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Old 02-02-2009, 09:22   #1
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Buying in Another State - Title, Registration, Taxes

Here's the situation.

Boat is currently on the hard in FL, titled in FL, register in NH, and hailing port on the document is CO (just in case that matters), previous owners...or soon to be reside in CO.

I'm moving it to NJ, registering in NJ, and new hailing port will be in NJ.

  1. Will the title need to be transferred to NJ? If so, how? If not, any benefit to doing it anyway?
  2. Do I have to pay taxes to NJ or to FL?
  3. Previous owner seems to think I'll need a FL cruising permit. Is this true? From what I understand, out of state vessels may remain in FL waters for up to 90 consecutive days, but a permit isn't required?
  4. Will a bill of sale be sufficient to register the ding? It's a zodiac, so it doesn't have a title.
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Old 02-02-2009, 10:06   #2
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All of this depends on the laws in New Jersey.
You can probably get all the info from their DMV web site.

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Old 02-02-2009, 12:19   #3
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Here is the New Jersey boat registration link.
State of New Jersey - Motor Vehicle Commission

They do want the title.

As far as the dinghy goes they want:
A notarized bill of sale
A notarized statement of receipt from the seller

I'm guessing one or the other.
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Old 02-02-2009, 14:44   #4
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For Florida I think it deopends on how long you have owned the boat while there.

In other words, the clock is ticking.

There was a rule that gave a break for vessels that were being worked on. I don't know if that is still true.

I would get the Florida and New Jersey Laws.
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Old 02-02-2009, 17:08   #5
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Hi Grunzster,

State of New Jersey - Motor Vehicle Commission

I think you can choose who you pay sales tax to...but you will need proof that the tax has been paid when you go to register in N.J. Sales tax is is 7% what's Floridas?

I'd call them ( NJ ) about the tax issue...to be sure.....also note that you have 10 days to title this boat.....

The Hailing port only matters if you are documenting or re-documenting this vessel with the Coast Guard..
If you Document the vessel, you still have to Register it each year in NJ and Display a registration sticker....but you don't have to place the registration Numbers on your bow......Documentation and Registration are totally different things...I think the coast guard fee is $85...

You can always register the boat in florida, pay the tax...etc..and when you get to NJ....i think you have 180 days to transfer the registration...
I'm guessing though that insurance will cost you alot more in Fla...so maybe not a good idea?

If I can help in any way..let me know..
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Old 02-02-2009, 17:31   #6
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Actually it's already insured in my name. When I launch, I'll have to apply for an extension, since FL is outside the cruising area of my policy.

From the time the sales process started until it moves it will have been in FL for about 3 months and 2 weeks, maybe 3 weeks. Out of that time, only 6-7 weeks in the water.

I will obviously have to re-document to change the port and name, just wasn't sure if that mattered when it came to the other issues.

You'd REALLY think the lender could just answer these questions for me?
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Old 02-02-2009, 20:02   #7
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First, Home port names mean nothing for state titled boats, they don't mean anything for US documented boats either. You can call it anything you like on a US Documented boat.

You do need to apply for the extension in FL or you will owe use tax. After 90 days they assume you do owe use tax. It's the way taxes work. FL is like a bull dog when it comes to that.

State registered boats don't require a name just numbers. If you put a name on a state registered boat it is because you decided you wanted to and they don't care to know about it. If you don't expect to keep the boat in FL then you need to remove the boat from FL or get the extension.

You will in that case need to deal with NJ for the taxes owed and the title process they require. That process is not important until the boat is actually in NJ. Right now it is in FL. It's not a matter of where you live or where you want to keep the boat later. State registration is about where the boat is.
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Old 02-02-2009, 20:16   #8
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Paul,

Are you saying that you can leave Florida without registering the boat anywhere, cruise north and not register the boat until you get to NJ ?
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Old 02-02-2009, 20:39   #9
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You can title a boat any place you like since you need a proper title that proves you own the boat. A bill of sale is not the only paper you need but it helps to get a real title. If the boat is titled now in FL you have to clear that title before you get a new one. You don't have any tax issues with NJ until you get there with the boat. If some resident goes off and buys a boat they can wait until you get home. If you wanted to register in NJ since you were going there you can start that paperwork upon closing. If something happens it's nice to prove you own the boat.

You do have issues with FL because the boat is there in the state. They give you 90 days to leave with your purchase else prove the boat was being worked on (you get an exclusion). The burden of proof is yours. Just saying it was not in the water is not proof. You owe use tax after 90 days to the state of FL else you have an exclusion and then you must actually prove the boat was not in the state. They will follow you to collect it. They do it all the time.

Taxes are the only thing where you are guilty until you prove yourself innocent. In FL after 90 days you owe the tax unless you get an exclusion. Titles and registrations really are not the problem. They really don't care what you do. You won't owe taxes to anyone until you get someplace long enough. Taxes are not tiles, are not registrations. They all have nothing to do with each other.

Sounds like you have insurance already. This is a good thing. So, title the boat in NJ or with the USCG ASAP. Settle the exclusion with FL right now and make sure you save a fuel receipt or a marina receipt from GA that sets the date you really were gone (this can save you). Then when you get to NJ settle the taxes with NJ or pay them now. They don't mind if you pay early. They sort of need the money now.
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Old 02-02-2009, 22:30   #10
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Grunzster,

Be advised that NJ has a mandatory Safe boating course requirement. The test out option expired in June of 2008 . You may not be able to register a Boat in NJ without producing a boating license. I'm not quite sure if they accept licenses from other states..... if not, you'd have to take an 8 hour course.
I'm not sure if there's an approved NJ online class yet.
A Coast Guard license does not count toward this

I would call the NJ ...DMV if I were you they are not the nightmare they used to be.

.There are actually 2 licenses, one is a tidal water license which is a seperate license from your driver's license. (The one you will need )

The other is a fresh water license that is indicated on a NJ motor vehicle license as an endorsement.

Same class gets both...Don't shoot the messenger........Welcome to NJ.....
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Old 03-02-2009, 06:13   #11
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Quote:
I'm not sure if there's an approved NJ online class yet.
Yes, all the new states that require the license (41 states) all use the same on line course. It's easy - real easy. You go through the on line tutorial and you take the test. You take the test until you pass and you don't pay unless you pass.

This really is about getting a dumb stuff level of knowledge. They want to reduce the death rates. It's over capacity, PFD's, and Alcohol. They throw in some of the most basic USCG regulations and that is about it. No one should be out on the water with at least this level of training. It's not enough to make you great it's just supposed to keep you from killing yourself and others.
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Old 03-02-2009, 06:34   #12
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I think NJ requires you to take the exam at an approved NJ test center in person.
I believe you obtain a printed receipt from taking the online course, which you then present at the test center. Things are changing, as this law is only about 5 years old here.
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Old 03-02-2009, 08:39   #13
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Is it any wonder why the N.J. State Seal has a SCREW in it???? If you owe tax on the boat, and if you have paid in Flordia, N.J. will only collect the difference if there is one, at the time of registration. Where do you plan on keeping the boat?
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Old 03-02-2009, 08:52   #14
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I purchased my inflatable in what they call in NJ an "enterprise zone"...only 3% sales tax... When I went to DMV to register it...they nailed me for the other 3% ( tax was 6% then)

"Sir.. Boats don't qualify for the " enterprise zone" reduction".

We do have good Pizza though..
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Old 03-02-2009, 09:29   #15
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Actually what I originally meant was I need to apply for an extension for my insurance.

The documentation will be transferred within the next few weeks. Also the previous owners are sending the title to the bank within the next few days.
So how exactly do I clear the title in FL, so I can transfer it to NJ?

Also, don't you have to pay the taxes upon registering? Or should I just leave the current registration on, since it's good for a year, and just get the doc and title done? Then register after I get home, so I don't have to pay right way. On the other hand, I'm going to have to do a DMV trip for the ding, so may as well do it all in one trip.

I'm guessing a marina bill for 2 months of dry storage, a repair bill showing that work was being done until 1/23, and bill for launching first week of March would be sufficient for the exclusion? After I get the exclusion, does that mean I have 90 days from launching to leave?

I'm really starting to think that moving it up here even in the middle of winter will be less of a PITA than dealing with the state of FL.
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