California tax on transiting boat

[JPA Cate]

Bureaucratic hassles are the bane of cruising life. Duckwheat start dealing with it today from wherever you are, keep copies of everything easy to hand. As others have said, be patient and persistent. You may beat it entirely, if you can document for them that the boat left CA on the xth of Jan. Responding in a timely fashion is of the essence. I once lived in CA, and getting off the tax rolls was a challenge when we left. Documenting that the boat was transient for its total time in CA, and stayed there only x days should do it for you.

Ann

[jamhass]

California is indeed notorious and aggressive in tax collections. Took me over a year to win a case on boat sales tax. San Diego is known to be particularly aggressive, taxing boats that have been out of CA for years. Once on their tax roles it is hard to get off them.

So, fight this as hard as you can. As has been said, keep ALL you records (marinas,entrance/exit papers, fuel receipts, even hotel and restaurant receipts. It all adds up. If they ask for the paperwork, keep copies and mail registered. They "lost" my paperwork twice in my year-long battle. And make sure you tell them to remove you from the rolls or they may "automatically" come back at you again.

Best of luck, and update us on your progress.

[jamhass]

PS:

Just one anecdote on how hard headed they can be:

The boat was in the Chesapeake for a year (thus avoiding CA sales tax). We could not "fully" account for 2 weeks (no receipts for that period) of marina receipts. They tried to disallow my claim, suggesting I could have returned the boat to CA and then back to Virginia during that 2 week period!

[Olddan1943]

Originally Posted by jamhass

PS:

Just one anecdote on how hard headed they can be:

The boat was in the Chesapeake for a year (thus avoiding CA sales tax). We could not "fully" account for 2 weeks (no receipts for that period) of marina receipts. They tried to disallow my claim, suggesting I could have returned the boat to CA and then back to Virginia during that 2 week period!

Did you "suggest" where they could put their suggestion?

[Stu Jackson]

Many good posts here, some albeit too aggressive.


We moved our boat from CA in 2016 from SF to BC. Not only did I go to the tax office before and after I moved, I sent them copies of fuel receipts from our trip with a nice letter explaining why after 18 years with this boat in CA that I moved to Canada.


They sent me the same form letter in year two even after the boat was NOT there.


I sent them yet another friendly letter, copying last years' letter. And a copy of my marina lease in our Vancouver Island marina.


They haven't bothered me since.


Just be nice, and they'll go away.


Eventually.

[AllenRbrts]

I had a similar request on sales tax from the state of California on a boat purchased overseas but with a California mailing address for the registration. They want wanted proof the boat had not been in California. They accepted the MarineTraffic email alerts I receive for each entry and exit of a port. Those emails document the date and place for the boat. Much easier to gather together than marina receipts they originally requested.

[Duckwheat]

I had a good conversation with the marine assessor in San Diego County. I’m forwarding my TIP and letter from the marina I stayed at. She said she’d be able to cancel the bill.

DW

[markpierce]

If docked early January in California, you are liable for the following tax year (July-June) even if the boat is sold before January of the following year.

[Duckwheat]

Originally Posted by markpierce

If docked early January in California, you are liable for the following tax year (July-June) even if the boat is sold before January of the following year.

I’m not moving to California. I’m transiting CA. I don’t owe them a dime.

The California law if you read it is for people permanently mooring their boat in California using the services provided by tax dollars.

Imagine if you drove through a neighboring state and they sent you a property tax on your car. It’s that ridiculous.

DW

[Larry Florida]

Originally Posted by 406Columbia

Fact!

They are an unstable trajectory. Going broke with all the entitlement and services. As a result they must try to squeeze more money from almost everyone.

Yep it's a sad state of affairs in Cali. Any cruiser planing to be in CA would be advised keep good records before and after.

[Pete7]

Folks, I have trimmed the tread of those posts which were drifting way off topic. Lets keep the thread subject to taxes on transiting boats please.

Pete

Moderator

[roverhi]

A boat in any marina, city, county, state, or private during the assessment period will get a bill for the tax. After I sailed away from California before the assessment period still got a bill. Wrote them a letter with proof that I was as no longer in Alameda and wasn’t for the tax period and never heard more from them again.

Have heard of boats being hounded for years after leaving CA. They will keep after you forever if you don’t give them reason not to.

[CaptTom]

This is interesting. It strikes me as odd that a state can tax the property of another state's citizens, just for having that property pass through the state on a certain day.

What about RVs? Trucks? Cruise ships? Cargo ships? Airplanes? Cars? Is there a limit to this authority?

I know Maine is aggressive about collecting tax from boats which are actually in state waters more than XX (60 or 90 forget which) days. They'll also go after residents who document a boat. But never someone just passing through!

[JPA Cate]

We left CA years ago, and investigations at that time led to the knowledge that CA will claim tax for an ex-CA boat until you can show it is registered somewhere else. But visitors can get snared in the tax net if they are in the marina on the day the person from the tax office walks the docks. If said visitor makes friends with the office staff, the office staff can warn them when the tax office rep is due, and the visitor can go out for a sail and not wind up on the list.

If a visitor unknowingly winds up on the list, documenting that they were only in Calif for a period of less than 3 months, plus being registered elsewhere should get the tax office off their backs.

Ann

[Stu Jackson]

Originally Posted by JPA Cate

We left CA years ago, and investigations at that time led to the knowledge that CA will claim tax for an ex-CA boat until you can show it is registered somewhere else. But visitors can get snared in the tax net if they are in the marina on the day the person from the tax office walks the docks. If said visitor makes friends with the office staff, the office staff can warn them when the tax office rep is due, and the visitor can go out for a sail and not wind up on the list.

If a visitor unknowingly winds up on the list, documenting that they were only in Calif for a period of less than 3 months, plus being registered elsewhere should get the tax office off their backs.

Ann

Ladies & Gentlemen,

Ann's right.

Excuse me, but this is pretty simple. Whether or not you agree with the concepts of taxation or the methods in which the individuals may pursue you for payment, ALL YOU CAN AND NEED TO DO IS DOCUMENT your travels. Save your bloody receipts. Copy them. Scan them.

Hardship? Hardly. Ya darned well oughta keep those records anyway.

Sure, an extra stamp and letter.

It's a royal PITA.

This one is small potatoes.

Dan Quayle anyone?