Cruisers Forum
 


Join CruisersForum Today

Reply
 
Thread Tools Rate Thread Display Modes
Old 17-08-2015, 18:24   #1
Registered User
 
Brown7477's Avatar

Join Date: Aug 2015
Location: Wisconsin
Boat: Beneteau First 35
Posts: 33
USCG Documentation and Which State to use

I have been searching for an answer to this question.
I am going to document a vessel but need to choose a home port to use.
I hate to admit this, but I really can not afford the taxes so I am looking for someplace that does not or will not charge taxes on the State Side registration. I believe the previous Home Port was Wilmington Delaware.
I'm basically trying to keep my costs at a minimum so I can get this boat ready to sail.
I bought the boat through a broker, and got only a USCG Bill of Sale.
The previous owner passed away and I bought it from his son, and he hadn't received the permanent Documentation, however there is no sales price on it.
I know there are some other posts on this subject but they are a few years old and really haven't been addressed in some time.
__________________

__________________
Brown7477 is offline   Reply With Quote
Old 17-08-2015, 18:31   #2
Registered User

Join Date: Oct 2007
Location: Winters cruising; summers Chesapeake Bay
Boat: Catana 471
Posts: 1,239
Re: USCG Documentation and Which State to use

As for state taxes, Delaware is a good choice to register. But this is wholly separate from the home port. The home port basically has nothing to do with how you might be taxed. Think of home port as just an extension of the vessel's name. States taxes depend on where the vessel is physically located, when, and for how long.

Dave
__________________

__________________
2Hulls is offline   Reply With Quote
Old 17-08-2015, 18:41   #3
Registered User
 
sanibel sailor's Avatar

Join Date: Feb 2013
Location: Sanibel FL
Boat: 1979 Bristol 35.5 CB
Posts: 977
Re: USCG Documentation and Which State to use

allowable home ports are either where the vessel is physically located (eg home ported) or the location of the owner of record. The Delaware thing is typically done thru an LLC based in DE. same with Cayman Islands, etc. There is no sales tax in DE either. I did it and "got away with it" but found that the LLC expense added on top of the worry about legitimacy was not worth it. The best reason is for asset protection. The local authorities are also on the lookout for out of state registered boats that are in their jurisdiction for a long duration in which case they can impose fees and I presume fines. Here in FL, 90 days is the limit without going to another state at least overnight. But my boat is over 25 years old so is considered an antique and annual registration is a painless $6.
__________________
John Churchill Sanibel FL
NURDLE, 1979 Bristol 35.5 CB
sanibel sailor is offline   Reply With Quote
Old 17-08-2015, 19:07   #4
Registered User

Join Date: Aug 2012
Posts: 337
Re: USCG Documentation and Which State to use

NOT CALIFORNIA !!!!!!!!!!!


Sent from my iPad using Cruisers Sailing Forum
__________________
brantleychuck is offline   Reply With Quote
Old 17-08-2015, 19:11   #5
Registered User
 
markpierce's Avatar

Join Date: Aug 2010
Location: Central California
Boat: M/V Carquinez Coot
Posts: 3,410
Re: USCG Documentation and Which State to use

You can letter your boat for any US location, but taxes will be based where the boat is berthed.
__________________
Kar-KEEN-ez Koot
markpierce is online now   Reply With Quote
Old 17-08-2015, 19:25   #6
Registered User

Join Date: Dec 2010
Location: W Carib
Boat: Wildcat 35, Hobie 33
Posts: 7,908
Re: USCG Documentation and Which State to use

Quote:
Originally Posted by markpierce View Post
You can letter your boat for any US location, but taxes will be based where the boat is berthed.
Ding! Ding! Ding!

A Federally registered recreational vessel can display any hailing port you choose, doesn't matter, but...the State in which the boat physically resides will still want their take.

If it doesn't reside in a State then no problem. Many cruisers display hailing ports from their shore base. Mine still shows "Bradenton, FL" though the boat hasn't physically been there in over a decade.
__________________
belizesailor is online now   Reply With Quote
Old 17-08-2015, 19:31   #7
Registered User

Join Date: Dec 2010
Location: W Carib
Boat: Wildcat 35, Hobie 33
Posts: 7,908
Re: USCG Documentation and Which State to use

Quote:
Originally Posted by Brown7477 View Post
I have been searching for an answer to this question.
I am going to document a vessel but need to choose a home port to use.
I hate to admit this, but I really can not afford the taxes so I am looking for someplace that does not or will not charge taxes on the State Side registration. I believe the previous Home Port was Wilmington Delaware.
I'm basically trying to keep my costs at a minimum so I can get this boat ready to sail.
I bought the boat through a broker, and got only a USCG Bill of Sale.
The previous owner passed away and I bought it from his son, and he hadn't received the permanent Documentation, however there is no sales price on it.
I know there are some other posts on this subject but they are a few years old and really haven't been addressed in some time.
Just to clarify, it sounds like you are concerned about State sales tax...right?

If so, this gets very State specific and thus depends heavily on where the transaction took place, where the boat is physically located, and when (how many days ago for example)...where it is registered or which hailing port you display may be largely irrelevant.


What is relavant is what State was the boat in when the transaction was completed?
__________________
belizesailor is online now   Reply With Quote
Old 17-08-2015, 19:57   #8
Senior Cruiser
 
skipmac's Avatar

Cruisers Forum Supporter

Join Date: Oct 2007
Location: 29° 49.16’ N 82° 25.82’ W
Boat: Pearson 422
Posts: 12,368
Re: USCG Documentation and Which State to use

Hi Brown7477,

If you are trying to avoid state sales tax on the purchase then that can involve several issues.

The biggest issue, in what state is/was the boat when you purchased it? Many states, Florida for example, will require you to pay the sales and use tax on any boat sold in the state of Florida unless you are not a legal resident of Florida and you remove the boat from the state by the deadline, 90 days if I recall. This is the same in many east coast states.

After this you will have to address the laws in the state where you are a legal resident.
__________________
The water is always bluer on the other side of the ocean.
skipmac is online now   Reply With Quote
Old 17-08-2015, 19:58   #9
Registered User
 
Brown7477's Avatar

Join Date: Aug 2015
Location: Wisconsin
Boat: Beneteau First 35
Posts: 33
Re: USCG Documentation and Which State to use

Quote:
Originally Posted by belizesailor View Post
Just to clarify, it sounds like you are concerned about State sales tax...right?
Correct

Quote:
Originally Posted by belizesailor View Post
What is relavant is what State was the boat in when the transaction was completed?
Sales tax is paid at the time of registration, so sales location would be irrelevant if you reside or register it in another State.
__________________
Brown7477 is offline   Reply With Quote
Old 17-08-2015, 20:04   #10
Registered User
 
Brown7477's Avatar

Join Date: Aug 2015
Location: Wisconsin
Boat: Beneteau First 35
Posts: 33
Re: USCG Documentation and Which State to use

Quote:
Originally Posted by skipmac View Post
Hi Brown7477,

If you are trying to avoid state sales tax on the purchase then that can involve several issues.

The biggest issue, in what state is/was the boat when you purchased it? Many states, Florida for example, will require you to pay the sales and use tax on any boat sold in the state of Florida unless you are not a legal resident of Florida and you remove the boat from the state by the deadline, 90 days if I recall. This is the same in many east coast states.

After this you will have to address the laws in the state where you are a legal resident.
I am actually a resident of Wisconsin.
I plan to head south this fall with a few stops and visits in Alabama, and Florida, then around the Caribbean over the winter.then maybe back around the East Coast and across the Great Lakes next spring or sometime later. Obvious travel plans can change with the wind, so I have no concrete travel itinerary as of yet. The boat I purchased turned into a bit of project and has cost more than I had anticipated. but don't they always? lol
__________________
Brown7477 is offline   Reply With Quote
Old 17-08-2015, 20:20   #11
Registered User
 
Dsanduril's Avatar

Join Date: Aug 2011
Location: South Pacific
Boat: Outremer 50S
Posts: 1,443
Re: USCG Documentation and Which State to use

Quote:
Originally Posted by Brown7477 View Post
Sales tax is paid at the time of registration, so sales location would be irrelevant if you reside or register it in another State.
Hate to say it, but sales tax in just about every US jurisdiction becomes due and payable at the time of the transaction. The fact that you end up paying it at the time of registration has no bearing on when it became due.

Many states have a grace period, where if you buy the boat and then remove the boat from that state they will waive the tax. In Florida that is 90 days (and Florida is pretty tax friendly to boats in general). In Wisconsin it is 60 days. If you took possession in Wisconsin and have had possession in Wisconsin for more than 60 days then you owe sales tax already. Doesn't matter if you have it registered or not.

So, the timeline and locations of the boat are critical to evaluating sales tax.
__________________
Dsanduril is offline   Reply With Quote
Old 17-08-2015, 20:30   #12
Registered User
 
Jman's Avatar

Join Date: Sep 2012
Location: Northeast, USA
Boat: Luders 36
Posts: 230
USCG Documentation and Which State to use

So there is sales (use) tax, one time, or perhaps when you relocate to another state. More or less honorary, at least here in Massachusetts, since there is no policing force for it. Since it is documented, there is no state registration.

Then there is excise tax, which I believe in most states is so negligible as to be irrelevant. We pay Hull MA $5 a foot per year. They get you because if you want a mooring, you have to pay it, if it is a trailer boat, not sure how they would ever know.


Sent from my iPhone using Cruisers Sailing Forum
__________________
Jman is offline   Reply With Quote
Old 17-08-2015, 20:42   #13
Registered User
 
Brown7477's Avatar

Join Date: Aug 2015
Location: Wisconsin
Boat: Beneteau First 35
Posts: 33
Re: USCG Documentation and Which State to use

Mine is a 35' Sailboat. It's only been 3 weeks since purchase.
Isn't kind of strange that a state can charge sales tax for something every time it is bought and sold?
__________________
Brown7477 is offline   Reply With Quote
Old 17-08-2015, 20:51   #14
Registered User

Join Date: Oct 2014
Boat: Shopping
Posts: 426
Re: USCG Documentation and Which State to use

You can document the boat with any recognized municipality for a home port. You could pick Casper, WY, if you want. But . . .

Many states now watch private plane and boat purchases, to get their sales (use) tax. So if you document the boat with a California home port, you might get a bill from California for sales tax. You then have to prove the boat hasn't been in California.
__________________
Cottontop is offline   Reply With Quote
Old 17-08-2015, 20:51   #15
Registered User
 
cburger's Avatar

Join Date: May 2006
Location: Nyack, NY
Boat: Westsail 32
Posts: 1,546
Images: 1
Re: USCG Documentation and Which State to use

Quote:
Originally Posted by Jman View Post
So there is sales (use) tax, one time, or perhaps when you relocate to another state. More or less honorary, at least here in Massachusetts, since there is no policing force for it. Since it is documented, there is no state registration.

Then there is excise tax, which I believe in most states is so negligible as to be irrelevant. We pay Hull MA $5 a foot per year. They get you because if you want a mooring, you have to pay it, if it is a trailer boat, not sure how they would ever know.


Sent from my iPhone using Cruisers Sailing Forum
In NY documented vessels still have to be registered
although they do not display registration numbers and have to pay sales tax regardless if a new or used boat. State Department of Taxation has a department that just deals with boats, even has had guys out walking our docks looking for revenue, ask me how I know my tax was not irrevelant but substantial.
__________________

__________________
"All men are created equal, some are just more equal than others"
cburger is offline   Reply With Quote
Reply

Tags
documentation, men

Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Bahamas with neither USCG nor State documentation brownoarsman Rules of the Road, Regulations & Red Tape 34 23-02-2015 20:52
USCG Documentation/ State Registration alpeckenpa Rules of the Road, Regulations & Red Tape 8 08-11-2012 21:47
Foreign Citizenship and USCG Vessel Documentation tardog Rules of the Road, Regulations & Red Tape 15 31-12-2010 09:48
State Registration to USCG Documentation…? dcstrng General Sailing Forum 2 07-07-2008 10:15
State title or USCG documentation ? saint Rules of the Road, Regulations & Red Tape 13 23-02-2008 19:08



Copyright 2002- Social Knowledge, LLC All Rights Reserved.

All times are GMT -7. The time now is 19:32.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.