In my last blog I told the tale of two customers who bought watercraft from private parties and the trailers that carried the watercraft were included as part of the sale. Last time I stressed the need to have proof of prior ownership in order to register the trailer in MA. In this blog I will stress the need to get a bill of sale that lists the trailer separately from the boat including the price paid. These days the sales tax for the trailer is paid at the RMV at the time it is being registered. Often clients will come in with a bill of sale that mentions only the watercraft with the trailer not mentioned at all. Or, even if the trailer is mentioned, there is only one price listed. For instance the bill of sale may read like this " I sell to John Doe a 2007 Yamaha XV Waverunner with trailer for $3,000". In this case the RMV does not know how much to tax the trailer and would bounce the registration transaction. In order to register the trailer the bill of sale must list a separate price for it.
Remember, in these cases the buyer is buying two distinct items, the watercraft and the trailer. The buyer will be taxed on both items so the bill of sale(s) must be written so that each item is taxed correctly.
