HELP! Need advice on US east coast tax laws...

[cottonsail]

Register it in Rhode Island. No sales tax nor residency requirement.

[Telemark43]

Originally Posted by 3Eagles

I have a unique problem that I cannot seem to find the answer to.

I live in California and am buying a catamaran in Maryland that will be registered with the USCG to my California address. I plan to put the boat in the water next May, and within 30 days, sail it to Massachusetts where I will visit family before departing on a world cruise in October. I'm not a tax evader, but I would like to avoid paying the 5% Mass use/sales tax as I intend to use the boat elsewhere during my world cruise.

So, here's my question. If I don't pay any state's use/sales tax and keep the boat in Massachusetts for 59 days, how long must I cruise out of state before being allowed back into Massachusetts waters? Can I stay in Mass for 59 days, leave for a week to Rhode Island and return for another 59 days, or am I asking for trouble? I hear the Mass Harbor Patrol folks don't mess around.

And less serious, should I be worried that Maryland might also want tax, given I am buying the boat there and storing it on the hard for several months before using it?

Thanks all.

For the heavy money, the initial sales tax, you need to check out both Delaware and Rhode Island. Both states do not have an initial sales tax. Be cautious, because if you stay in 'sales tax' state afterwards for any length of time, the sales tax state can determine you have established residency, and if you haven't previously paid an initial sales tax to a previous state, the sales tax state can come after you for the initial sales tax...after the fact of previous sale. The revenue agents in Maryland come to the dock early in the year and take pictures to document how long the boat has been in Maryland to establish residency. Maryland establishes residency in 90 days. I've watched them...
Rhode Island has no initial sales tax, and no property tax. I strongly suggest you 'register' your home port in Rhode Island. California is rife with the state trying to collect taxes they consider avoided by residents... so your vessel should not be registered in California !!
My best advice. NOT a legal opinion. the money is serious so check it out yourself.

[rodgoult]

I had a boat on the hard in MD for several years after I moved out of State. As it was not in the water no registration was required - I asked them when I laid it up as it had been registered for some time.
Then when I was ready to bring it North I asked again about Registration and was told no need if I was on the move to a new location.
Unless the rules have changed drastically, you are OK with MD. But ask them - they are a very helpful bunch!
MA are also very helpful. Call them and ask. But also remember there may well be harbor dues in the port you park in while visiting MA; my home port of Newburyport charges a fee for boats living here, so I suspect a long visit might attract a fee as well! Worth it - we get free pump-outs!!