Does North Dakota Have Sales Tax on Boats?

North Dakota has a 5% sales tax on boats. There is no annual tax on boats in North Dakota. Businesses that rent watercraft require boat inspections. The sales tax rate on boats includes any applicable local taxes.
Watercraft registration is not required for documented boats in North Dakota. Helpful links are available for watercraft registration and renewal. North Dakota has a use tax on goods purchased tax-free outside the state and brought into North Dakota. This equals the sales tax rate.

Boat operators ages 12-15 must take a safety course and carry an education card to operate a PWC or boat over 10 hp. Owners must report transfers of ownership, abandonments, destructions, and thefts within 15 days.
To renew a boat registration, the North Dakota Game and Fish Department will mail a notice. If the notice is not received, call (701) 328-6300. Submit the renewal by providing vessel information and paying fees online or otherwise.

The North Dakota sales tax rate is 5%. There may be additional local taxes up to 3.5%. Exemptions include clothing and a list of others. There is a 3% sales tax on new mobile homes and vehicle rentals.

The North Dakota Use Tax taxes the use or consumption of tangible property bought in other jurisdictions with a lower sales tax rate and brought back into North Dakota.
Watercraft bought from an out-of-state dealer: Proof of sales tax paid OR a completed One-Time Remittance Form.

Some states do not assess sales or use tax on boats kept within their boundaries. Be cautious not to misrepresent where the boat is kept for tax purposes.
In an offshore closing, the delivery of the vessel must be made from the seller to the buyer outside of a state’s jurisdiction.

There are several ways you can legally write off some of the costs of boating, thereby reducing your tax burden. Let’s go over the following boat tax deduction scenarios: Donating Boats for Tax Deduction. Boat as a Second Home.