State Sales Tax on A Canoe Purchased in Canada (Read 2157 times)
Bart
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State Sales Tax on A Canoe Purchased in Canada
Apr 7th, 2021 at 2:18am
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Question:  If I purchase a Souris River Tranquility Solo at the factory in Atikokan and then decide to register it in say; Minnesota or Iowa, do I have to pay state sales tax (when I register)?  I was not charged any kind of tax when I bought the canoe and this got me to wondering.  Thanks for your insight.
  
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BillConner
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Re: State Sales Tax on A Canoe Purchased in Canada
Reply #1 - Apr 7th, 2021 at 10:45am
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That is what I had to do in Illinois, when registration was required. If you live in a state without canoe registration, you are supposed to voluntarily pay sales tax.  Yup.

PS congrats on the Tranq! I love mine.
  
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Bart
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Re: State Sales Tax on A Canoe Purchased in Canada
Reply #2 - Apr 7th, 2021 at 6:24pm
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Thanks, Bill.  What I figured. 

Glad to hear you like your Tranquility.  Looking forward to getting her wet soon.
  
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Mad_Mat
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Re: State Sales Tax on A Canoe Purchased in Canada
Reply #3 - Apr 12th, 2021 at 6:31pm
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technically, you would be paying Use Tax - the catch 22 for any purchases which were not charged sales tax.

in CO, you are expected (yuh, right!) to self pay by reporting on your state income tax return
  
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BillConner
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Re: State Sales Tax on A Canoe Purchased in Canada
Reply #4 - Apr 13th, 2021 at 10:59am
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Yes.  I also found if you say bought in Ely MN, with a sales tax of 7.375%, and I lived in Oak Park IL with a sales tax of 10%, you only owe the difference to IL.  HST in Canada does not count.

I think this is same for any product bought out of state but without registration it depends upon self reporting.  Technology will probably eventually allow states to know if this without relying on self reporting.
  
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