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Minnesota sales tax?

30K views 57 replies 29 participants last post by  vikingfan 
#1 ·
I know there is sales tax on new sleds from dealers. What about used sleds from dealers (there's tax on them as well I think)?
What about buying a new or used sled out of state and bringing it to MN? Used trailers we have to pay tax on still as well, correct?
I'm somewhat looking for a 2011 Rush & possibly a trailer. So I'm trying to way my options depending apon what comes up.

Thanks for any help.
 
#23 ·
What about Private party or dealership from out of state? That's the main question.
I do know new you still have to pay sales tax

Now Im not 100% but I think you should have to for used at dealership too(kinda a guess there).

But you shouldn't have to for used from private party out of state(almost positive), you should just have to pay the registration fee(7.50), and the trail fees(what are they like 60?) but no sales tax.
 
#9 ·
In MN you don't have to pay sales tax on a used sled from another state. I registered my 07 M8 in MN after buying it in Montana and beside the 8.50 to transfer the registration and another $50 for stickers there were no other fees. I registered mine around 5-5-10 (last spring).
 
#14 ·
I know there is sales tax on new sleds from dealers. What about used sleds from dealers (there's tax on them as well I think)?
What about buying a new or used sled out of state and bringing it to MN? Used trailers we have to pay tax on still as well, correct?
I'm somewhat looking for a 2011 Rush & possibly a trailer. So I'm trying to way my options depending apon what comes up.

Thanks for any help.

Was just at Stacy Hardware tonight. He still has an 11 rush for sale and the price keeps coming down. Give them a call.
 
#25 ·
You pay sales tax at the dmv when you register the sled in your name. The same is true for cars, trucks, motorcycles, boats, & atvs. I usually tell them I paid way less than I did to save some money on tax.
 
#29 ·
true. Maybe its just state sales tax but in every title transaction they ask you what you paid and then tax you off of that.
Call your local DMV to clarify. But you do not pay tax on a boat when purchased from a private party. However, you do pay tax on the trailer for the boat. On a sled I have never payed tax when buying privately. I did have to pay a registation transfer fee.
 
#30 ·
I called the DMV and the answer is you pay tax anytime you buy a sled from a dealer, either in state or out of state. And you do NOT pay tax on a sled from a private party, either in state or out of state. To further clarify, if you have a receipt/invoice/bill of sale from a dealership, you will pay tax. If you have a bill of sale/purchase agreement from a private party, you will not pay tax.
 
#31 ·
F mn.

Sale tax any tax funny how they (the state) can piss our money away on others who sit on there ass and do nothing. Paying them to stay home? make them work so we get something for our money. You the ones who work should be very MAD. But you have to go to work, like me every day so like me and the rest of us we cant take the time off from work to stop the stealing we are all to BZ working and paying
for all the others who just want to steal from you/us. Ya know I and others want out, what about all of you? Hay your home value go's down and your taxs go up up up and they lie and say the schools need more money BS.
The list go's on and on you know the BS. When the gov runs out of our money they will print more till you and I all go BROKE.
 
#33 ·
I don't know why people feel the need to guess.

Guessing is not necessary as all you have to do is check the MN snowmobiling regulations where it is all spelled out.

See: http://files.dnr.state.mn.us/rlp/regulations/snowmobile/snowmobileregs.pdf to remove all the guess work.

See page 8 where it says:
"Register your snowmobile in person at any deputy registrar of motor vehicles or at the DNR License Center in St. Paul. When you register your snowmobile you will need the make, model, year, serial number, engine size, and sales receipt that shows the proof of sales tax payment. Sales between private parties do not require payment of sales tax."

So the only question is: Is it a private party sale or not. If it is, then no sales tax. If it is from a dealer, then there is sales tax. Makes no difference if it was in state or out of state.
 
#34 · (Edited)
I know I'm reviving a seriously old thread but I have a question about sales tax on a new sled. Let's say I'm buying from an out of state dealer and said dealer is not charging me sales tax. If I were to have a hand written receipt as if the sled is being sold by a private party is there anything that says otherwise when I go to register the sled in MN? This is all hypothetical of course.
 
#35 ·
I know I'm reviving a seriously old thread but I have a question about sales tax on a new sled. Let's say I'm buying from an out of state dealer and said dealer is not charging me sales tax. If I were to have a hand written receipt as if the sled is being sold by a private party is there anything that says otherwise when I go to register the sled in MN? This is all hypothetical of course.
"New" sled from a private party?
 
#46 ·
Friends buy new sleds from Michigan every year and haul them back here and avoid tax all the time.The same goes with Iowa but when buying new in Wisconsin they charge you the WI. rate and tell you to pay the balance when in Mn at the DMV.
 
#47 ·
Okay I did some calling around to the DMV today to find out what the deal was. I also did some digging on the DMV website to get a better understanding. Based on what I was told and what I have read the stories conflict haha (go figure).

I called the Golden Valley DMV (MPLS didn't answer) and they said that they DO NOT charge sales tax on snowmobiles when purchased out of state. I then called the DMV in Sauk Centre by my cabin where I usually get my registration and they said that they DO charge sales tax on NEW snowmobiles purchased from a DEALER.

The DMV Website also states that there IS sales tax on NEW or USED snowmobiles when purchased from a dealer out of state (its called "Use Tax" at a rate of 6.875%) but there is NO sales tax on machines purchased through private party, new or used. Here is the link that explains it:

http://www.revenue.state.mn.us/businesses/sut/factsheets/FS156.pdf
 
#49 · (Edited)
I then called the DMV in Sauk Centre by my cabin where I usually get my registration and they said that they DO charge sales tax on NEW snowmobiles purchased from a DEALER.

The DMV Website also states that there IS sales tax on NEW or USED snowmobiles when purchased from a dealer out of state (its called "Use Tax" at a rate of 6.875%) but there is NO sales tax on machines purchased through private party, new or used. w.revenue.state.mn.us/businesses/sut/factsheets/FS156.pdf
That paragraph is correct. It's easy to avoid paying that tax, and so many have done it, so everyone has assumed it was correct. But tax will be collected on any sale through a dealer just not necessarily by the dealer. It's just too easy to create a bill of sale from a sled in SD as they have titles and MN does not.

I just purchased a used sled in March from dealer in SD. It would have been too easy to create a bill of sale, run it to the DMV and do the transfer and registration. I scrapped the idea when the "elected official" in my household reminded me that tax evasion probably wouldn't look too good. SO I bit the bullet and paid the $700. GRRRRR

The dealer in SD actually filled out the PDF from the MN website for me to take to the DMV to pay my tax and get it registered. It was so easy to go in and throw my money away.
 
#52 ·
Bump for another MN sales/use tax question I am looking for an answer on, and that I didn't see answered in the thread as of yet:

When you are an out-of-state buyer (not a MN resident) and are buying a new sled from a dealership in MN, do you have to pay sales/use taxes at the time of purchase at the dealer?

It may seem like an obvious answer to some, but my father and I (both non-MN residents) have bought several new sleds from MN dealers over the years (been a few years since the last one), and have never once paid sales/use taxes on those purchase at the MN dealer. My Dad is looking to buy a 2015 holdover at Country Cat in the next couple of weeks, and they're saying sales taxes will need be charged at the time of sale, which is contrary to our past experience.

The logic on not paying at time of purchase at the dealer has always been that as an out-of-state buyer you will pay sales taxes on the purchase price when you go to register the sled in your home state. This is still how it works in many US states; I just bought a new motorcycle in July of this year in MO, and I paid sales taxes locally on it when I went to the DMV to get title and tags straightened out. This is always how it has worked (in my experience) when buying a car/bike/sled/etc out of state.

I've tried to look up some government sources to answer the question, but the best answer I can find is a document put out by the MN DMV concerning off-highway/off-road vehicles and sales/use tax that says this:



Obviously, the first and third sentences in the above paragraph are hilariously contradictory, so it is basically useless.

So I guess the cliff notes here is: Has the law in MN changed in recent years concerning sales taxes on new sleds bought at MN dealers, but by non-MN resident buyers?
 
#56 ·
Typically the way it works is that on a non resident that buys out of state at the local dealer the dealer must charge sales tax. And then when the non resident goes to register it in their state the state will deduct the portion paid of the sales taxes that were already paid. Example is that in PA we have a 7% sales tax in my county. So, if I pay 7.275% in MN then I don't have to pay any more sales tax as it was fully paid in MN.

The key to this all is that a non resident that buys and picks up the item within the state pays sales taxes. If the item is shipping to the buyers state then the sales taxes are waived and the buyer pays his local state sales taxes. In the past on untitled items you might have gotten away with it and not paid a sales tax. But, like a lot of state PA has a title now and that's where they get you when registering the motor vehicle. It's all about the money !

Steve in PA but was at Country Cat today! That's a nice place you guys have here! We don't have any dealers like that in PA.
 
#57 ·
Unless something has changed, it is 100% up to the dealer whether they want to charge out of stators tax or not. There is a waiver form (can't remember the legal terminology) that essentially let's the dealer sign the sled over to a new party as transport out of state. Talk to the dealer first to negotiate. It's done all the time and I know both the AC and Doo/Poo dealers here will do it. Why would they care? As long as they have legitimate accountability for the good ol' IRS.


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