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Old 12-10-2011, 17:50   #16
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Re: California Tax Question on Boat Purchase

If I were you, I would look for a boat in Mexico and leave it there. SanDiego to Mexico isn't very far to travel to go sailing.
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Old 12-10-2011, 17:50   #17
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Re: California Tax Question on Boat Purchase

I may have misspoke on the 90 days out of state. There may be new regs that require a one year absence... best to check. Delivered may boats from SoKal to Ensenada over the years, the place was known as the home of the 91 Day Yacht Club. Oregon might be a good spot to take possession rather than offshore but not sure of tax law there. Don't think there is sales tax on vehicles but should check. Cheers, Capt Phil
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Old 12-10-2011, 18:30   #18
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Re: California Tax Question on Boat Purchase

You are going to pay Property Tax to San Diego County. If San Francisco County sends you a bill all you have to do is show proof you paid to San Diego. You have 365 days to pay the B of E sales tax at San Diego's rate (moored location, not purchased location). Before you pay it read box 5 of your USCG Bill of Sale.
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Old 12-10-2011, 18:37   #19
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Re: California Tax Question on Boat Purchase

Quote:
Originally Posted by svcambria View Post
It depends. From the California Board of Equalization:
"Use tax is generally imposed on the purchaser of tangible personal property that is used, consumed, or stored in this state. Sales of vehicles, vessels, and aircraft by licensed dealers are usually subject to sales tax, for which sales tax reimbursement is collected at the time of purchase. Use tax applies to the cost of vehicles, vessels, and aircraft purchased from non-dealers (for example, private parties) or from outside California for use in this state. Use tax also applies to most leases of tangible personal property. Private party sales or brokered transactions are normally subject to use tax. If the first use of the property occurs in California, use tax may apply even if the purchaser is not a resident of the state. The sales and use tax are "mutually exclusive," which means that either sales tax or use tax applies to a single transaction, but not both."
Yeah yeah, clear as mud, but there it is...
And as mentioned above, it doesn't matter if the boat is documented or not, the very needy state of California will tax you unless you beat feet out of the state for up to a year.

Michael
Where does it say you can escape the tax by leaving the state for a year?
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Old 12-10-2011, 18:49   #20
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Re: California Tax Question on Boat Purchase

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Originally Posted by Doodles View Post
Where does it say you can escape the tax by leaving the state for a year?
Everything you wanted to know - and more:

FAQ - Use Tax Exemptions or Exclusions - Board of Equalization

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Old 12-10-2011, 18:53   #21
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Re: California Tax Question on Boat Purchase

Check Organ as a place for the sale, they have no sales tax and their property taxes may be less than Calif taxes. Down side is you have to keep the boat there for a year.
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Old 12-10-2011, 19:16   #22
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Re: California Tax Question on Boat Purchase

There are new regs that started on 1 October 2008. The test period is now a year not 90 days. You have to buy offshore and then prove that the boat was outside California for more than half of the first year of ownership. Keep the boat in Mexico for a year after purchase and you don't have to prove anything.
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Old 13-10-2011, 11:28   #23
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Re: California Tax Question on Boat Purchase

Sales Tax and State Property Tax and City Property Tax are all different. You pay the sales tax at the rate of where you reside. You have 1 year to pay it off or apply for state payment plan. Property tax is payable every year on a date your county deems to be the beginning of the year. If you're a liveaboard some counties or cities (LA) will charge you taxes just as if it were a dirt foundation. All this info can be found on the CA.gov site.
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Old 13-10-2011, 11:57   #24
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Re: California Tax Question on Boat Purchase

I was exempt from the tax on Imagine. I lived in Ca., and registered her there. I bought her in St. Maarten, and left her there. The DMV told me with the big book of knowledge, and rules in her hand. That if she didn't see Ca. waters for 6 months then I was exempt. She has yet to see Ca., and was registered there for nearly 5 years. She now has a different state title. Go to the DMV, and ask questions.........i2f
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Old 13-10-2011, 13:42   #25
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Re: California Tax Question on Boat Purchase

While it's true you could do an "off-shore" sale a number of years ago and avoid paying sales tax, California State BOE has begun cracking down on this type of sale. California DMV handles only non-documented boats and dare I say they're barely qualified to do even that. Firstly, one needs to understand the difference between sales and use taxes.
Frequently Asked Questions - Personal Property - Board of Equalization
FAQ - Use Tax on Purchases of Vehicles, Vessels, Aircraft - Board of Equalization
http://www.boe.ca.gov/pdf/reg1610.pdf
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Old 18-12-2011, 06:09   #26
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Re: California Tax Question on Boat Purchase

I don't live in Cali, don't want to, but I do have my eye on a Newport in S.D. I am going to test the offshore sale after the first of the year. If the boat is still for sale of course.
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Old 18-12-2011, 09:36   #27
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Re: California Tax Question on Boat Purchase

Gary-
If you indeed want the boat but also need to delay the sale by two weeks, just tell the seller you need to close after January 1st and offer them a non-refundable "deposit" of one dollar less than the sale price, balance to be paid on the actual closing date after January 1st and before whenever.
Yes, it can be that simple.
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Old 18-12-2011, 11:37   #28
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Re: California Tax Question on Boat Purchase

As a friendly suggestion, drop by the office of Donna Jenkins, Marine Documentation Service in San Diego and ask your questions. I found the staff to be friendly, knowledgeable and competent.
I'm just a satisfied customer... they were very helpful in advising how to remove a US vessel from USCG Documentation, registering it in the Cayman Islands and avoiding CA taxes of all kinds. The vessel was lying offshore which complicated the issue but the advice they gave was sound. I trust their advice over a CA government office drone. Capt Phil
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Old 18-12-2011, 11:57   #29
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Re: California Tax Question on Boat Purchase

Live in Louisiana. No sale taxes on boat over ten years old.
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Old 18-12-2011, 13:01   #30
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Re: California Tax Question on Boat Purchase

Boasun, don't you get the lifelong pleasure of paying personal property tax on that boat and other things instead of paying sales tax?
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