Cruisers Forum
 


Reply
 
Thread Tools Search this Thread Rate Thread Display Modes
Old 07-05-2019, 12:28   #16
Registered User

Join Date: Oct 2014
Posts: 7,371
Re: TAX - Buying a sailboat in California (San Diego) out of state

Sales and use tax in California:

The California sales tax rate is 7.25%. This rate is made up of a base rate of 6%, plus California adds a mandatory local rate of 1.25%. Depending on local sales tax jurisdictions, the total tax rate can be as high as 10.25%.

By way of example, the combined tax rate is presently 7.75% for purchases in the city of San Diego, County of San Diego.

Reference site, look up city and find rate.

https://www.cdtfa.ca.gov/taxes-and-fees/rates.aspx
Montanan is online now   Reply With Quote
Old 07-05-2019, 12:38   #17
Registered User

Join Date: Nov 2018
Location: Arizona USA
Boat: Tayana 37 PH
Posts: 212
Re: TAX - Buying a sailboat in California (San Diego) out of state

Quote:
Originally Posted by Montanan View Post
Sales and use tax in California:

The California sales tax rate is 7.25%. This rate is made up of a base rate of 6%, plus California adds a mandatory local rate of 1.25%. Depending on local sales tax jurisdictions, the total tax rate can be as high as 10.25%.

By way of example, the combined tax rate is presently 7.75% for purchases in the city of San Diego, County of San Diego.

Reference site, look up city and find rate.

https://www.cdtfa.ca.gov/taxes-and-fees/rates.aspx
Thanks, How and where to obtain the tax waver in CA?
THIS document outlines all
http://www.boe.ca.gov/pdf/pub52.pdf

 To apply for a use tax clearance, you must submit a BOE-106, Vehicle/Vessel Use Tax Clearance Request, to the BOE.
A BOE-106 is included at the end of this publication and is also available at www.boe.ca.gov.
 You may mail, fax, or submit BOE-106 to your local BOE field office or the Consumer Use Tax Section in
Sacramento. Addresses, fax, and telephone numbers for local BOE field offices are available at www.boe.ca.gov.
To mail your application with copies of supporting documentation directly to our Consumer Use Tax Section, please
send them to:
Consumer Use Tax Section MIC:37
State Board of Equalization
PO Box 942879
Sacramento, CA 94279-0037
Ruso is offline   Reply With Quote
Old 07-05-2019, 12:53   #18
Registered User

Join Date: Oct 2014
Posts: 7,371
Re: TAX - Buying a sailboat in California (San Diego) out of state

Quote:
Originally Posted by Ruso View Post
Thank you Montanan, My plan.. so far or one of the possible plans..
1. Make private party transaction - get bill of sale - run out of CA collecting all gas receipts as evidence.
2. Register the boat in the AZ (no AZ tax on private party transfer)
3. File USCG, travel to CA and RUN the boat out to Ensenada even hiring shipper to get her out of CA 3 mile line.
I can continue to my work from anywhere as long as I have internet and phone
Waiver is interesting concept.. could you elaborate on it more? I was thinking along this line sending letter to CA tax authorities outlining my plans and asking for reply letter.
I'm pretty much 100% certain that if the boat is not to be kept in Arizona, you will not be allowed to register it there. Registration is required in the jurisdiction the boat is located with temporary "visiting" periods of exemption from registering in the state your boat's water or land it is transiting.

Let's cut to the chase here. So again, WHERE WILL THE BOAT BE KEPT. That situs determines registration and property taxation.

Reference:
http://http://www.cdtfa.ca.gov/indus...de.htm#Vessels


Okay, so if you are considering Mexico for your port of choice:

Vessel Purchases in California for Use Outside of California:

You may not be required to pay California use tax if the only use of the vessel in California is to remove it from the state and it will be used solely thereafter outside this state.

This exclusion only applies to a purchase that would otherwise be subject to use tax. No use of the vessel, other than to remove it from the state, can be made. This exclusion does not apply to a purchase from a vessel dealer subject to sales tax.

For example, you purchase a vessel from a person (private party) in San Diego who does not hold a dealer's license or a California seller's permit and immediately leave for your vacation home in Astoria, Oregon. Along the way, you stop at Marina Del Rey, have dinner, and have a boat decal added. The next day you fish in the Channel Islands. Later, you stop and visit friends in San Francisco and take them for a ride on your boat. The exclusion from use tax does not apply because you did not simply remove the boat from the state.

Delays for emergency repairs made to the vessel must be verified as functionally necessary for the vessel to continue its departure from the state. You must provide supporting documentation such as fuel, repair, mooring, and/or lodging receipts to verify the property's departure from California, plus documentation showing that the vessel did not return during the applicable test period.

General information:

You must report your purchase of a vessel subject to use tax. In general, use tax applies to purchases of vessels for use in this state when an amount for sales tax is not paid to a California dealer. This includes purchases from out-of-state sellers, private parties, or California dealers when delivery of the vessel is taken out of state. Unless an exemption or exclusion applies, you must pay use tax on your vessel purchase. How you report your purchase and pay the use tax on your vessel purchase depends on whether the vessel is a "documented vessel" or an "undocumented vessel."

Documented Vessel

The term "documented vessel" means a vessel which is required to be documented with the United States Coast Guard (USCG) and for which the USCG has issued a valid marine certificate. As a general matter, a vessel is required to be documented with the USCG if:

It will be used in international waters (outside the 3-mile limit); or
The vessel is a commercial vessel of at least 5 net tons displacement (typically 28.5' in length).
Pleasure vessels meeting the above size requirement may be documented at the owner's option.

If you owe use tax on your purchase of a documented vessel, you must pay the use tax directly to the California Department of Tax and Fee Administration CDTFA (see heading below, Reporting the Use Tax on Documented Vessels).

Undocumented Vessel

A vessel which is not required to be documented with the USCG, and which does not have a valid marine certificate issued by the USCG, is an undocumented vessel. Undocumented vessels are generally required to be registered with the DMV. If you owe use tax on your purchase of an undocumented vessel, you generally must pay the use tax to the DMV when you register the vessel (see heading below, Reporting the Use Tax on Purchases of Undocumented Vessels).

Reporting Use Tax on Purchases of Documented Vessels

You must report your purchase of a documented vessel and pay the use tax directly to the CDTFA.

You can report your purchase of a documented vessel and pay the use tax by using the CDTFA's online services and selecting the option to File a Return or Claim an Exemption for a Vehicle, Vessel, Aircraft, or Mobile Home under Limited Access Functions.

Your tax payment is due on or before the last day of:

The month following the month you were contacted by the CDTFA, or
The twelfth month following the month in which you purchased the vessel, whichever period expires first.
Penalty and interest charges will begin to accrue once the due date has passed.

Reporting Use Tax on Purchases of Undocumented Vessels

Generally, the DMV will collect any use tax due on behalf of the CDTFA when you register your undocumented vessel.

You do not need to file a use tax return with the CDTFA if you registered your undocumented vessel with, and paid the use tax directly to, the DMV. However, if you purchased an undocumented vessel without completing registration with DMV, any use tax due on your purchase must be paid directly to the CDTFA. You can report your purchase of an undocumented vessel and pay the use tax by using the CDTFA's online services and selecting the option to File a Return or Claim an Exemption for a Vehicle, Vessel, Aircraft, or Mobile Home under the Limited Access Functions.

Your tax payment is due on or before the last day of the month following the month of purchase.

Penalty and interest charges will begin to accrue once the due date has passed.

Determining the Use Tax Rate

The use tax rate is the same as the sales tax rate and is based upon where you principally moor or berth a documented vessel or the address where you register your undocumented vessel.

For example, if you live in Anaheim, California, but moor your documented vessel in Long Beach, California, you must pay tax at the rate charged in the city of Long Beach.

You can look up the current tax rate by address on our Find a Sales and Use Tax Rate webpage. You may also find a list of current and historical rates on our California City & County Sales & Use Tax Rates webpage.

Determining the Amount Subject to Tax
The total purchase price of your vessel is subject to tax. The total purchase price includes any type of payment, such as cash, checks, the payment or assumption of a loan or debt, and the fair market value of any property and/or services traded, bartered, or exchanged for the vessel.

For example, if you purchase a vessel for $50,000 and give the seller your current vessel valued at $30,000, and $20,000 in cash, you owe tax on the entire $50,000 purchase price.

Credit for Tax Paid to Another State

If you paid tax to another state when purchasing your vessel, you may be entitled to claim a credit for the tax previously paid to another state.

For example, if you previously paid $1,500 sales or use tax to another state for the purchase of the vessel, and the California use tax due is $2,000, the balance of the use tax due to California would be $500.

Dealer vs. Broker Purchase

In general, if you purchase your vessel from a dealer who has a California seller's permit, the dealer is responsible for paying the sales tax to the CDTFA, unless the dealer is acting as a broker. However, if you purchase your vessel through a broker, the broker may, but is not required to, collect and report the tax to the CDTFA. If the broker does not collect any amount for sales or use tax, you are required to report and pay the use tax to the CDTFA

A broker is a person who arranges transactions between buyers and sellers, and who does not have the power or authority to transfer title of the vessel to the purchaser. A broker is not considered the retailer, and therefore is not responsible for the payment of tax. If the broker collects and reports the correct amount of tax to the CDTFA, you have no additional liability. However, if the CDTFA determines that an insufficient amount of tax was collected and reported, you will be billed for the additional tax. For example, if the broker incorrectly collects tax based on an 8 percent tax rate when the applicable tax rate was really 9 percent, you will be billed for the additional remaining tax due.

If the broker collects an amount for sales or use tax but fails to report it to the CDTFA, you will be credited for the amount of tax paid to the broker provided you have a receipt from the broker showing the amount of tax paid to the broker.

Claiming an Exemption or Exclusion from the Use Tax

If you claim that your vessel purchase is exempt or nontaxable, you must submit documentation to the CDTFA to support your claim.

You can report your purchase of a documented vessel and claim an exemption or exclusion using the CDTFA's online services and selecting the option to File a Return or Claim an Exemption for a Vehicle, Vessel, Aircraft, or Mobile Home under the Limited Access Functions.

Many tax exemptions and exclusions for vessel purchases have a test period of 6 to 12 months. If the applicable test period has not elapsed before the due date of your use tax payment, we recommend that you submit copies of documentation currently available. You may submit the remaining required documentation after your test period has expired. (See the below exemptions and exclusions for information on what documentation is needed to support your claim.)

The process for claiming an exemption for an undocumented vessel is the same as for a vehicle. Please see our Vehicle section, Claiming an Exemption from the Use Tax, for more information.

Vessel Not Purchased for Use in California

If you purchase your vessel for use outside of California, your purchase may not be subject to use tax.

However, when a vessel purchased outside of California , is first functionally used outside of California, and is brought into California within 12 months from the date of its purchase, it is presumed that the vessel was purchased for use in California and is subject to use tax if any of the following occur:

The vessel is purchased by a California resident.
The vessel is subject to property tax in California during the first 12 months of ownership.
If purchased by a nonresident of California, the vessel is used or stored in California more than one-half of the time during the first 12 months of ownership.
If the vessel enters California within the first 12 months of purchase, you may overcome the presumption that the vessel was purchased for use in California by providing the following documentation to support your claim:

A copy of your purchase agreement.
A statement signed by the seller verifying the date and location of the vessel's delivery out of state.
Documentation showing the location and use of the vessel between the date of sale and date of delivery, if different.
Evidence of tax paid to another state.
A copy of the insurance policy which indicates the navigational limits of the vessel.
Slip rental/mooring receipts, repair invoices, maintenance receipts, and fuel receipts from the date of out-of-state delivery and for the next 12 months. These documents should identify the vessel by name or documentation number.
Foreign port of entry documents, if applicable.
Credit card/bank statements supporting the location and use of the vessel from the date of out-of-state delivery and for the next 12 months.
Notes
*Pursuant to Article 3, Section 2 of the California Constitution, California's territorial boundaries extend three nautical miles beyond the outermost islands, reefs, and rocks of this state and include all waters between those islands and the coast.

Additionally, use tax does not apply to the purchase of a vessel brought into this state within the first 12 months of ownership exclusively for the purposes of repair, retrofit, or modification. Any repair, retrofit, or modification to a vessel must be done by a licensed repair facility. Therefore, the exclusion is inapplicable when a vessel that enters California during the first 12 months of ownership for the purpose of repair, retrofit, or modification performed by any person other than a licensed repair facility.

Notes
**For purposes of this exclusion, a licensed repair facility must hold an appropriate permit issued by the CDTFA and must be licensed to do business by the city, county, or city and county in which it is located if the city, county, or city and county so requires.

Personal Property Tax

In addition to sales or use tax, personal property tax may be due.

Please contact your local county assessor's office for more information

List of county assessor office contacts:
Listing of County Assessors, Auditors and Auditor-Controllers, Clerks of the Board, and Tax Collectors – California State Board of Equalization
Montanan is online now   Reply With Quote
Old 07-05-2019, 13:00   #19
Registered User

Join Date: Nov 2018
Location: Arizona USA
Boat: Tayana 37 PH
Posts: 212
Re: TAX - Buying a sailboat in California (San Diego) out of state

Thank you, Montanan
It seems I have good chances to avoid "use" tax.
Ruso is offline   Reply With Quote
Old 07-05-2019, 13:06   #20
Registered User

Join Date: Oct 2014
Posts: 7,371
Re: TAX - Buying a sailboat in California (San Diego) out of state

If you promptly say, adios to California with your new to you boat and make a trip directly to Ensenada, Mexico then indeed it would appear that no Golden Bear State sales / use taxation or property tax should be liable.

I don't know the rules in Mexico as to impuesto de uso.
Montanan is online now   Reply With Quote
Old 07-05-2019, 13:17   #21
Registered User

Join Date: Nov 2018
Location: Arizona USA
Boat: Tayana 37 PH
Posts: 212
Re: TAX - Buying a sailboat in California (San Diego) out of state

Now updated plan if anyone see any weaknesses.
1. Make private party transaction - get bill of sale (date and TIME in)
2. Get from seller signed by me and him agreement I can operate the boat after I present the boat registration in person to him and marina management
3. Run out of CA collecting all receipts on the way and in AZ as evidence.
4. Register the boat in the AZ (no AZ tax on private party transfer)
5. Drive to CA collecting all receipts.
6. Tape the registration sticker to the boat and receive letter of operational release from the owner and marina (discontinue the slip usage)
7. RUN the boat out to Ensenada even hiring skipper to get her out of CA 3 mile line.
8(optional) Do some strange things outside of CA 3 mile line to get attention of Coast Guard and politely ask for document they boarded the boat heading to Mexico
9. In Ensenada collect all receipts related to slip and the boat.
Ruso is offline   Reply With Quote
Old 07-05-2019, 13:21   #22
Registered User

Join Date: Oct 2014
Posts: 7,371
Re: TAX - Buying a sailboat in California (San Diego) out of state

Hey Ruso:

Mexico has provisions for Temporary Imports of Vessels, but if your boat is not documented by one of the US or documented by the USCG then I suspect it requires Mexican status. Not sure what their registration / documentation requirements are south of our border. Google such.

http://www.marinadelapaz.com/faq/how...tay-in-mexico/

Use caution when transiting to Mexico, be sure to navigate well clear and far around Trump's seawall. Since Mexico hasn't paid for it [yet], there aren't any navigation aids deployed to warn mariners and to keep boats from bashing into it. And I don't think any of the published marine charts or electronic databases have been updated as to its presence which seawall lies just under the surface, rising and lowering with the tide and waves.

Feliz navegacion.
Montanan is online now   Reply With Quote
Old 07-05-2019, 13:24   #23
Registered User

Join Date: Nov 2018
Location: Arizona USA
Boat: Tayana 37 PH
Posts: 212
Re: TAX - Buying a sailboat in California (San Diego) out of state

Quote:
Originally Posted by Montanan View Post
Hey Ruso:

Mexico has provisions for Temporary Imports of Vessels, but if your boat is not documented by one of the US or documented by the USCG then I suspect it requires Mexican status. Not sure what their registration / documentation requirements are south of our border. Google such.

http://www.marinadelapaz.com/faq/how...tay-in-mexico/

Use caution when transiting to Mexico, be sure to navigate well clear and far around Trump's seawall. Since Mexico hasn't paid for it [yet], there aren't any navigation aids deployed to warn mariners and to keep boats from bashing into it. And I don't think any of the published marine charts or electronic databases have been updated as to its presence which seawall lies just under the surface, rising and lowering with the tide and waves.

Feliz navegacion.
Gracias Montanan,
Reading through BaHaha notes they said any US state registration is sufficient to open TIP and sail in Mexico waters.. USCG certificate will take a while to receive.
Ruso is offline   Reply With Quote
Old 07-05-2019, 13:32   #24
Registered User

Join Date: Oct 2007
Location: Charleston, SC
Boat: Stevens 47
Posts: 199
Re: TAX - Buying a sailboat in California (San Diego) out of state

Just property tax, and then only if you keep the vessel in the state more than 6 months or so. Check with the assessor in the county in which the vessel is moored.
sainted is offline   Reply With Quote
Old 07-05-2019, 13:36   #25
Registered User

Join Date: Oct 2014
Posts: 7,371
Re: TAX - Buying a sailboat in California (San Diego) out of state

Quote:
Originally Posted by Ruso View Post
Now updated plan if anyone see any weaknesses.
1. Make private party transaction - get bill of sale (date and TIME in)
2. Get from seller signed by me and him agreement I can operate the boat after I present the boat registration in person to him and marina management
3. Run out of CA collecting all receipts on the way and in AZ as evidence.
4. Register the boat in the AZ (no AZ tax on private party transfer)
5. Drive to CA collecting all receipts.
6. Tape the registration sticker to the boat and receive letter of operational release from the owner and marina (discontinue the slip usage)
7. RUN the boat out to Ensenada even hiring skipper to get her out of CA 3 mile line.
8(optional) Do some strange things outside of CA 3 mile line to get attention of Coast Guard and politely ask for document they boarded the boat heading to Mexico
9. In Ensenada collect all receipts related to slip and the boat.

Back again to where do you intend to use and keep the boat.

Second question: Are you and will you remain a resident of Arizona?

As to Arizona laws:
https://www.boat-ed.com/arizona/stud...402_700145922/

Arizona application for transfer of ownership must be made within 15 days of purchase.
If you change your address, you must notify the Arizona Game and Fish Department (AZGFD) within 15 days either in writing or online at: www.azgfd.gov/watercraft.
If you purchase a numbered vessel or if your watercraft is sold, stolen, lost, destroyed, or abandoned, you must report it to the AZGFD within 15 days.

Vessels registered in another state or country may operate on Arizona waters for 90 consecutive days before Arizona registration and numbering are required.

Under federal and state law, you must register your watercraft in the state of principal use.

If your watercraft is used more often in Arizona waters than your state of residence, then you must register your watercraft in Arizona. If your watercraft is used more often other than in Arizona waters than in your state of residence then you need to register in the state which waters the watercraft resides.

Larger recreational vessels owned by U.S. citizens may (at the option of the owner) be documented by the U.S. Coast Guard (USCG).

Unless you intend to moor the vessel on Arizona sand it would seem the boat should be registered elsewhere where it is to be kept.

As to Mexico, this may be of assistance.

The following guideline is based on brochures supplied by SECTUR. Reprint of those brochures is made with approval of the Mexican Consulate. Be sure to check with SECTUR or the Mexican Consulate prior to your departure to make sure you have the most up to date information.

What papers do I need to enter my vessel temporarily into Mexico?

1. Title (lease agreement in your name if the vessel is rented).
2. Proof of citizenship or resisdency in a foreign country.
3. Choose one of the following depending on the way you entered the country:
a) Departure clearance from the original point of departure, or similar official document in the event that you enter by sea.
b) Title for the trailer (or lease agreement in your name if trailer is rented), in the event that you enter by land.
What should I do when I arrive in Mexico?

1. Obtain a Tourist Visa (FMT) from the immigration office.
2. Obtain from Customs a temporary import permit for the vessel and the trailer.
3. Pay $ 10.00 (in U.S. Currency) with an international credit card, or deposit with the Armed Forces Bank, BANJERCITO, a bond for the value of the vessel (this procedure is applicable only when the vessel enters by sea, if you enter by land the permit for your vehicle will cover your vessel).
Remember:
In the event that you decide to return to your country of origin and leave your vesel in the care of the marina, you must return to the marina at least once a year.

Requirements To Bring Your Boat Into Mexico

If you want to bring into the country a touring motor boat or a sailboat more than four and a half meters long (14'-6"), you must comply the following requirements:

I. If you are going to enter by sea:
1. Upon your arrival at the first port of entry in Mexico, go to the immigration office and obtain a Tourist Entry Form for each passenger aboard, if you had not previously obtained this form from a Mexican consulate, Mexican Government Tourism Office or embassy.
2. Proceed to customs and obtain a Temporary Import Permit, presenting the following information:
a) Vessel Ownership Title
b) Document verifying that the vessel's owner resides in a foreign country (Tourist Entry Form)
c) The credit card, bond or deposit mechanisms are three available alternatives.
II. If you are going to enter by land:
1. Proceed to the immigration office at the crossing where you enter into the country and obtain your Tourist Entry Form.
2. Proceed to customs and obtain a Temporary Vehicle Import Permit, stating on the back of said permit the following information about your vessel:
a) Vessel Ownership Title
b) Document verifying that the owner of the vessel resides in a foreign country (Tourist Entry Form)
c) The credit card, bond or deposit mechanisms are three available alternatives.
It is important to indicate that once you enter the country (whether you came by sea or by land) you will be able to proceed to a marina, and obtain a form to register your vessel. Once this has been done, remind the marine operator to inform the proper Tax Office for the area where the marina is located, or the Customs office at the port of entry, that your boat is registered at the marina.

In the event that you decide to return to your country of origin, and leave your vessel in the care of the marina, you must return once a year to the marina.

If you want to bring into the country a touring motor boat or a sailboat less than four and a half meters long (14'-6"), you must comply with the procedure for temporary import, meeting the following requirements:

1. The vessel is the property of the person residing in a foreign country.

2. Present identification verifying your nationality and a current Tourist Entry Form.
Your motor boat or sailboat can remain in the country for the period authorized on the Tourist Entry Form.

NOTES: In the event that rented sailboats or motor boats are involved, you must present proper rental agreement in your name.

The Temporary Import Permit for your car, together with the vessel information will provide legal authorization to enter your vessel into the country until you arrive to a tourist marina.

Requirements For The Temporary Entry Of Trailers

The trailer used to transport your vessel can be imported under two conditions:
Tourist Marines Regulation which allows you to leave your trailer in the care of the marina for the length of time you desire.
Temporary Immigration Regulations, according to which your trailer can remain in Mexico for the length of your authorized stay.
You may chose the tourist marine regulations whenever:
1. The trailer is your property,
2. It is registered with an authorized marina, which shall be resposible for the same; and
3. You file through the Marina, a notice to the customs Office or the local tax collection office for the area in which the marina is located , stating that said trailer shall not be taken out of the country while under the care of the marina.
You should take into account that trailers brought into the country, according to tourist marinas regulations, can only travel within the national territory while transporting said vessel, therefore, if the trailer leaves the country, so must the vessel.

In the event you want to leave your vessel in the care of a marina, but want to leave with your trailer, all you need to do is leave the vessel in the care of the marina meeting all the tourist marina regulations, and bring the trailer under the temporary import regulations, which allows trailers to be in the country for one month, having to be taken out of the country after that period of time.

When you bring your vessel on a trailer that does not belong to you, it shall enter the country under the temporary import regulations.

IMPORTANT

In those cases when a vessel has to be pulled by a three ton or larger tractor trailer, arrival and departure arrangements must be made with a Mexican carrier to transport your vessel inside national territory.

In those cases when a vessel is pulled by a private vehicle owned by a tourist importing the vessel, you shall register the vessel and it's trailer on the back side of the temporary import permit used for the vehicle, describing with precision the characteristics of both the vessel and trailer.

In those cases when a vessel is pulled by a foreign private vehicle not owned by the tourist importing the vessel, a permit shall be issued for the vessel and trailer and a separate temporary import permit for the vehicle, using the same forms used for automobiles.

It is important to point out that the marina operator where the vessel is docked can import any parts required for its maintenance and repair.

Requirements To Sail In Mexican Waters

Arrival and Departures Upon your arrival in Mexico, if you want to sail from one port or marina to another, even if you do not leave the country, you need to have the proper arrival and departure clearances:

I. ARRIVALS

To authorize the arrival of you vessel to a marina or port you need:

a) Coastal Sailing:
Departure clearance from the port of origin or any other legal document verifying the vessel's point of departure.
b) Open Sea Sailing:
1) A departure clearance from the port of origin or any other legal document verifying the vessel's point of departure.
2) A Health Permit, whenever so required by the proper authority, taking into account the vessel's original point of departure.*
*NOTE: Please check with the nearest Mexican Consulate if this regulation applies to you.

II. DEPARTURES

To authorize the departure of your vessel to a marina or port you need:

a) Sailing within the same port:
A verbal agreement from the Harbor Master or his representative.


b) Coastal Sailing:
1) Special form for vessel departure clearance.
2) Inspection Certificate from the vessel's country of origin or similar document to verify it.
3) Verification that there are no accounts pending at the marina.
4) Health permit, whenever so required by the proper authority, taking into account the vessel's original point of departure.*

*NOTE: Please check with the nearest Mexican Consulate if this regulation applies to you.
Montanan is online now   Reply With Quote
Old 07-05-2019, 13:37   #26
Registered User

Join Date: Nov 2018
Location: Arizona USA
Boat: Tayana 37 PH
Posts: 212
Re: TAX - Buying a sailboat in California (San Diego) out of state

Quote:
Originally Posted by sainted View Post
Just property tax, and then only if you keep the vessel in the state more than 6 months or so. Check with the assessor in the county in which the vessel is moored.
I don't think so.. "use" is a key word. It was well outlined in the doc I posted early here. As soon as you "use" the boat - BOOM! you owe the "use" tax
Most expensive one time "pleasure" ride
Ruso is offline   Reply With Quote
Old 07-05-2019, 13:42   #27
Marine Service Provider

Join Date: Sep 2012
Location: Virgin Islands
Boat: PDQ 36, 36'5", previously Leopard 45 cat and Hunter 33 mono
Posts: 1,345
Re: TAX - Buying a sailboat in California (San Diego) out of state

Slight thread drift: I bought my boat in the BVI, through a broker based in Florida. At the time, no sales tax was required (or duty, since, at the time, South African built boats were duty free), since the boat was not to be based in Florida and was documented in Delaware, which has no sales tax. The boat has made two trips to the US, over the years, each lasting a few months including movement up and down the East Coast. Otherwise, it has been based in the BVI, where I operate it in charter, with Trade License, etc. etc. This has been the case for about fifteen years. If, as may be the case, I were to move to California, with the boat, does anyone know the tax consequences? I presume there would be no sales or use tax (but maybe because Delarare had no sales tax, there might be), but that there would be an annual property tax of ? Any thoughts?
contrail is offline   Reply With Quote
Old 07-05-2019, 13:45   #28
Registered User

Join Date: Nov 2018
Location: Arizona USA
Boat: Tayana 37 PH
Posts: 212
Re: TAX - Buying a sailboat in California (San Diego) out of state

As for AZ regulation my intent is bring the boat to Sea of Cortez Puerto Penasco and trail it to AZ lake .. The trip might take years, but.. All Mexico ports filled with variety of US States registered boats - no issue as long as the TIP is current.
Ruso is offline   Reply With Quote
Old 07-05-2019, 13:46   #29
֍֎֍֎֍֎֍֎֍֎

Join Date: Apr 2006
Posts: 15,136
Re: TAX - Buying a sailboat in California (San Diego) out of state

Ruso, since you are planning to RUN with the boat...one might sincerely hope it has been competently surveyed and that you are Real Damn Sure no sea trails, no repairs, no problems may stop your first run down to Mexico from going happily.

But if you follow the correct procedures, line up the paperwork, comply with the quirks of California, no RUNning should be necessary. Cali, like most states, doesn't really care if you walk or run. If they decide you left without paying something, they'll dog you for the rest of your life.

I don't know about the attorney you found, but the manta.com site? Manta apparently is one of many data aggregation sites that puts together information from many sources--and often is incorrect about it. So, caveat emptor with that.

Once you've figured out the legal way to get your boat without paying use tax, you might want to send certified paper mail to the Cali authorities (tax department? vessel registration? attorney general?) laying it out and saying "I plan to make a private purchase followed by removing the vessel from CA waters within xx days/hours, it is my understanding that according to California (cite law/regs) there will be no use, sales, or other taxes due to the State of...Is this correct?"

And while they may take 30 days to reply...If they DO reply, then you may be golden, with no need to RUN.
hellosailor is offline   Reply With Quote
Old 07-05-2019, 13:53   #30
Registered User

Join Date: Oct 2014
Posts: 7,371
Re: TAX - Buying a sailboat in California (San Diego) out of state

Quote:
Originally Posted by contrail View Post
Slight thread drift: I bought my boat in the BVI, through a broker based in Florida. At the time, no sales tax was required (or duty, since, at the time, South African built boats were duty free), since the boat was not to be based in Florida and was documented in Delaware, which has no sales tax. The boat has made two trips to the US, over the years, each lasting a few months including movement up and down the East Coast. Otherwise, it has been based in the BVI, where I operate it in charter, with Trade License, etc. etc. This has been the case for about fifteen years. If, as may be the case, I were to move to California, with the boat, does anyone know the tax consequences? I presume there would be no sales or use tax (but maybe because Delarare had no sales tax, there might be), but that there would be an annual property tax of ? Any thoughts?
No California sales or use tax should apply because your purchase was more than 12 months ago and the boat remained out of California for that period of time before you become a resident.

It sounds like you will likely be "importing" the boat into the USA when you move to California since it was made in SA and may not have previously been imported before your purchase in BVI. Check with the Donald as to what the tariff will be when you want to bring into to the USA. US Customs can advise in that regard and you will likely need to register in California unless the boat is documented by the USCG. Not sure about your citizenship as to if you can document the boat in the USA.

It will become subject to property tax when it is brought into California for other than a temporary transit period. Contact the applicable county assessor when you get the boat settled into it mooring / marina.
Montanan is online now   Reply With Quote
Reply

Tags
boat, buying, cal, california, sail, sailboat, san diego

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
When Use Tax paid buying boat california arch007 General Sailing Forum 23 18-07-2017 08:19
Crew Wanted: PNW to San Francisco, San Fran to San Diego and San Diego to Mexico svasunto Crew Archives 19 09-09-2015 19:44
Canadian buying a California Boat that is state only registed? SS Little-Devil Dollars & Cents 4 21-04-2012 12:48
Buying Mexico, bringing to California - Tax question standardhuman Dollars & Cents 6 22-06-2011 17:23
Washington State purchase with out-of-state residence cyclepro Dollars & Cents 7 06-06-2011 08:55

Advertise Here


All times are GMT -7. The time now is 09:05.


Google+
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.
Social Knowledge Networks
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.

ShowCase vBulletin Plugins by Drive Thru Online, Inc.