Property Tax on My New Boat !

[Jerry Woodward]

Another way of looking at the sales tax in CA is to factor that into the purchase price up front. Use it as a negotiating tool. One could even write the contract with the clause "seller pays sales tax". A yearly property tax of 1% doesn't bother me. If I'm living there and using state waterways and facilities, $83.00/month (on a $100K boat) seems reasonable.

[Capt.Don]

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?

Same thing here. I received a letter from the county tax assessor's office with a tax base valuation several thousand dollars more than I paid for our boat. After dozens of calls and letters to the assessor's office, claiming that the assessed value should be the price I paid, not some unknown artificial value. I ended up filing a petition. BTW, you have to pay the assessed value, even though you are contesting the valuation A year later, I received a hearing date (17 months after we purchased the boat). About two month's before the hearing, the county inspector called and we chatted about my position - i.e., how could the county assess the value for more than I paid? At that time, I felt the county used comparable valuations, which were more than I paid. He pointed out the assessed value based on what it would cost to replace, including use tax. This is how they came up with the valuation. After verifying the referenced material and calculating an additional 9.5% use tax, the assessed value was proper (not reasonable, not right....) - I cancelled the hearing.

Yes, it is taxing on taxes and I'm not happy about this. What amazed me was that the assessment valuation letter didn't explain this. No-one that I spoke with could explain that this was the normal procedure. At the time, I couldn't imagine a system taxing on sales/use tax - I thought this was like property tax, based on purchase price. Only the inspector, who called to schedule an inspection prior to my hearing, could explain the process and refer me to the proper documentation. A lot of bother for everyone and what I though was an unresolved issue for over a year.

Living in California, we are taxed to death. It isn't going to get any better soon. Time to move on......
Don

[hellosailor]

Use taxes, county and municipal surcharges, assessment value methodology...those are all things that a native normally knows about their home tax rules. More pitfalls for the unwary in tax shopping.

[senormechanico]

I don't know if it's the same in Mexico as it was back in the '90's, but they were glad to issue 20 year import permits for free just to get the cruiser's shoreside dollars via local businesses.

Imho, THAT'S the way to run a country's tourist business on a profitable basis.

[Hearts Content]

California is the perfect example of why socialism doesn't work. Who's going to pay for socialism when all the earners leave?

[kthoennes]

Or wasn't it Margaret Thatcher who said that socialism is just fine until you run out of other people's money?

I really don't know why anyone lives in California any more. Annual taxes and registration fees on my 32 footer: $42. South Dakota.

[TeddyDiver]

Originally Posted by kthoennes

Annual taxes and registration fees on my 32 footer: $42. South Dakota.

Annual? I pay about the same ones while registering and thats it not a cent more.. never
And you talk about socialism

[S/V_Surya]

I lived in Kalifornia for 20 years and paid personal property tax on my boat for 20 years. I now live in Pennsylvania and keep my boat in Maryland and pay 5 bucks per year. Ha Ha Ha Ha Ha. You can kiss my rosy red puduchi Kalifornia (wiggle Butt), I will never return to that state even for a visit.

[hellosailor]

"Imho, THAT'S the way to run a country's tourist business on a profitable basis. "
Offhand I agree with you, but as soon as you say "country" and "business" politics gets into it. And without politics there's still marketing and economics. Sometimes you actually can make more money if you restrict the number of customers and allocate the resources. Which is why so many bars have high covers, to keep out the riffraff who will try to nurse one beer all night, and make sure the folks who come in won't complain if the beer costs ten bucks.

If you've got lots of poor coastal towns and any business beats no business...by all means, go for the volume. I suspect Baja and Acapulco would have vastly differing opinions on which approach is right.<G>

But then again, 20 years ago a gringo couldn't even buy real estate in Mexico, that's changed too.

[senormechanico]

At the risk of thread drift, it used to be that governments were in place to protect and serve the citizenry.

Now their motive seems to be to collect as much money from the citizenry as possible.

[Capt Phil]

I truly believe that the taxing authorities in Kalifornia all are cut from the same cloth. Even though I bought my boat in Washington State, sailed the PNW for over 5 months before cruising down to San Diego, the State Board of Equalization came after me for sales tax on the purchase, 6 years later, two years after I sold the boat. With penalties, they claimed I owed them nearly $20K. It took a trip to Canada and much traveling around scaring up receipts from places we had moored 6 years after the fact to finally convince them I didn't buy the the boat in CA or keep it in their state for 6 months after I bought it.
San Diego County dinged me for a years use tax even though I was cruising in Mexican waters for over 1 1/2 years because I kept a slip in San Diego. When I showed them the marina receipts, yard bills and fuel receipts from Mexico they just laughed and said their lawyer could beat my lawyer and it would be cheaper to pay than fight them in court.
As a result, I no longer live in CA, won't shop or visit there and try to not even to drive to the state even though I live next door. There is poison water in that well!! Capt Phil

[Rhapsody-NS27]

I recently got a hicup on the paperwork when I bought my boat so I haven't even paid the sales tax yet. I'm not sure what the rules are for yearly costs but haven't really found much. Right now, I'm looking at paying the sales tax in one state (TN) and using the boat in another (KY). I'm sure I'll find out soon enough. So far, I can see I can avoid CA for all time in the future.

[Capt Phil]

Good Plan, Rhapsody.. Capt Phil

[zeehag]

property tax will be assessed by the counties that charge it until you advise that particular county you are no longer there--might want to include current rent bill or one from whenever your departure from that county was.

kali was never socialist--more like fascist.

[montenido]

Yes, Cali has some issues, and yes they will tax the air you breathe, but we sail all year round .

Enjoy your other locations.

Cheers, Bill