acquire an ORV without obtaining a title. If an ORV is purchased from someone other than a dealer, the buyer must apply for a title.
If an ORV is purchased through a dealer, application for a title will be made by the dealer on behalf of the buyer.
harvest1121
Well-known member
Well it explains why people do not want to buy snowmobiles or a second houses in Michigan. Too much tax brings you less tax.
polarisrider1
New member
harvest1121, not sure what the 2nd house part has to do with anything? I have a few houses (more than one) in MI No sales tax paid on any of them. Property tax is to be expected. Snowmobiles, the 6% sales tax has never slowed me down. Sleds are still less money in MI than in states like Illinois. The SOS office knows what your sled is worth at the time you register it. They have a price range it should fall in. If it is out of the range they ask questions like is it from a relative. is it salvaged, etc. They are very wise to this. I grumble and pay. It's part of life. Ride is here! Off to Novi show!!! I may buy a new sled???
harvest1121
Well-known member
Michigan does not give you credit on a trade in so you have to pay more tax. If you do not have homestead in Michigan the taxes almost double. I was on Michigans tax estimator to see what taxes would be on a house. If you are not homestead in Watersmeet on a $300,000 house your taxes are $15,000. In wisconsin on that same house you would be about $3 or $4k. I have owned a lake house in Michigan around Kalamazoo and the taxes doubled when we bought it.
snobuilder
Well-known member
I live in WI and bought an ATV in MN in June 09, I was required to pay MN. sales and co. tax of (i think) 6.75% before leaving with the vehicle.
I was told I could get around the MN tax only if I could prove the ATV was for farm use OR the vehicle was delivered into the state of WI.
When I registered the ATV in WI I was given credit for already paying MN sales tax.
This is a new law in MN in the past year or 2.
In the past i had purchased new rec. vehicles in MN and resold in WI without reg. and therefore NOT paying sales tax...the new law takes out much of any profit i would realize and has put an eand to my past practices ....As a result, MN dealerships have lost my business.
I was told I could get around the MN tax only if I could prove the ATV was for farm use OR the vehicle was delivered into the state of WI.
When I registered the ATV in WI I was given credit for already paying MN sales tax.
This is a new law in MN in the past year or 2.
In the past i had purchased new rec. vehicles in MN and resold in WI without reg. and therefore NOT paying sales tax...the new law takes out much of any profit i would realize and has put an eand to my past practices ....As a result, MN dealerships have lost my business.
D
Deleted member 10829
Guest
snobuilder,
Unless you are a dealer, why would you think you could buy a new recreational vehicle and not pay tax in EITHER state? All of these states are getting tougher on tax issues because of people wanting to cheat the system.
Unless you are a dealer, why would you think you could buy a new recreational vehicle and not pay tax in EITHER state? All of these states are getting tougher on tax issues because of people wanting to cheat the system.