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Old 10-09-2011, 07:07   #1
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Purchasing in Rhode Island?

We are looking to buy a boat, and see one we like in RI. The broker is suggesting that purchasing there, and keeping it in RI, will avoid paying sales tax. I live in NY and this would save 8+%. we do not live near the water, and will keep the boat elsewhere anyway, so RI is fine. does anyone know if this is true?

thanks
mk
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Old 10-09-2011, 07:09   #2
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Re: Purchasing in Rhode Island?

Yes. I bought a boat in 2009 in NY but immediately moved it to RI and registered there. No sales tax.
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Old 10-09-2011, 07:13   #3
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Re: Purchasing in Rhode Island?

Absolutely it is true. The boat is taxed where it resides and/or is registered. RI has no sales tax on boats. A couple of caveats though. RI has a very high annual registration fee you will have to pay, and they also charge you to have your head inspected and then you get to have a giant ugly sticker plastered on the stern of your boat. It is also expensive and sometimes difficult to obtain dockage or a mooring in RI. New York is particularly aggressive about trying to tax you on the boat, so don't be surprised if they claim you owe the tax, particularly if you document the boat with a NY hailing port. Be prepared with paperwork to demonstrate when and where you purchased the boat, where it is docked or moored, and have all the receipts to prove it. If you are a NY resident theoretically you can't ever bring your boat into NY waters or they can claim you are "using" it in NY and hit you up for the sales tax.

Skipmac, you'd better be careful. The letter of the law is that if you purchased it in NY while you were a NY resident you are liable for the sales tax no matter where you keep the boat or how long it was in NY before you moved it.
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Old 10-09-2011, 07:15   #4
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Re: Purchasing in Rhode Island?

It is true. For Massachusetts residents who routinely travel to the Cape and Islands there is a risk of being considered evading taxes. A prominent example a couple of years ago: Sen. Kerry to pay $500K tax on yacht - The Boston Globe.

Since eastern Long Island is a pretty desirable destination, you may want to check among your fellow boat owners to see how NY handles residents who bring out of state boats in for visits.
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Old 10-09-2011, 07:20   #5
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It's not expensive to register in RI. I think I paid 250 for two years. It's based on length - so your fee could be less or more

I am not sure about the poster who said it's difficult to find dockage or a mooring in Rhode Island. That's not true either.

My boat is currently in Bristol RI and we are considering moving it next season. I have contacted 3 other marinas in RI and they all have space.

Regarding the closed head sticker RI requires - it's $25 and it lasts 2 or 3 years (don't recall - but it is definitely not an every year fee)
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Old 10-09-2011, 07:32   #6
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Re: Purchasing in Rhode Island?

Quote:
I am not sure about the poster who said it's difficult to find dockage or a mooring in Rhode Island. That's not true either.
Maybe things have changed because of the economy, but a couple of years ago it was tough to find a spot in RI according to several friends who purchased boats there and then wanted to keep them there. I had a tough time myself finding something in a harbor I wanted to be in a few years back. Places like Newport and Wickford used to have long waiting lists even for rental moorings, and if you want to put in your own you can just about forget about it. I suppose it really depends on which harbor you want to be in.

And to the other poster, theoretically NY gives NY residents no grace period for using the boat within NY waters. There have been a couple of court cases about this. I'm not sure what the chances are of getting caught though.
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Old 10-09-2011, 07:44   #7
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Quote:
Originally Posted by Kettlewell

Maybe things have changed because of the economy, but a couple of years ago it was tough to find a spot in RI according to several friends who purchased boats there and then wanted to keep them there. I had a tough time myself finding something in a harbor I wanted to be in a few years back. Places like Newport and Wickford used to have long waiting lists even for rental moorings, and if you want to put in your own you can just about forget about it. I suppose it really depends on which harbor you want to be in.

And to the other poster, theoretically NY gives NY residents no grace period for using the boat within NY waters. There have been a couple of court cases about this. I'm not sure what the chances are of getting caught though.


No your not going to get in Newport unless your parents put your name on the waiting list before you were born. Hahhaa

Wickford is an EXTREMELY small harbor with limited space.

Bristol, Jamestown, Portsmouth, Barrington, Warwick - all have large marinas with space available.

if you need any info on specific marinas you can message me direct

Good luck and RI is a great place to sail
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Old 10-09-2011, 07:56   #8
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Re: Purchasing in Rhode Island?

and you live elsewhere, is that right?
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Old 10-09-2011, 07:57   #9
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Originally Posted by mkovner
and you live elsewhere, is that right?

I live in MA
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Old 18-10-2011, 12:18   #10
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Re: Purchasing in Rhode Island?

Aloha and welcome aboard!
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