Canadian buying a boat in California

[rigormortis]

There were no taxes in Oregon (! land of the free) and my boat has not yet nor will in the future enter Canadian waters so no taxes for Pete.
Too many better places to sail/live in my declining years.
Pete

[roverhi]

California has made changes recently in how they tax boats with out of State owners removing the boat from the State. A California broker should be intimately familiar with the laws and know what you can and cannot do. Sales tax in California is close to 10% most places so it could be a hefty hunk of change if you get hit with it.

You could buy the boat and just not register it in California. The State wouldn't know you from Adam and doesn't know the boat was sold unless you tell them. I got hit by the State for sales tax almost 4 years after I bought the boat. Only got found out then because the previous owner hadn't paid his sales tax when he'd bought the boat several years before he sold it to me and they cross checked the local personal property tax. I think it's sometime in March, but may be wrong on that, but if you are not in California when the Marinas are required to report all the boats you should be golden.

[avb3]

Originally Posted by webejammin

...........
The only Canadian folks I've heard of not paying Canadian taxes was a catamaran named SlapDash which spent 2 years or so cyrcumnavicating and then back to the US to sell her so no Canadian taxes because they didn't go to Canada or had perminate moorage in any other country.

That is correct, as long as you do not touch Canadian jurisdiction, then no tax. It is exactly what I will be doing when I get my boat; purchase likely in FL, flagged Canadian, and no problem going to Cuba

[Nemo55]

In that case,,would i still de-register with the coast guard in SanFran?,,and how would i flag it Canadian without registering in Canada?
I am thinking somehow,,a coast guard inspection or Marina is going to be requiring some kind of answers here.
If it was not transferred right away,,how would that play out with me as her skipper?
Man,,,is this ever confusing...

[s/v Thea]

Nemo55,

I think freight was about 5500, was in 2004 so not too fresh in my memory.

When we were documenting the boat, the lady taking the paperwork said you could document the boat without bringing it into Canada (and paying tax). At that time they required the boat to be 'measured', if you did that out of country you would have to pay expenses for the measuring guy to travel to where the boat was.

Doug

[J_m]

Originally Posted by roverhi

You could buy the boat and just not register it in California. The State wouldn't know you from Adam and doesn't know the boat was sold unless you tell them. I got hit by the State for sales tax almost 4 years after I bought the boat. Only got found out then because the previous owner hadn't paid his sales tax when he'd bought the boat several years before he sold it to me and they cross checked the local personal property tax. I think it's sometime in March, but may be wrong on that, but if you are not in California when the Marinas are required to report all the boats you should be golden.

Perhaps, but CA is being more aggressive on collecting these taxes -- and they will get notified at some point i.e the de-documentiing (esp if the home port was in CA) and may send you a bill -- leaving the task of proving to them you do not owe them the tax. They might ask for Marina repair, fuels receipts etc to prove for what and how long you kept the boat in CA. I would get the advice of a knowledgeable broker that is familar with the process. I would not rely on internet forum advice only.

[Nemo55]

I am running on a very tight budget,,so brokers are out of the question.

[terminalcitygrl]

Everything you need to know:

Pat's Boating in Canada: Importing a Boat from the U.S.A.

[avb3]

Originally Posted by Nemo55

In that case,,would i still de-register with the coast guard in SanFran?,,and how would i flag it Canadian without registering in Canada?

There is no problem registering it in Canada even though it is not physically here.

Here is a link to the PDF booklet. It is current, even though dated 2000.

[Morrissey]

Nemo
Settle the purchase, de-register with USCG as a first step. Well, actually if staying at a marina for any time after purchase then Insurance will be the first step.....
You'll need that USCG paperwork and Bill of Sale info to register in Canada.
When Canadian rego completed, leave California under Canadian flag. Pity its in San Fran - not simple to go to a port in Oregon or Mexico. But you need to stay out of California for a minimum time, think it could be 15 days. Then re-enter California under Canadian flag with a cruising permit for the length of time you wish/need.

Someone said if you did not stay in California more than 89 days after purchase you will not be liable for state tax. For Washington its 45 days, even to a foreign national if a WA registered broker is involved. Broker gave me the relevant statute. Also, in Washington you can purchase a one year cruising permit for $500 at the time of vessel purchase and can also get up to three two month cruising permits for $25 each but requiring an over night stay out of country (in Canada or Mexico) each renewal. I'm not sure if the one year permit is an alternative to leaving within 45 days or not. But at least Canada isn't far away from Seattle so I'll just leave within time limit, to be safe.

So, just get out of California before the relevant time limit and State taxes will not be applicable. Canadian taxes will be applicable on first entry to Canada. But if no first entry, then you wont pay those either, as Pete says.

[Nemo55]

Thanks,,

Originally Posted by avb3

There is no problem registering it in Canada even though it is not physically here.

Here is a link to the PDF booklet. It is current, even though dated 2000.

[Nemo55]

Thanks "T" girl

Originally Posted by terminalcitygrl

Everything you need to know:

Pat's Boating in Canada: Importing a Boat from the U.S.A.