use tax and cruisers license in TX

[vandenbrule]

Hello Mrs or Mr Campbell

You are right; there is a clear statement in Florida on an exemption to Use tax for foreign flagged vessels or vessels in Florida with a Cruisers License. The state of Texas does not recognize a cruisers license (as per the TDPW), so they in essence put state law over federal law. My conclusion thus far is that you have to pay Use tax in any event where you stay in TX longer than 90 days. I believe that CBP in Texas follows the federal guidance and that they do recognize the Cruisers License.

[s/v Jedi]

Wrong.

The cruising permit is federal and free. What you pay for is vessel clearance in the port of entry. This is what you would have to pay in every port without a cruising permit.

Also, a state can not overrule this permit as long as they are part of the USA. See the passage in the attachment.

[s/v Jedi]

Of-course I hit send too quick. The Texas officials are correct though for the case of the OP which is a Texas resident, in which case he needs to pay use tax like any other Texas resident.

A state can tax her residents, not visiting foreigners. The cruising permit is not a way to avoid paying tax.

[GreenWave]

Great explanation and clarity. Thanks Jedi.

[Dsanduril]

The CBP federal cruising permit doesn't exempt you from all local fees, only from the types of fees listed on the permit. Not familiar with TX, but the State of Washington, having a lot of Canadian visitors, long ago got very specific:

Foreign nonresidents
Foreign nonresidents are exempt from registration requirements for the first 60 days of use within 12 continuous months. RCW 88.02.570(4).

Foreign nonresidents can extend their registration exempt stay if, before the 61st day of use here, they purchase a vessel visitor permit from the Department of Licensing. This permit is valid as long as the vessel remains currently registered or numbered under the laws of a country other than the United States or the United States customs service cruising license remains valid. RCW 88.02.570(4) and RCW 88.02.610.

Foreign nonresident individuals are also exempt from registering their vessels (of 30 feet or longer) for a one-year period if they purchase a vessel use permit. The use permit must be purchased at the time of purchase of the vessel or within 14 days of first entering the state with the vessel. RCW 88.02.570(13) and RCW 88.02.620.

If you own your foreign-flagged boat as an individual the fee is not too onerous, USD25. However, if you own your boat as a company, partnership, or anything other than as a "natural person" the fees start at USD25/foot for a six-month permit.

The bottom line, in WA, if you want to stay more than 60 days you have to purchase a state "cruising license" in addition to your federal cruising permit.