Sales / Use Tax Enforcement on East Coast

[motion30]

Apparently in MD. even if your boat is on the hard or on a trailer they want the tax. And yes I do have a log. if I go to court and lose there is the 100% penelty So you are correct I am busted so, I will pay Md

[hellosailor]

Paul, DE sham registration worked as a tax dodge for years, but then the tax men in the northeast states got wise to it, and hungry. Since maybe the 80's, it HAS BEEN A RED FLAG in the northeast. Not to the extent that it used to be since the worst cheats were chased down, but if a tax man walks into a marina and sees one boat from NJ, one from MA, one from RI and one from DE...he's gonna check out the DE boat first, unless that marina happens to be in DE. He may not expect the same instant gratification (G) and he may look for Nevada and Oklahoma first, but only because despite all the online conversations about home porting boats in mountain states, that's REALLY tempting the fates.

Maybe we should go kidnap, ergh, round up, a dozen tax assessors and field agents and interrogate them to get a good poll?

[Rhosyn Mor]

Although I have a non US regisetred boat, and am not an expert on US tax code, I have been in Md for the winter. early last winter in annapolis a DNR boat came round to all the marinas and took photos of all the non- MD vessels, and those MD vessels with out of date stickers. A couple of my friends who work in marinas have said that this last month the DNR has been coming to the marinas with the details of those boats and asking for the dockage agreements and owners contact details. just an FYI

[motion30]

I remember the dnr doing a sweep in the area I boat, upper chesapeake about 10 years ago. I have not hears of any issue until now. It is interesting as it seems they looked at only at the south side of the river. There is a very nice condo marina on the north side of the Bohimia river and I have heard of no tax issue there, maybe that will be the target this year.

[Pblais]

Paul, DE sham registration worked as a tax dodge for years, but then the tax men in the northeast states got wise to it, and hungry.

Registering a boat in a state where it does not stay is a bad move. It actually can get you nailed multiple times. It just so happens DE won't come after you since they don't want any more money. Putting a state label on the back of your boat is not a great tax dodge either. It really makes no difference what you put on the transom as it won't keep you out of trouble.

The USCG Documentation center will download all the boats to any government office that asks for them. They track by the owners name and address not just the hailing port. It's done in all the places that collect personal property tax too even in our small county of 29,000.

Tax collectors know all the tricks better than the people trying to pull them off. VA makes it easier. The cap is $2000 in use tax so long as you fess up and pay it on time. Otherwise it's 5.5% of purchase price with no cap.

[Cheechako]

1) if a boat is dry stored in FL, do you have to register/pay tax before it goes back inthe water?
2) The FL website for registration says you have to be a resident (or maybe you just have to have an address?) So how would you pay the tax/register if you dont have one?
3) and I guess further, based on the post above, if you were able to register in FL, you wouldnt have the Driver's license if the water cop wanted it!
I tired to register my boat in my home state, but it is not located here and they wont do it!

[Pblais]

Registering in FL does not eliminate the need for taxes owed. You can register or not register any place you like and you still owe the tax if the boat is there. Many people that are not FL residents keep the boat in FL - they pay the tax.

You can get an exclusion if the boat is being serviced. It only excludes the time the service requires. Being in or out of the water means nothing. If you own a boat and it's inside the state for more than 90 days you get to prove you left the state or you owe the tax. You don't need to be a resident any place. They will cross borders to come get the money. All states cooperate on catching tax cheaters. Tax collectors are always cooperative.

[Cheechako]

Not trying to avoid the tax, it's actually lower than my home state! On the other hand I'n not a resident, dont have a license or an address in Florida..... now what!
And you cannot register in my home state if the boat is not physically there at the time you register. I tried.

[Cheechako]

I have the application in front of me it requires:
"owner's physical street address in Florida (mandatory)"
also, interestingly there is a section where you can affirm:
THE VESSEL IDENTIFIED WILL NOT BE OPERATED ON THE WATERS OF THIS STATE UNTIL PROPERLY REGISTERED.

[Cheechako]

Or are you saying I can just pay the tax on my documented vessel without registering? Will I get a sticker? or just have to show the tax receipt when stopped?

[hellosailor]

"
Florida recognizes valid registration certificates and numbers issued to visiting boaters for a period of 90 days. An owner who intends to use his vessel in Florida longer than 90 days must register it with a county tax collector. However, he may retain the out-of-state registration number if he plans to return to his home state within a reasonable period of time. "
Official Website Florida Department of Highway Safety and Motor Vehicles

You never know what you'll find if you GO TO THE SOURCE. They also answer phone calls, but folks who answer the phone are sometimes less reliable than the official printed versions.

[Pblais]

Or are you saying I can just pay the tax on my documented vessel without registering?

If you can demonstrate a boat title then the only issue is any state fees and use tax based on location of the boat. For any state this is a one time fee. Most states let you credit fees paid to another state. With 50 states it could be worse. The title is number one since if you can't prove ownership they can assume you stole it. State "registration" is not like cars. With cars "Registration" is always title and maybe more money.

Some states charge a sticker fee. MD is one of them. In VA we don't, but we do have annual personal property tax (worse). All things considered it's less than real estate taxes any other place I have lived. They collect the money one way or the other. While you are arguing how they get you some other way.

[cdennyb]

Pblais;
not to get off-topic (which I don't think it is...) what if the vessel is Delaware reg to a corporation and operated in the Caribbean. Is it exempt from the 50 state fees and taxes you're referring to in this thread? Also being used as a liveaboard.
Just curious.
db

[hellosailor]

db, you have to understand that all taxes and fees are based on "venue". That is, location, and sovereignty over that location.

Every "location" exerts taxing authority over everything and everyone IN that location, with residents, citizens, and transients all being treated differently.

"The Caribbean" is not a place, when you are discussing taxes. Trinidad is a place, Barbados is a place, the US Virgins and the British Virgins are all different places.

And each one of them will be a different venue with different tax ramifications, along with different rules for treating ALIENS who are cruising there. Or trying to cruise there.

[sailingal]

We are just about to buy our first boat, we live in Oregon, no sales tax, but would like to keep the boat in Washington state. According to the title people, we would owe the sales tax, 9.5% even if we don't bring the boat to washington until several years down the road. So if I come from a state that has sales tax, then I won't be further taxed by washington, but since I live in a no sales tax state, even though we have a high income and property taxes, then I still have to pay it? Even 5 yrs. later? And then what if you decide after that to keep it florida, then NY, are you on the hook for sales tax each time you move to a new state? Is there an easy reference for all the various states, could be a nightmare for cruising around.