Hailing Port and Tax Implication

[Jbingham]

Originally Posted by captain58sailin

Sure you have to offset the cost of the revolution.

Ha! Indeed!!

[maytrix]

Originally Posted by Jbingham

comes down to one simple thing. being caught. Here is the deal. if you live in MA. and operate in MA even if you are documented, they also want you to register the vessel in MA. if you register it, then you have to pay taxes or prove that you have paid taxes in the past. end of story.

Interesting on that - so if we bring our boat to MA in 2017 and register it, they'll then want taxes on it? Based off the original purchase price in 2012?

[maytrix]

Here's another interesting section though

Massachusetts Boat Registration, Licenses, Forms, & Information at DMV.org: The DMV Made Simple

It lists documented boats as an exception, so a Coast Guard documented boat shouldn't need registration, thus no taxes required?

[jtsailjt]

Originally Posted by maytrix

Here's another interesting section though

Massachusetts Boat Registration, Licenses, Forms, & Information at DMV.org: The DMV Made Simple

It lists documented boats as an exception, so a Coast Guard documented boat shouldn't need registration, thus no taxes required?

Not if you've owned and used it for at least 6 months out of Mass before bringing it into the state.

[Jbingham]

Originally Posted by maytrix

Here's another interesting section though

Massachusetts Boat Registration, Licenses, Forms, & Information at DMV.org: The DMV Made Simple

It lists documented boats as an exception, so a Coast Guard documented boat shouldn't need registration, thus no taxes required?

they certainly make it confusing. here is the link from the MA RMV. you MIGHT be ok having been out of MA so long.

Frequently Asked Questions About Motorboat Registrations

[maytrix]

Thanks

Here's one more.. Looking at what other states require, many do not exempt coast guard documented boats, but do except boats registered in another state if the remain for less than X number of days (anywhere from 30-90). Is coast guard documented considered the equivalent of being registered in another state? Or would you have to register just to be able to visit these other places?

Looking at the east coast, Georgia is the only place that has no exceptions and requires registration for everyone.. Guess its a place cruisers don't visit?

[bornyesterday]

Originally Posted by Jbingham

Here is a little article on our now secretary of state John Kerry taking advantage of the situation... a beautiful boat he has btw.

I don't like it.
Classic boats are beautiful but that one reminds me of Venice-in-Vegas.
Too shiny.

[Stu Jackson]

Originally Posted by maytrix

Thanks

Here's one more.. Looking at what other states require, many do not exempt coast guard documented boats, but do except boats registered in another state if the remain for less than X number of days (anywhere from 30-90). Is coast guard documented considered the equivalent of being registered in another state? Or would you have to register just to be able to visit these other places?

Looking at the east coast, Georgia is the only place that has no exceptions and requires registration for everyone.. Guess its a place cruisers don't visit?

You still have to read the individual state laws, just as was suggested.

I live on the west coast in Northern California, so I don't have the "luxury" of moving from state to state or the headaches that seem to come to some of you with your quite confusing tax laws.

I do however, read these "what do I do about tax things?" as they come up on a regular basis, and continue to shake my head at why some do not seem to be able to decide what to do with their own boats, based on the incredibly helpful links provided by contributors, and the examples provided.

There is an entire section on this website about Laws & Regulations. All one has to do is read a few of them and figure out what APPLIES to any individual.

Sure, the laws are confusing, and CA does aggressively pursue boats they think might be taxable, but there are simple answers, as provided earlier.

Good luck, planning and an appropriate response to the tax authority should do you well.

[tartansail]

Originally Posted by Jbingham

comes down to one simple thing. being caught. Here is the deal. if you live in MA. and operate in MA even if you are documented, they also want you to register the vessel in MA. if you register it, then you have to pay taxes or prove that you have paid taxes in the past. end of story.

so for us, we have a mooring in Newport RI. that is our home port. we put Newport on the boat. Newport has no sales tax on boats, nor does it require registration if you are documented. We also have a mooring in Nantucket. If the powers at be see us in Nantucket for 3 months straight they may ask questions, but the fact we have a mooring in Newport also clears us. We also go south to miami in november for the winter so we are in fact not in MA waters as a primary base.

Here is a little article on our now secretary of state John Kerry taking advantage of the situation... a beautiful boat he has btw.

John Kerry Saves $500,000 By Docking 76-Foot Luxury Yacht Out Of State

The bolded part is not correct. If you have a CG documented boat, you do not need to have MA registration. From the state FAQ:
"Q: Am I required to register my boat?

A: State law requires the registration of any boat that is powered by a motor and operated on public waterways in Massachusetts. Registration is required even if the motor is not the primary means of propulsion for that boat. Some examples of boats that require registration include fishing boats with motors, recreational motorboats, canoes or sailboats that use motors (includes electric motors), and personal watercraft such as Jet Skis or wet bikes. Boats exempt from registration requirements include those that do not use motors, and documented vessels (large boats that are issued a marine document and registration through the U.S. Coast Guard). Vessels used solely by a city, county, state, or federal agency will be issued a certificate of registration and number at no charge."

This requirement varies by state. Like you, our boat is kept in RI where registration is required even though CG-documented.

Kerry's situation was political more than legal. He was legally justified in keeping the boat in RI and not paying sales tax. Not the brightest idea from a political perspective.

[Jbingham]

Originally Posted by tartansail

The bolded part is not correct. If you have a CG documented boat, you do not need to have MA registration. From the state FAQ:

"Q: Am I required to register my boat?



A: State law requires the registration of any boat that is powered by a motor and operated on public waterways in Massachusetts. Registration is required even if the motor is not the primary means of propulsion for that boat. Some examples of boats that require registration include fishing boats with motors, recreational motorboats, canoes or sailboats that use motors (includes electric motors), and personal watercraft such as Jet Skis or wet bikes. Boats exempt from registration requirements include those that do not use motors, and documented vessels (large boats that are issued a marine document and registration through the U.S. Coast Guard). Vessels used solely by a city, county, state, or federal agency will be issued a certificate of registration and number at no charge."



This requirement varies by state. Like you, our boat is kept in RI where registration is required even though CG-documented.



Kerry's situation was political more than legal. He was legally justified in keeping the boat in RI and not paying sales tax. Not the brightest idea from a political perspective.

100% agree on the politics. Just pointing out the rationale of a state senator that's worth millions using a RI hailing port. He did it because it's a loop hole that works! And his boat is shiny but I'll tell you this much, seeing it in person for a month last winter docked in Nantucket is was pretty frigging awesome. I guess shiny is ok with me! I just have to put my shine on my boat alone and he uses a captain ;-)

[Jbingham]

Not to mention the sailing in that area is stellar. Lots of awesome spots within reach even on a day sail

[tartansail]

Originally Posted by Jbingham

Not to mention the sailing in that area is stellar. Lots of awesome spots within reach even on a day sail

No disagreement there at all. We live in MA and kept our prior boat there which is why I know the rules about registration. Other than the fact that it is one day further from Maine, we have found no downside to being on Narragansett Bay.

[Jbingham]

Originally Posted by tartansail

No disagreement there at all. We live in MA and kept our prior boat there which is why I know the rules about registration. Other than the fact that it is one day further from Maine, we have found no downside to being on Narragansett Bay.

What's an extra day or a month when you're sailing. Taxes aside here's to fair winds, quiet coves and cold drinks. Spring has finally sprung in New England!!!

[letsgetsailing3]

Originally Posted by Jbingham

comes down to one simple thing. being caught. Here is the deal. if you live in MA. and operate in MA even if you are documented, they also want you to register the vessel in MA. if you register it, then you have to pay taxes or prove that you have paid taxes in the past. end of story.

so for us, we have a mooring in Newport RI. that is our home port. we put Newport on the boat. Newport has no sales tax on boats, nor does it require registration if you are documented. We also have a mooring in Nantucket. If the powers at be see us in Nantucket for 3 months straight they may ask questions, but the fact we have a mooring in Newport also clears us. We also go south to miami in november for the winter so we are in fact not in MA waters as a primary base.

Here is a little article on our now secretary of state John Kerry taking advantage of the situation... a beautiful boat he has btw.

John Kerry Saves $500,000 By Docking 76-Foot Luxury Yacht Out Of State

Well, he tried anyway. When he got outed in the press, he paid his taxes.


Kerry Agrees to Pay Massachusetts Tax on Yacht Docked in Rhode Island | Fox News

[chrisjs]

If she intends to keep the boat in Boston and intends to arrive at exactly 6 months after purchase, and her kids are still in schools in MA, there is no way she will likely avoid MA sales/use tax. The extended period 91-2 years) outside of MA just helps make her intent so obvious. As suggested above, given the situation, she should probably just fess up and pay up!!