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Old 16-01-2011, 12:40   #1
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Where Is it Best to Document a Vessel ?

Wow! I canít believe itís been 20+ years since we last purchased a boat. A lot has changed.
We are now in the market for a boat to blue water cruise. I am a citizen of the UK, my wife is US. Since we are cash buyers and will have no boat mortgage, we can document in BVI or USA. I am having trouble finding out the advantages/disadvantages of each. Chances are we will buy the boat in the USA and keep it here for about 2 years before untying for good.
Any thoughts on how we can work the systems to our advantage?
Thanks in advance for any advise.
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Old 16-01-2011, 13:54   #2
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G'day, mate. We are still flying U.S. flag with USCG documentation in place AND have imported the boat to New Zealand. This allows us to sail in and out of New Zealand without going through their Cat 1 Inspection process, plus we (and any future owner) can leave our yacht here as long as long as we wish. Also, there are no sales, VAT, etc taxes to be paid here for any future owner. All the best. Cheers.
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Old 16-01-2011, 14:15   #3
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Mcerdos,

Documenting your boat in the US is very easy and you can do it yourself.

See attached forms.

1) The reason most sailors document a vessel is because it allows you to only have a small state reg. sticker and not all those numbers on the bow.

2) It also allows for easier selling when the time comes. Banks recognize documentation as a legal document making for a faster and easier boat sales transaction.

http://www.uscg.mil/hq/cg5/nvdc/

Mark
Attached Files
File Type: doc CG1258.doc (82.5 KB, 470 views)
File Type: doc Initial_Vessel_Doc_instrin.doc (59.0 KB, 172 views)
File Type: doc Documenting_Instructions.doc (31.5 KB, 600 views)
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Old 16-01-2011, 15:16   #4
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Thanks for the forms. Do you know of any reason to select one port of call over another.
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Old 16-01-2011, 15:20   #5
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Thanks for the forms. Do you know of any reason to select one port of call over another.
No reason or any reason. However, the question of state sales and use taxes might be a factor. The USVI or Rhode Island have no sales tax, for example. There may be others.
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Old 16-01-2011, 15:48   #6
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It used to be that if your vessel was documented US, the US govt it could be take possession of it in time of war.....it doesn't matter whether or not it is documented any more, doesn't even have to be war, or US flagged for that matter.

portland imc - 2006.01.26 - FEMA Concentration Camps
EXECUTIVE ORDER 10998
allows the government to seize all means of transportation, including personal cars, trucks or vehicles of any kind and total control over all highways, seaports, and waterways.
EXECUTIVE ORDER 10990
allows the government to take over all modes of transportation and control of highways and seaports.

EXECUTIVE ORDER 11921
allows the Federal Emergency Preparedness Agency to develop plans to establish control over the mechanisms of production and distribution, of energy sources, wages, salaries, credit and the flow of money in U.S. financial institution in any undefined national emergency. It also provides that when a state of emergency is declared by the President, Congress cannot review the action for six months. The Federal Emergency Management Agency has broad powers in every aspect of the nation. General Frank Salzedo, chief of FEMA's Civil Security Division stated in a 1983 conference that he saw FEMA's role as a "new frontier in the protection of individual and governmental leaders from assassination, and of civil and military installations from sabotage and/or attack, as well as prevention of dissident groups from gaining access to U.S. opinion, or a global audience in times of crisis." FEMA's powers were consolidated by President Carter to incorporate the...

International Emergency Economic Powers Act
enables the President to seize the property of a foreign country or national. These powers were transferred to FEMA in a sweeping consolidation in 1979

So regardless of where your vessel is documented the US govt could still take possession of it......scary isn't it
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Old 16-01-2011, 15:53   #7
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Thanks for the forms. Do you know of any reason to select one port of call over another.
The USCG does not care where you call your home port. It does not have to be where you live or keep your boat.

USCG only wants a valid mail address so they can send you your yearly Documentation renewal form.

Mark
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Old 17-01-2011, 04:32   #8
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Documenting the boat in the US requires a modest one-time processing fee. Annual renewals are free. Registering in the BVI requires a boat survey, initial fee, and annual maintenance fees.



p.s. Don't let Wolfenzee scare you.
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Old 17-01-2011, 15:41   #9
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When are the taxes due

If I buy a boat in the USA and documented it here then, cruised the east coast. How long can one stay in any given place before getting his with tax.

For example, If I purchase a used boat in a state and pay a 3% sales tax, then I move the boat to another state for a year or so, and that has a 6% sales tax, do I have to pay the additional 3% to the new state???
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Old 17-01-2011, 15:45   #10
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Originally Posted by mcerdos View Post
If I buy a boat in the USA and documented it here then, cruised the east coast. How long can one stay in any given place before getting his with tax.

For example, If I purchase a used boat in a state and pay a 3% sales tax, then I move the boat to another state for a year or so, and that has a 6% sales tax, do I have to pay the additional 3% to the new state???
In short you have to pay the extra 3%
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Old 17-01-2011, 16:09   #11
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Quote:
Originally Posted by mcerdos View Post
If I buy a boat in the USA and documented it here then, cruised the east coast. How long can one stay in any given place before getting his with tax.

For example, If I purchase a used boat in a state and pay a 3% sales tax, then I move the boat to another state for a year or so, and that has a 6% sales tax, do I have to pay the additional 3% to the new state???
Actually in New Jersey you would(one of those wierd NJ laws). Regardless when you register a vehicle (be it car or boat) in a different state you have to pay sales tax all over again. As far as how long can you get away with having your boat registered in another state, it is usually one year but that is sort of a gray area, if you still live in the state where the boat was originally registered you might be able to get away with it for another year or so. The different colored sticker will make the authorizes that walk the docks look a bit closer and make a note if it appears as though you really are not just visiting.
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Old 17-01-2011, 16:23   #12
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in Florida you have 90 days, tax is 6.5% s0 you would have to pay the difference if you stayed over 90 days
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Old 17-01-2011, 16:32   #13
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If youíre just cruising through states for a few months theirs no worries.

If you plan on staying in one state for over 3 months you will want to check there laws. Some states have a "use" tax. When you stay to long and a state registry guy comes down the docks to check, they also get a list of boats and owners from the marina which also shows your season contract dates. You may say your only passing through, but your marina contract says your signed up for 6 months.

All this info is online for every state, so its best to do your homework.

Mark
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Old 17-01-2011, 16:35   #14
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It depends upon the state in which you purchase and in which you keep your boat. I bought my boat in Maryland and kept it in MD and registered it in MD for 7 years before I moved from Virginia to MD. I paid the MD sales tax the year of purchase only. I was advised not to register it in VA because I would then have to pay personal property tax EACH YEAR on the boat, and MD doesn't have a personal property tax. The MD Dept Natural Resources mailed the registration to me in Virginia without issue for those 7 years.
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Old 17-01-2011, 16:54   #15
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Wow! What a mess!

My understanding is, if I document the boat in BVI (bc I'm a UK citizen) then I can be in the USA tax free for up to a year on a crusing permit.

I wonder how the state would handle that since I live in the USA.

You'd think this would be standardized.

No wonder rich people have lawyers!
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