Jump to content
MSBruno

Buying First Boat - What to do, steps?

Recommended Posts

So I think I've found the boat, but I'm unsure what the tricks and steps are. I remeber reading on here to have the receipts massages to have the motor vs boat vs trailer and have them priced according on a reciept. Also, what needs to be registered and insured.

 

What are the steps? Let's say I see the boat and like what I see ... where do I go from there?

 

Thanks in advance.

Share this post


Link to post
Share on other sites

Is this new or used?

Dealer or private?

 

Either way, you want to water test it. After that and it's back on the trailer check the lower unit lube for signs of water, check for any water in the bilge (leaks in hull), check all lights and switches (breakers) on the boat, have the battery (batteries) checked and tested, make sure all fittings and hinges and screws are tight.

Go over the trailer, lights, coupler, springs, tires and bearings.

Trailer has to be licenced by OMT and the boat has to be registered if over 10 horsepower with Transportation Canada.

 

As far as insurance, that is up to you, but highly recommended to have liability at least on it. It doesn't take much of an accident or injury anymore to reach a million dollars.

 

I am sure I have left some items out and others will add to this.

 

Good luck and enjoy your ride

 

Tom.

Share this post


Link to post
Share on other sites
Is this new or used?

Dealer or private?

 

Either way, you want to water test it. After that and it's back on the trailer check the lower unit lube for signs of water, check for any water in the bilge (leaks in hull), check all lights and switches (breakers) on the boat, have the battery (batteries) checked and tested, make sure all fittings and hinges and screws are tight.

Go over the trailer, lights, coupler, springs, tires and bearings.

Trailer has to be licenced by OMT and the boat has to be registered if over 10 horsepower with Transportation Canada.

 

As far as insurance, that is up to you, but highly recommended to have liability at least on it. It doesn't take much of an accident or injury anymore to reach a million dollars.

 

I am sure I have left some items out and others will add to this.

 

Good luck and enjoy your ride

 

Tom.

 

Private deal

 

40HP engine

Share this post


Link to post
Share on other sites

buy boat.

get registration number of boat on one receipt with price of boat

on a second receipt

get VIN of trailer and price of trailer (keep this low as you pay tax on it immediately)

Also get

The MOT transfer paper buyers portion from the trailer registration. THe person who sell it to you retains a part of this paper and his plates.

 

take boat receiopt to government office in your town to transfer registration of boat. THis is free and it took me 10 minutes

 

take trailer receipt and trailer ownership transfer paper to MOT place and get trailer transfered to you and get new plates (unless you already have trailer plates). Here you pay for plates and tax on trailer. Cost me a total of $65 I think.

There you are done.

 

It is also useful to know the sellers name, address and phone numbers for these processes

Share this post


Link to post
Share on other sites

When you transfer the boat registration you will have to pay tax on the purchase price of the boat.

Share this post


Link to post
Share on other sites
When you transfer the boat registration you will have to pay tax on the purchase price of the boat.

 

I dont think you do, I didn't anyways..... just on the trailer !

Share this post


Link to post
Share on other sites

I just had a look at my receipts from buying a 16' boat, 65 HP motor and trailer (private sale, used) three years ago.

 

I paid the trailer license fee and I also paid 8% Ontario sales tax on the entire package. I have a receipt for "Motor Vehicle Transfer", on which the clerk wrote "Taxes paid on boat and trailer, motor".

 

The (federal) transfer of registration on the boat was free, but if I recall correctly I had to show that I had paid the tax on the boat before it would be issued.

Share this post


Link to post
Share on other sites
When you transfer the boat registration you will have to pay tax on the purchase price of the boat.

Not true. I just did it 3 weeks ago. You pay tax on the trailer when you change over the reg but not on the boat. It is possible that the gov will send you a tax bill in the mail later but I have not received on yet for the boat. That is why you whould have 2 receipts, one for boat and one for trailer.

Share this post


Link to post
Share on other sites

Well sorry, I'm telling you I was looking at the receipts when I typed the last post, and I was charged PST on the boat.

 

---

 

EDIT - I had the price itemized for each one separately on the receipt I got from the seller. I was charged PST on the whole package (total price).

Edited by Jocko

Share this post


Link to post
Share on other sites

You have the option of paying now or paying later when you License the boat.

A few days , months or years later you get a letter asking if you ever paid the tax on the boat.

Share this post


Link to post
Share on other sites

I just did my boat a couple of months ago and you have to go to the MTO for your trailer and pay tax on the whole thing there plus plates. Then you need to go to Service Canada to register the boat but make sure you hang onto the receipt because they want to see it or they will not register your boat.. it is free of charge and only takes about ten minutes. Nobody seems to care about the motor only whether or not it is over or under 10 hp.

Share this post


Link to post
Share on other sites

You will have to pay tax on the boat, it may not be today or even next year, but they will send a letter to you asking for proof that you paid the tax. Then they might even ask the seller and buyer questions. One wrong answer could lead to heavy fines and possible jail time! Do yourself a favor, PAY THE TAX!

Share this post


Link to post
Share on other sites
You will have to pay tax on the boat, it may not be today or even next year, but they will send a letter to you asking for proof that you paid the tax. Then they might even ask the seller and buyer questions. One wrong answer could lead to heavy fines and possible jail time! Do yourself a favor, PAY THE TAX!

There is no doubt about paying the tax but you just have to wait. It doesn't happen immediately.

Share this post


Link to post
Share on other sites
There is no doubt about paying the tax but you just have to wait. It doesn't happen immediately.

 

In my case it did. I wouldn't have been able to change the boat registration into my name without showing proof that I had paid the tax. I believe that's why the clerk at the license bureau annotated my "declaration/tax receipt" to show that the tax was paid on boat, motor and trailer (not just the trailer).

 

All of this begs the question of why we have to pay tax on second-hand goods in the first place. No matter how many times some things are sold, the government gets sales tax after sales tax after sales tax on the same damned item. It's a bloody rip-off.

Share this post


Link to post
Share on other sites

Went to:

 

Service Ontario - Paid 8% tax on cost of trailer + $35 Fee (included plate)

Service Canada - Transfer title, no cost. I asked about tax on the vessel and motor and they said never charged tax at service Canada

Share this post


Link to post
Share on other sites
All of this begs the question of why we have to pay tax on second-hand goods in the first place. No matter how many times some things are sold, the government gets sales tax after sales tax after sales tax on the same damned item. It's a bloody rip-off.

 

Just you wait, pretty soon you will have to pay tax on getting your hair chopped off every time it grows

Share this post


Link to post
Share on other sites

Just bought a used boat this week privately.

 

Went to Service Canada and had the license transferred. Free, 5 minutes, no taxes remitted at that point or questions asked.

 

Went to the MTO to get plates and the clerk asked if I wanted to pay my tax then. I said "sure" because eventually I knew I would have to and paid tax on the entire package (at 8%). She wrote "Tax paid on boat, motor and trailer".

 

My experience was identical to Jocko's account except for the fact that I paid all of my tax at the MTO office. I am pretty sure you could choose to remit your taxes at a later date (how, I do not know). I doesn't seem like Service Canada is set up to take taxes on your purchase but from my experience, the MTO certainly was and they indicated that tax was remitted on the boat/motor as well as the trailer.

Share this post


Link to post
Share on other sites

So you pay the tax on the boat purchase price? Why would you not have the seller give you a bill of sale then saying you paid $10 for the boat? Doesnot matter if it is a $40000 Ranger or a $500 aluminum, courts will never rule on consideration, ie what you paid for something. Or am i way out in left field here?

Share this post


Link to post
Share on other sites

There are no "blue book" values for boats; so, technically, you could do that JohnAB and save yourself a bunch on the tax. I suppose you could also say the boat was given to you. However, I cannot speak to whether you would get in trouble for doing this. If you make it sound reasonable, I would imagine it would slide, but a $40K Ranger listed on the bill of sale for $800 might raise some eyebrows. Not sure what would happen after that though.

Share this post


Link to post
Share on other sites
Went to the MTO to get plates and the clerk asked if I wanted to pay my tax then. I said "sure" because eventually I knew I would have to and paid tax on the entire package (at 8%). She wrote "Tax paid on boat, motor and trailer".

 

My experience was identical to Jocko's account except for the fact that I paid all of my tax at the MTO office.

 

I paid the full tax at the MTO license bureau too, not at Service Canada. My receipt is titled "Declaration/Receipt - Motor Vehicle Transfer" and the Header says "Ontario - Ministry of Finance". On this receipt the clerk wrote, in large script, "Taxes paid on boat, trailer and motor". Tax was 8% on the whole package.

 

So you pay the tax on the boat purchase price? Why would you not have the seller give you a bill of sale then saying you paid $10 for the boat?

 

The receipt states - "For motor vehicles subject to tax on fair market value, this will be the greater of wholesale/appraised value or decalred value. For all other vehicles, this will be the decalred value."

 

If you bought a NEW boat, motor and trailer, you would already have paid the PST to the dealer. For a used boat, motor and trailer bought in a private transaction, I had to pay the PST to the Ontario Ministry of Finance (through the MTO license bureau).

 

I don't see why experiences should differ but if they actually do, then either the gov't owes me money or others should have paid tax immediately and somehow didn't. :unsure:

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×