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Old 22-05-2012, 08:26   #16
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Re: MEXICO TO FLORIDA VIA TUSCON OR PANAMA

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Originally Posted by sailpower View Post
Susanna, are you sure about this bit? I don't think the Feds get involved with State tax issues.
Yes the USCG notifies your local Tax Assessor of any transfer of Title on US Doumented Boats... They determine the Tax Collectors Office based on the owner information on the Documnetation.

In California, purchasing a used documented vessel, takes about 90-120 days to catch up with you. The time depends on how backed up the USCG Center is and how long it takes you Tax Assessor to get hteir paperwork out.

Then the Tax Assessor Office usually gives a 30-45 day payment demand.

Sales tax on new boats in California is paid at the the time of purchase, with the Yacht Broker.

In California, the Sales Tax varies by County as much as 1.5-2%, so purchasing a boat in one of the Counties with lower taxes will sometimes save a bundle, especially on a purchase of a new vessel.

The only way out of California State Sales Tax is take an "Off Shore Delivery" and remove the vessel from California within 90 days.
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Old 22-05-2012, 09:52   #17
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Re: MEXICO TO FLORIDA VIA TUSCON OR PANAMA

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Originally Posted by jeremiason View Post
Yes the USCG notifies your local Tax Assessor of any transfer of Title on US Doumented Boats... They determine the Tax Collectors Office based on the owner information on the Documnetation.

In California, purchasing a used documented vessel, takes about 90-120 days to catch up with you. The time depends on how backed up the USCG Center is and how long it takes you Tax Assessor to get hteir paperwork out.

Then the Tax Assessor Office usually gives a 30-45 day payment demand.

Sales tax on new boats in California is paid at the the time of purchase, with the Yacht Broker.

In California, the Sales Tax varies by County as much as 1.5-2%, so purchasing a boat in one of the Counties with lower taxes will sometimes save a bundle, especially on a purchase of a new vessel.

The only way out of California State Sales Tax is take an "Off Shore Delivery" and remove the vessel from California within 90 days.
It is my understanding that the opposite happens. The State of California asks the USCG for the info. Also I think that the offshore rule applies to boats that stay out of CA for 90 days. It is quite complex and the Franchise Tax Board is very aggressive about getting their money so be careful.

As far as shipping the boat I looked into shipping from San Diego to the East Coast and then sailing across the Atlantic. The cost was going to run about $15k. Sailing was expensive in time as well as money. I tracked a boat similar to mine and it took them over 2 months. This was a fast cruise or slow delivery pace with no major storms or breakdowns.
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Old 22-05-2012, 10:18   #18
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Re: MEXICO TO FLORIDA VIA TUSCON OR PANAMA

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It is my understanding that the opposite happens. The State of California asks the USCG for the info. Also I think that the offshore rule applies to boats that stay out of CA for 90 days. It is quite complex and the Franchise Tax Board is very aggressive about getting their money so be careful.
Charlie,

Whether they ask for it or the USCG give it to them, so do the other 49 states of the union... Everyone wants their tax money.

As for the "Off Shore Delivery", About 7-8 years ago California changed their tax laws.

Before the law changed, many California owners purchased their boats and moved them to Encinada (Baja) Mexico for 90 Days, affectionately called the “90 Day Yacht Club”. This relieved the owners of their California Sales Tax obligation.

Under the new laws, you must now remove your vessel from California within 90 days of purchase and stay out of the state for at least ONE YEAR, to be relieved of the Sale Tax.

This effectively eliminated the advantages of a California Citizen of getting state tax relief by moving their vessels out of the state for short periods.

When I purchased my new boat in 2006 in San Francicso, I weighted the options of an "Off-Shore" delivery versus paying the State Sales Tax.

I estimated costs on berthing fees, vessel transit to/from Mexico, flying to Mexico every couple of weeks and renting an apartment while my "New House" was in Mexico.

Comparing the two, I would have saved about $1500-$2000 in Tax Payments, which to me, was not worth giving up use of the boat for a year.

I mentioned flying to the boat, because that is one of the requirements to seek tax relief, proving you are using the vessel in Mexico to the California Tax Board. As I recall, they wanted to see you on the vessel once per month at a minimum. Used airline tickets, passport stamps and berth receipts are used as proof to the Tax Board.
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Old 22-05-2012, 12:03   #19
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Re: MEXICO TO FLORIDA VIA TUSCON OR PANAMA

We bought a boat in Cali in the past and documented it out of Oregon at our address there ! Removed the boat from Cali within 3 weeks and had no state sales tax in Cali. Have things changed there ?? We had the boat for 3 yrs and never had any sales taxes notices from Cali ! Just wondering as we are looking in Cali soon for our new to us boat ??
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Old 22-05-2012, 19:06   #20
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Re: MEXICO TO FLORIDA VIA TUSCON OR PANAMA

@Jeremiason:

I bought my boat out of state during the middle of the change in the boating tax law. I didn't have any plans of keeping the boat in California. At that time you had to keep the boat out of the State for a year. I ended up doing that. Then the laws changed again. Since then I haven't kept up so I don't know where the law is at now. All I am sure about is that the FTB will try and get their money even if they are not legally entitled to the tax.
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