Property Tax on My New Boat !

[avb3]

Originally Posted by hellosailor

Just bear in mind that if you set up one of those LLCs, you are creating a permanent paper trail showing the creation of what is called a "sham corporation" and your tax fraud, if you have done this for no business purpose except evasion of your own state use tax, or other taxes.

Yes, when a corporation has no legitimate business purpose except evasion of taxes, that's a crime. The IRS has prosecuted this at a federal level for decades, the states will eventually catch on and start prosecuting the same way they went after Delaware boat registrations in the 80's.

Montana doesn't care, they're getting revenue.

If the corporation has some other legitimate business purpose, that's something else again.

One needs to be careful; tax AVOIDANCE is legal and should be encouraged, tax EVASION is illegal.

Each situation is different, and if you have any substantial assets, it is best to talk to an accountant and/or tax attorney. Tax attorneys are not cheap, and a good tax accountant can recommend one if needed.

Often setting up a trust to own parts of your estate that you donate to it may be a good avenue.

In short, avoid paying tax as much as possible, just make sure your not evading paying any.

[tsawyer]

Florida has a new cap on sales tax of $18000.

dor.myflorida.com/../gt800006.pdf

Tom Sawyer, CPA

[goboatingnow]

It claims to be the most free and fair country in the world. Go figure.

Yes The great "trick" of the american dream, was to make its citizens beleive its own propaganda. Americans constantly tell me the have a low tax economy compared to Europe, that doesnt withstand inspection once all taxes are taken into account.

Guys you could always move to the UK or many European countries, little or no property taxes!! or course it probably means swapping one set of problems for another of course

Dave

[Galdarol]

Originally Posted by Randyonr3

And now you know why, A guy and his wife from California, had thier boat shipped to Oregan, documented out of Coos Bay and still to this day, hold an address in Charlston Oregon.........And on the first day, of the first month, of each year, when numbers of boats are turned into the state for tax colection.. You'll find that couple a couple hundred miles off the coast, doing the tax dance........

Do you have any idea what rate OR charges, if they charge at all? I'm liquidating my holdings in CA and have an uncle in that state.
Thanks.

[Galdarol]

Anyone on this forum know the rates or have a link to an encyclopedic chart/spreadsheet of tax rates for sailing vessels? As I mentioned before, I'm looking to liquidate my California holdings, and could move my address to Washington, Oregon, Nevada or Arizona easily.
My wife and I are thinking of teaching English overseas, likely in the Pacific: Chile, Japan, China, so any advice on those countries might be interesting as well.

[capn_billl]

Originally Posted by TaoJones

So the notion that out-migration accounts for California's budget deficit is nonsense. It's a flimsy excuse foisted on a gullible public to excuse state government's own profligacy.

TaoJones

Actually I believe it. The problem isn't the number of people, it's the number of taxpayers.

[MarkSF]

We've still heard nothing more from the OP.

[jeremiason]

Originally Posted by jazzsailor

I just received my first property tax assessment on my new boat from the county tax collector (California). To my consternation, the basis for the assessment includes an additional county sales tax on top of the original purchase price plus the original sales tax already paid at the time of purchase. In effect they're assessing a tax on a tax, inflating the boat's assessed value an additional $16,000.00 over and above the original cost!

Would anybody happen to know if a county can legitimately increase an assessment by adding an additional sales tax on unsecured property in the state of California? Or had have dealing with this issue?

Call the Tax Assessor's Office in your County or better make a personal visit with a copy of your sales receipt.

Someone made a mistake and keyed in the total sales, including the State's Tax. They should correct it.

Also ask them to re-assess the value of the boat. I purchased my new boat in 2006 and every year I would contact the Alameda County Tax Assessor and they would re-assess the value of the boat over the phone.

Over a four year period, I had devalued the boat for tax purposes by over 100K thus saving about a $1000 per year.

[Randyonr3]

Originally Posted by Galdarol

Do you have any idea what rate OR charges, if they charge at all? I'm liquidating my holdings in CA and have an uncle in that state.
Thanks.

The tax rate in OR.......... how about "0".. there is NO sales tax........

[hellosailor]

BoatUS.com: Government Affairs

BOATUS has published a list of "boat" taxes for all 50 states for years now. They also list whether a state has personal property tax, and whether that's also levied on boats.

And even then, you need to check state and county offices to make sure you're not stepping into anything else.

Of course, unless you plan to physically keep the boat in Oregon, or you're gypsying around, some other state may tell you you've overstayed your welcome, here's your tax bill.

[maxingout]

All of this tax talk sound like a good reason to sell everything and go cruising. You should purchase a boat that is just coming off a short cruise in great condition with all new gear. Step on board and set sail offshore. You can sort out the details out once you are beyond the reach of the tax man.

People come from Australia and purchase American yachts offshore these days, and they quickly set sail avoiding California taxes.

[matauwhi]

Originally Posted by maxingout

People come from Australia and purchase American yachts offshore these days, and they quickly set sail avoiding California taxes.

A few wise Kiwis also do this, mate. They just hang a left at Fiji! Cheers.

[Charlie]

Originally Posted by Galdarol

Anyone on this forum know the rates or have a link to an encyclopedic chart/spreadsheet of tax rates for sailing vessels? As I mentioned before, I'm looking to liquidate my California holdings, and could move my address to Washington, Oregon, Nevada or Arizona easily.
My wife and I are thinking of teaching English overseas, likely in the Pacific: Chile, Japan, China, so any advice on those countries might be interesting as well.

Oregon has no sales tax. Just drove thru there and can verify that.

[xymotic]

Oregon has no sales tax, however they do have a property tax and a documented vessel is "real" property just like a house.

"Tangible personal property includes but is not limited to all chattels and movables, such as boats and vessels"

http://www.leg.state.or.us/ors/307.html

[hellosailor]

Ah, xymotic? Your own quote says "chattels and movables, such as boats". That confirms what the rest of the US says, boats are personal property or chattel goods, they are very much NOT "real property" just like a house.

In general there's "real property" meaning you can't pick it up and move it. And then everything else. Most folks, most of the time, can't just pick up the lower 40 and the family home and move it down the road. Well you CAN these days, but the equipment is kinda big and expensive.<G>

Also note the Oregon tax laws, like any other state, apply to transactions in the state and state residents in the state. But they don't affect the status of non-residents who may still owe use tax on a purchase that is made there.

So unless you live there AND plan to buy a local boat...the tax laws in any state probably are only the start of the trouble you get into with a "tax dance".