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Old 31-01-2015, 00:37   #1
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Ca use tax question

I am buying a boat in Oregon where there is no sales tax but was planing on using it part of the time in Ca. Does anyone have knowledge on how the use tax would apply? Do I need to keep the boat in Or for at least 6 months a year? Thanks in advance as I DO NOT want to pay Ca a huge amount of taxes!
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Old 31-01-2015, 01:12   #2
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Re: Ca use tax question

Are you a resident of CA or OR?
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Old 31-01-2015, 10:21   #3
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Re: Ca use tax question

Oregon.


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Old 31-01-2015, 10:31   #4
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Re: Ca use tax question

Google "California boat taxes" and get to the source. This topic has been beaten to death here.

California's Taxation of Vessels, Vehicles, and Aircraft: Out of State Purchases

FAQ - Use Tax on Purchases of Vehicles, Vessels, Aircraft - Board of Equalization

Good luck.
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Old 31-01-2015, 13:15   #5
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Re: Ca use tax question

I tried to decipher it before but I'm not smart enough to figure it out from the DMV Web site. Sorry if this is old news. It's really important for me


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Old 31-01-2015, 19:31   #6
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Re: Ca use tax question

There is a date at which all marinas have to turn in the boats there. May be January, seem to recall it was March in SoCal. That is for property tax purposes. Not an onerous tax but dependent on boats value and is payable annually.

Sales tax is levied on boats brought into California or purchased in California. The website detailed above should give you how long from purchase to relocation into CA that is needed to avoid the sales tax. That tax is significant and varies from County to County. doubt that you'd find it less than 8% and probably closer to 10%.
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Old 31-01-2015, 19:45   #7
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Re: Ca use tax question

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Originally Posted by Knuckledragger0 View Post
I tried to decipher it before but I'm not smart enough to figure it out from the DMV Web site. Sorry if this is old news. It's really important for me

Quite simply: YOU have to do YOUR own homework. What else can we do to help you except read it aloud?

It's all on their website.

We have NOOOO idea how long you plan to be here in sunny California.

Nor do the tax guys.
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Old 31-01-2015, 19:53   #8
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Re: Ca use tax question

Ok Stu, I won't try to get any help here....


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Old 31-01-2015, 20:06   #9
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Re: Ca use tax question

It doent matter where you live. CA wants its money. Not sure of the duration, but if the boat is in california on jan 1, that is the county you will owe money to.
Call any county tax collector and they will be happy to help you.
I had a long conversation about my boat with the local tax office here. They want to collect tax on my dinghy! But its not in their county. They also want to collect tax on the boat when i didnt own it. Anyhow its one of those things where you are guilty until proven innocent, so the best thi g you can do is educate yourself in advance. I found the best, clearest information comes from the tax collectors themselves.

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Old 31-01-2015, 21:31   #10
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Re: Ca use tax question

Good advice! I will call them. I did happen to speak to a yacht broker today who thought if the boat is out of CA for at least one year after purchase them no use will ever be charged! Of course property tax would still be due but that is minor in comparison!

However, as you say a call to the tax man is best.


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Old 31-01-2015, 22:04   #11
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Re: Ca use tax question

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Originally Posted by Knuckledragger0 View Post
Good advice! I will call them. ..........

However, as you say a call to the tax man is best.


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Good. Maybe they can read it aloud to you. Sorry you couldn't get ANY help here.

Geez...
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Old 31-01-2015, 23:43   #12
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Re: Ca use tax question

All I can tell you is I bought a boat while living in Hawaii. The boat was from New York. I shipped it to Ca. and stored it in a yard in Northern Ca. You guessed it...Got a tax bill. Tried to fight it. They would ask for documentation and when ever I sent it in, they wanted a rental agreement, then a documented statement...then....then...then. After 1 1/2 years of hassling with them, I finally paid it. To me, they just wanted money. I was on my way to Mexico when the thieves threatened to attach my house.
With the vessel I have now, I received my tax bill and told them my boat is out of country. If I ever decide to sell my boat, I'll do the sell offshore just to make sure they don't get their blood money. The money they collect from us rarely goes back into the boating infrastructure.
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Old 31-01-2015, 23:51   #13
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Re: Ca use tax question

C,

We have been reading through the DMV Web sites. It looks like if you (and me) keep it out of CA for over six months of the first year you don't owe use tax! Also, if not in CA in January 1st then no property tax either.


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Old 01-02-2015, 01:12   #14
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Re: Ca use tax question

OP, if you are talking about registration tax, you could just federally document your vessel with the coast guard and you wont have to worry about the registration if that os what you are worried about. But they will come after you for propery tax if they(the county) think that your boat is worth more than 5000 dollars...

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Old 01-02-2015, 10:29   #15
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Re: Ca use tax question

I just went through this with California. Talk about a complete rip-off for visitors. Here is what happened to me. We bought a Hake Seaward 32RK which is trailerable. The boat is USCG registered with home port Dover, DE. We trailered the boat to California and put her in a slip beginning in October. A few months later we received notice that because we had the boat in California waters on Jan 1 (one day only), we were required to pay a full year of property tax on the boat to LA County Tax Authority. It was 1% of the boats "assessed value". Also, they could hit you for sales tax also, but I don't know the time period that would trigger that. We didn't stick around to find out. Boat is now moved to San Carlos Mexico where we don't have to deal with the People's Republic of California.

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I am buying a boat in Oregon where there is no sales tax but was planing on using it part of the time in Ca. Does anyone have knowledge on how the use tax would apply? Do I need to keep the boat in Or for at least 6 months a year? Thanks in advance as I DO NOT want to pay Ca a huge amount of taxes!
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