Figuring Finances: Registration Question

[sledjockey]

I did a search (or 12) before I posted, but couldn't find what I was looking for. I am sorry (in advance) if this has already been covered. If it has, I will play the "NewB" card.......


I went down to the DMV to start looking at annual costs for licensing and registering a boat. To do this I picked a couple online, printed the information, and proceeded to the local WA state DMV. It appears that the original price at purchase is going to be used to for the excise taxes, original licensing, etc., at around 10% of the purchase price. Annual charges are around .5% of that price with some small discounts every year.

So at $500,000:
Initial costs for license, title, etc: $50,000
Annual costs are around $2,500


Is this normal for all states? Where is the cheapest state to register your boat out of? What other annual costs besides insurance should I budget for (other than taking it out on the hard, maintenance, etc.)? Any good ideas for cost savings other than "buy something besides a boat?"

Thank in advance.

[Unicorn Dreams]

In Texas
6% sales tax
$150 registration per year
$0 registration per year for my boat because of age

[rowingdude]

Take a gander at Arkansas, Florida (I think they're pretty reasonable), South Carolina and Delaware.

[sledjockey]

I will google those states. Most states I have looked at thus far don't have all their prices posted.

Thank you for the responses so far. This really helps.

[osirissail]

It matters where you are going to keep the boat. If you register the boat in Delaware, but keep it in Washington State you can get into a heap of tax troubles. Same with most other States. Each State will want its "pound of flesh" if you keep the boat in their jurisdiction for extended periods of time.
- - The only way to avoid the problem is to keep the boat moving from one State to another within each States requirements for "transient" boats. This is a serious amount of inconvenience unless you are planning to actually cruise and move from one place to another regularly.

[maxingout]

Originally Posted by sledjockey

I did a search (or 12) before I posted, but couldn't find what I was looking for. I am sorry (in advance) if this has already been covered. If it has, I will play the "NewB" card.......


I went down to the DMV to start looking at annual costs for licensing and registering a boat. To do this I picked a couple online, printed the information, and proceeded to the local WA state DMV. It appears that the original price at purchase is going to be used to for the excise taxes, original licensing, etc., at around 10% of the purchase price. Annual charges are around .5% of that price with some small discounts every year.

So at $500,000:
Initial costs for license, title, etc: $50,000
Annual costs are around $2,500


Is this normal for all states? Where is the cheapest state to register your boat out of? What other annual costs besides insurance should I budget for (other than taking it out on the hard, maintenance, etc.)? Any good ideas for cost savings other than "buy something besides a boat?"

Thank in advance.

That's a lot of money. I would seriously consider documenting it offshore if you are going cruising.

[sledjockey]

My wife and I are very tired of "the rat race" and are using the idea of cruising/sailboat live-aboard life as a way to do an early "semi-retirement." Transient living is definitely compatible (and fairly in pace) with the lifestyle we wish to transition to, so the offshore registration idea or registering in the cheapest/easiest state to deal with are possible.

We are still several years out, but are trying to plan enough in advance that we can take advantage of real estate prices if we have to. We do plan on buying something like a small parcel of land with a metal building on it for storage, having a place to go if we have to, residency for hunting, etc.

Having a plan to avoid as many surprise expenses is a bit ingrained into my very soul. Too much time working with the Marine Corps? In need of an enema? Probably one of the three......