Registration in US Virgin Islands

[prroots]

We hope to purchase a used sailboat in the near future. Her home port (where she spends most of her time) will be in the Caribbean. The boat will be US Coast Guard documented to facilitate entry into foreign ports. From time to time we will cruise the East coast of the US. With that in mind, we had planned to register her in some State on the East coast, but now wonder if the USVI would be a viable alternative. Can someone tell us:
1. Does the USVI have a sales/use tax?
2. What kind of annual registration fees are charged?
3. Do the 50 States honor a boat with USVI registration?

Thanks
Pete

[Sailorman375]

I think the only reason to register in any state if you're boat is going to be in that state for a period if time that is longer than allowed. Not sure all states require documented vessel to be registered.

[prroots]

Originally Posted by Sailorman375

I think the only reason to register in any state if you're boat is going to be in that state for a period if time that is longer than allowed. Not sure all states require documented vessel to be registered.

Thanks for the prompt reply. It's been my experience that when cruising the States, it's less hassle if you display a State registration sticker on both the big boat and dinghy that matches your hail port. I've never learned if this is a legal requirement. We do not intend to overstay the limit in any one of any State. In the few States that we are familiar with, USCG documentation does not exempt you from State registration although you do not have to display the normal State registration numbers on the big boat.

[Palarran]

Why would being US Coast Guard documented facilitate clearing in procedures in foreign ports?

The USVI is the US, so there's no difference there. The only difference is that St. Thomas doesn't have duty tax so when you purchase something there, you have to declare it when returning to PR or mainland US.

There are a ton of threads dedicated to this exact topic. If you use the cruisers forum google search, you'll be busy reading for a couple nights.

I can say from my research is that if the value of the boat exceeds $400k, you may want to foreign flag the vessel. The only real complication is that you have to spend two weeks outside of the US every year then re-apply for a cruising permit.

[GordMay]

There are no sales taxes in the USVI; however, because the USVI is outside the U.S. customs zone, foreign (non-U.S.) made goods may also be subject to a customs duty which is separate from the U.S. customs duty. The rate of excise tax on most goods is 4%.
➥ How to Avoid Boat Tax - Legally
➥ USCG National Vessel Documentation Center, Home Page

[prroots]

Originally Posted by Palarran

Why would being US Coast Guard documented facilitate clearing in procedures in foreign ports?

I have heard that when attempting to clear into foreign ports with State registration you may have difficulties. This has not happened to me personally since all previous boats have been USCG documented. This seems to be esp. true in the French ports eg, Martinique and Guadalupe. The reason given is that some States do not include all the required information on their registration documents. Since documentation is inexpensive and easy to obtain, it seems worthwhile. We also believe that the USCG maintains an active database on all documented vessels and if you've had no prior infractions, they will often waive an inspection. This has actually happened to us on several occasions once we radioed across the particulars of our documented vessel. Another advantage is that a perception exists, whether true or false, that a documented boat has good title when buying or selling. These are some of the reasons why we choose to document all our boats.
Pete

[prroots]

I've received answers to most questions concerning the USVI, but I still wish to know if anyone with USVI registration has cruised the US States and if so, what were their experiences. Also, must one have a USVI address to obtain registration there? Thanks
Pete

[billyehh]

No. I had USVI registration while transitioning my boat from from British registry to Canadian. Neither I or my boat was in the USVI at the time and the whole thing was arranged by my broker in Tortola. The address shown was my Toronto home.

As some one else mentioned I thought I might have problems in the French Islands. It does state that you need national registration over a certain size. However during the 2 years that I used it was only questioned 3 times and it was not a problem. Only once was it in a French Island.

[prroots]

Also, can someone tell me what the limit of your stay is in Puerto Rico to avoid sales/use tax there (assuming we had USCG documentation an US State registration). Thanks
Pete

[Palarran]

I don't know about the state vs CG documentation. I was thinking you where going to be primarily outside of the US and where trying to avoid paying sales and import tax. It costs about $8k to foreign flag a vessel and $1000 / yr to maintain it. If the boat is under $300k, pay the taxes and be done with it, IMO. As an FYI, I've cleared into and out of French waters (St. Martin, St. Bart's) about 10 times in the last 10 months and nothing could be easier. Their system is a cake walk and doesn't cost anything.

Good luck with the hunt.