The retail sale of a boat is subject to the 3.00% State rate of sales and use tax with a maximum tax of $1,500 per article. Boats are not subject to the local and transit rates of sales and use tax. In the instance where sales tax has not been paid on the purchase of a boat, a use tax at the 3.00% State rate with a maximum tax of $1,500 per article applies to a boat purchased or received from within or without this State for storage, use, or consumption in this State. Gross receipts derived from the retail sale of a boat and the sales and use tax thereon are to be reported to the Department on Form E-500, Sales and Use Tax Return, or through the Department’s online filing and payment system.
For a business or person who is not registered with the Department and is required to remit use tax on a boat purchased or received from within or without this State for storage, use, or consumption in this State on which sales tax has not been paid, the business or person must file Form E-555, Boat and Aircraft Use Tax Return.