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sailingunity · 15-10-2016, 17:25

We are in the process of processing our documentation for our boat. Since we'll be cruising outside of the US for a while (at least, not in any one state for any period of time), he advised that we just register it in Delaware and get our federal documentation done.

I have read that federal documentation is what paves the way for world cruising, so is it really required to get state registration? Does it benefit in some way? I hate to pay the yearly fee for something if it's not strictly needed.

crabcake · 15-10-2016, 17:46

Where do you, or where will you reside? Also, where will the boat be kept?

sailingunity · 15-10-2016, 19:05

That's the crux of it, we won't be residing in any one place in the US for a great period of time. Plan to head south, through the Caribbean, then who knows where for what period of time? I wouldn't rule out a return to the US at some point in time, but would cross that bridge when we get to it.

crabcake · 15-10-2016, 19:24

Quote:

Originally Posted by sailingunity

That's the crux of it, we won't be residing in any one place in the US for a great period of time. Plan to head south, through the Caribbean, then who knows where for what period of time? I wouldn't rule out a return to the US at some point in time, but would cross that bridge when we get to it.

Well, there are lots of issues, like are you on Social Security, etc. There are a ton of excellent threads on CF dealing with all the issues you ever wanted to know about for US citizens and long term cruising.

I would question if Delaware is the proper venue for your registration. Florida has some strict tax rules regarding transient boaters that you may want to look at. All the issues are covered in CF. You may also want to contact someone competent to advise you regarding Documentation.

Sometimes Brokers are only interested in the sale, and you get stuck with the results of their advice that may not be to your liking down the road.

Sun and Moon · 15-10-2016, 19:56

Federally documented boats don't need state registration. They do need to pay state taxes if they stay long enough in any state. Rules for each state vary, but I think 60 days is allowed by all. Sounds like you are not planning to stay that long in any state, so it doesn't sound to me like you need to state register. Probably saves you a lot on state sales tax, too.

Sun and Moon · 15-10-2016, 19:58

Oh, but be careful where you say your home port is when you federally document. California will demand state tax if you home port there even if the boat never enters the state. Other states may have equally quirky rules...

**skipmac** · 15-10-2016, 20:26

Quote:

Originally Posted by Sun and Moon

Federally documented boats don't need state registration. They do need to pay state taxes if they stay long enough in any state. Rules for each state vary, but I think 60 days is allowed by all. Sounds like you are not planning to stay that long in any state, so it doesn't sound to me like you need to state register. Probably saves you a lot on state sales tax, too.

I think this answer would benefit from some clarification.

Regarding taxes, depends on what taxes you're referring to.

If property or ad valorem taxes, many states do not have this on boats so never a concern in those states. Also, an ad valorem tax is almost always levied against a boat owned by a person that is officially a resident of that state or in some states a boat that is permanently berthed or registered in that state. I do not personally know of any states that charge ad valorem taxes on transients who are legal residents of another state no matter how long they stay in another state.

If sales taxes, then it depends. A few states do not have sales tax but most do. If you buy a boat and are resident of a sales tax state OR if you buy a boat in most sales tax states and it remains in the state where it was purchased beyond a certain time limit, typically 90 days, then most states will make you pay the state sales (also called sales and use tax) of that state. This is typically +/- 6%. I know of no states that will charge transients sales tax on a boat unless they become a legal resident of that state and have not paid sales tax already in another state. If you pay sales tax on a boat in one state all states I know of will credit you with that tax even if you move to the new state with the boat.

NOTE: California and maybe one or two more are notable exceptions and standard rules and all comments above may not apply.

Island Time O25 · 16-10-2016, 06:08

New Hampshire has no sales tax and Rhode Island I believe has no sales tax on the boats registered there. So if documenting and a port name is a concern as far as the state down the road going after you just because of the port name consider the port name from either of these. Both have a Portsmouth, which IMO is a very salty and well recognized port of call.

sailingunity · 16-10-2016, 06:30

It looks like the the USCG "home port" can be anywhere and doesn't have to be in the state it's registered or resides in (at least that's what I've read in other forum posts). We were planning on picking Magnolia, TX, as that is where we are from. I can't imagine why a foreign government would care if we're registered in a specific state as long as we are federally documented.

In my mind the only case it might help is if we're travelling through another state, at least we can say we are registered in Delaware if any questions are asked, although I know that won't even help if you stay there long enough.

chuckr · 16-10-2016, 06:34

you do not need state registration in foreign countries -- we bought our boat in Ct and moved her to Fla and paid state sales tax on her and we are USCG documented - no Fla numbers on her -

we have sailed to over 35 countries and our USCG has never been questioned

we are Fla residents with a green cove springs address for our mail

hope that helps

SV DestinyAscen · 16-10-2016, 08:09

You likely won't need state registration. State registration is only really needed if your boat primarily resides in a state that requires it. Your personal residency is more or less irreverent to the discussion.

Octopussy · 16-10-2016, 20:04

We were New Hampshire residents for almost 20 years while we were in the military, but then we sold all of our properties in anticipation of going cruising. We then got a PMB at St. Brendan's Isle in Florida, and then went through all of the hoops to establish Florida residency. Because our boat was our domicile, we were required to register it in florida. HOWEVER because we were never required to register it in NH-- because it was a federally registered vessel-- we were required to pay the sales tax on it when we registered it. EVEN THOUGH we have owned the boat for almost 4 years. Because it had never been registered in a state before, FL was required to collect sales tax. UGH!

Anyway, you should check these types of rules and regulations. Also, if you're declaring it as a domicile, you'll need to register it in a state.

Hope it helps,
Octopussy

S/V Octopussy

**skipmac** · 16-10-2016, 20:30

Quote:

Originally Posted by Octopussy

We were New Hampshire residents for almost 20 years while we were in the military, but then we sold all of our properties in anticipation of going cruising. We then got a PMB at St. Brendan's Isle in Florida, and then went through all of the hoops to establish Florida residency. Because our boat was our domicile, we were required to register it in florida. HOWEVER because we were never required to register it in NH-- because it was a federally registered vessel-- we were required to pay the sales tax on it when we registered it. EVEN THOUGH we have owned the boat for almost 4 years. Because it had never been registered in a state before, FL was required to collect sales tax. UGH!

Anyway, you should check these types of rules and regulations. Also, if you're declaring it as a domicile, you'll need to register it in a state.

Hope it helps,
Octopussy

S/V Octopussy

Can you confirm when this happened? I have seen it in writing on state of FL website and confirmed this in a phone call to state offices in Tallahassee that if a boat is purchased and legitimately used in another state for a minimum of six months then it is exempt from paying sales and use tax if moved to Florida.

About one third of the way down on the first page of the document at this link.

http://dor.myflorida.com/Forms_libra...t/gt800005.pdf

One problem, many of the agents at local county registration offices which is where you will deal with officialdom the agents often do not know or understand the regulations. Unfortunately you have to go in informed to make sure all is done correctly.

Also, in the two states I have dealt with personally, FL and RI, they don't care if your boat is a domicile or not. If you bring a boat into the state for more than 90 days, even if it's just a ski boat on a trailer, you are supposed to register the boat in that state.