Sales / Use Tax Enforcement on East Coast

[hellosailor]

Jaz-
"No doubt, at least until I get it surveyed and insured they can only do me on % of the price I paid."
Actually that's something else entirely. Any tax levied will be based on the signed bill of sale, which should carry the seller's signature. IF the price shown on that bill of sale is not within a certain percent of the "book" price of the vessel, or does not show a very good reason for the discrepancy, they'll often tax you based on the higher book value unstead.
Having the boat insured/surveyed would make no difference, except as to perhaps affirming the value of the boat, but AFAIK they don't have to accept "later" valuations versus the time of sale.

[Captn_Black]

Hi, thanks, yea, thats why I deleted that post, as from what I read in this thread, each state has different rules on this. I still feel that as I haven't signed or received anything, that I should be able to take the boat out of MD as soon as I get it, and only have to deal with the VA duties and taxes. Got a link for who I should phone in MD please?

[Captn_Black]

Originally Posted by Hud3

Years ago, I bought a boat in Maryland and moved it immediately to Virginia. There is specific paperwork in Maryland for that circumstance, which I filled out and filed with Maryland authorities. They require that you prove that you actually removed the boat from Maryland within a specific period of time, which I have forgotten (maybe 30 or 60 days). "Proof" was paying relevant fees in Virginia and sending Maryland a copy of the receipt.

I think you may have an "issue" to deal with. Maryland can be very aggressive in enforcing boat fees.

So maybe its best just to move it to VA, but keep things above board by contacting MD as soon as I've paid the VA authorities then?

The sales contract for the boat will have the date I signed for it on it, which will be the same day or the day before I take her south.

[donradcliffe]

Read http://www.cruisersforum.com/forums/...s-26999-2.html, about reregistration, cruising permits and permits to proceed. It mentions exemptions from local taxes. However, the rules are as confusing as they are in Europe, and you may get a different story from each official you encounter. For example, what are you going to do about CE certification when you get the boat home??

More importantly, two months from now is the end of September, and are you really going to cross the Atlantic in a $2000 boat in the middle of hurricane season??

You may be able to export things from the UK VAT exempt, or get someone in the US to do it for you, but why bother--boat stuff in the US is much cheaper than in the UK.

[Captn_Black]

It'll be almost the end of hurricane season before I cross, mid-end of October, and she's already crossed the pacific so I don't see why not once I have storms'l, drogues, EPIRB, etc etc. I've researched CE standards, and I'm pretty sure she'll be up to scratch by the time I leave. I've had to check all the stuff I intend to buy in the USA and some stuff I'm going to need to import, some from UK, and some from China.
She's a $12000 boat with the work I have planned.

[Captn_Black]

Thanks for the link, and the concern, but I have been researching this for awhile now, and have handled heavy seas in the Indian Ocean, although that was in a 35' yacht. And I am very physically and mentally fit and shall have 2 crew, although one is my GF who has no experience.
And I'm not on a tight schedual, I shall be watching low pressure systems and will only set out with a good enough window to make the azores at least.

[hellosailor]

Jaz-
Start with Boating in Maryland: Boat Registration and if they don't answer your questions, they'll know who to put you in contact with.

Something to beware, is that in the US "telephone advice" you get from a bureaucrat is not legally binding. Note the person's name, position, and diplomatically ask them for a citation of the regulation or statute, and if there is a way you can either confirm that online or get it sent to you in writing. You are still responsible for meeting the law--as written--regardless of what they've told you on the phone.

[Captn_Black]

Good point, cheers.
I'll e-mail them.
Although if all these expenses add up anymore(I only have a relatively small monthly income and most of my savings are already earmarked for parts), I may have to stay in VA 3 months. Its 90 days in VA till you have to pay isn't it?

[Pblais]

Its 90 days in VA till you have to pay isn't it?

Yes it is. VA is not as strict as MD. MD actually comes looking for you and others that might not be properly registered. VA they can cite you if they catch you and would if they did. They don't come looking as efficiently as in MD. In VA the Tax would 5.5% on the purchase price. They can do as in MD and feel you did not pay a price that reflects the true value. They don't do that often here. For all the hassle paying the tax is not such a huge burden and means it's something that won't come at you as you stay here preparing for you trip. getting all your paperwork ready for when you get all the way back should be enough to keep you busy.

I suggest you follow the link donradcliffe posted above as it has other issues you need to deal with. It does not have to be a huge thing but could avoid problems. It's not expensive and is easy. You take the easy ones.

[Captn_Black]

Cheers, I had expected to pay a similar price to what you pay in Europe, so 5% is a pleasant surprise.

[VERTIGO]

COMMON SENSE NOT EVASION
I have seen this Q posted a couple of times but really never seems to get a straight answer. Some seem to think it is a question of tax evasion. The last 2 houses I bought I would ask what taxes are, it is one of the big listing details as well, ... I would specifically look for areas that have a lower tax, I would not buy in a high tax county. I do not see the difference; I do not consider this to be "TAX EVASION"

I find myself in the same boat as I am sure many are. I have the opportunity to move to a different State and do not see why I would not move to a State that best suits my needs. I currently maintain a house in Savannah, GA but will not even think about taking this State up as a residency when I become a Liveaboard considering they do not even allow Liveaboards. They will not get a nickel from me.

I would think TAX Evasion would be that you try to get out of EVERYTHING altogether. To choose a State that charges the least amount seems to be common sense, I know many people that move because of taxes, City County or whatever. I do not feel any sort of loyalty to any State just because they want my Taxes, Scew-em!!

I really do not see why it is so taboo to say you want to pay the Government as little as possible, seems to be a lot of Multi Million Dollar Companies that move across the border to pay as little as possible. So not just to another State but COUNTRY!!!

So point blank, what is the best/CHEAPEST State to become a liveaboard in??? I will become a law abiding taxpaying resident.

[Captn_Black]

A good point well made Vertigo, more than once people have assumed that I was planning on illegal activities when I'm just trying to find the cheapest opitions for my budget. And I'm certainly not going to risk losing everything for a few bucks.
Rhode Island sounds like it may suit your needs from what I read here, but really, there are many better qualified to answer that for you here.

[VERTIGO]

It is really hard to sift through all the tax crap, VA looks good as far as property tax goes. But from what I see they want 2% sales tax and not sure if they hit you up for anything else. I have looked through allot of the tax post and can’t find anywhere a True, statistical answer. Like a bottom line answer, this State charges the least, all things considered. If I ever dig it up throuhg research I will post it. I am going to put a call into a couple brokers to see what answers I get.

[hasuehounds]

I want to change residences from nc, to fla.. as were getting taxed here for income tax.
I found out how to get residency by changing drivers license. But now i read about USE tax on my boat.. My boat is USCG registered and I only plan to stay in fla on my way out cruising, my residency is only for tax purposes.. anyone know how i deal with not paying on the boat the use tax and if there are any exemptions????
K

[hellosailor]

Check with the Florida DMV and tax authorities, they have all the answers on their web sites.

"anyone know how i deal with not paying on the boat the use tax " Well, yeah, you buy the boat after you've become a resident of a state that has no use tax requirements.

Your USCG documentation is not USCG registration. Registration is always a state matter. Pretty much every state has a way to get the same amount of tax from you, whether it is income, property, use, sales, or otherwise.

By the way, if you establish a residence and get a Florida driver's license? You'll probably be called for jury duty, and have to return to serve, possibly once a year.

"Who can be excused from jury duty?
Even though you are eligible to be selected for jury duty, you may be disqualified or exempted from jury service. Section 40.013 of the Florida Statutes has a list of reasons that disqualify you from jury duty and also has a list of the acceptable reasons for you to be excused. This section of the Statute is printed for you on the Juror Excusal/Postponement Form that you receive with your Summons. The only mandatory excusals are on this Excusal Form. Otherwise, you must serve on jury duty. The form says that you may be disqualified or exempt from Jury Duty for the following reasons:
You will be disqualified:
If you are a convicted felon;
If you are presently under prosecution for a crime;
If you are not a resident of Broward County;
If you are not a citizen of the United States.
You may be exempt from jury service:
If you are over 70 years old and wish to be temporarily excused;
If you are over 70 years old and wish to be permanently excused;
If you are a parent who is not employed full time with custody of a child under 6 years old;
If you are an expectant mother;
If you are a full-time law enforcement officer;
You may also be exempt from jury service for the following reasons, but to be exempt you must provide extra documentation:
If you are physically unable to serve and submit a doctor’s note stating why;
If you served on Jury Duty in the past 12 months and submit Proof of Attendance Form
You CANNOT be excused for business reasons or for lack of transportation. These hardships are NOT grounds for excusal!! "

Now, if you don't mind getting convicted of a felony, pick a good one, and that gets you a permanent exemption from the jury duty. That kind of "gotcha" also applies to many states, residency is not something to shop around for lightly.