use tax and cruisers license in TX

[vandenbrule]

Hello

I am new here and would welcome some advice. I have a yacht that is flagged in The Netherlands and I want to bring it to TX for a while. I know that eg in Florida I could bring it in and sail there for a year using a cruisers permit. No use tax would be levied in FL. I am struggling to find out whether the same applies in TX. Is there anybody who has experience with use tax and cruisers permits in TX?

Thank you

Ben

[GreenWave]

Have you read through the TPWD website? I don't recall seeing anything about cruising permits. If US flagged you would have to pay tax if it is here for greater than 30 days (?) unless you can show you paid tax elsewhere.


<edit> - took a quick peek at the website again and it is devoid of anything speaking to your use case. I would call TPWD or email them.

[vandenbrule]

Thanks Greenwave. I indeed emailed TPWD and their response was that I have to register in TX and give up my registration in The Netherlands. This would mean that going overseas I would not be registered anywhere because I can't register in the US as a non-citizen, would have given up my registration in The Netherlands and have no status with my TX registration (it is not a country ..yet..). So I feel that this can't be the right answer..

[BlackHeron]

That can't be the right answer. I think the person you spoke to via email somehow mistakenly believes The Netherlands is another state in the USA.

Our boat is registered with the US Coast Guard but individual states usually want us to register with them as well if we stay there more than a certain number of days. We have our boat registered in Florida at the moment but we did not have to give up our US Coast Guard registration to do so. The same would be true in Texas.

I can not see why it would be any different for a Netherlands-flagged vessel. Pay your fee and any taxes owed and get your stickers for the year.

You might want to check about your dinghy too. We get more scrutiny in our dinghy going into small towns than we do with the 35-foot sailboat.

[GreenWave]

Ugh. Try reaching out to this person directly at TPWD - Isabell Sims <Isabell.Sims@tpwd.texas.gov>. She was very helpful for my registration needs. I suspect that you would just need to pay the registration fees (not sure about tax).

[vandenbrule]

Thanks Greenwave. I will reach out to her

[s/v Jedi]

You are a visiting, foreign yacht. The cruising permit is issued by the federal government (CBP) and state governments hate it because it denies them taxation of the boat. The federal permit overrules state and local authorities.

The cruising permit is also free.

When you become a permanent resident (green card) while being the owner of the yacht, things change and they got you.

[bobnlesley]

Vandenbruhle: As noted by s/v Jedi, if you're a Netherlands passport holder entering the USA on visitors visa (B1/B2) then you get the cruising permit (good for 12 months) when you first arrive/check-in with the boat and that's good to visit any/all states; chances are that your visa will only allow you six months and you'll need to make a 'meaningful exit' to get the visa renewed - a few weeks back in Holland complies, but a weekend in Mexico won't. Similarly, at the end of 12 months, the boat needs to leave and return to renew; again there's no defined period for being out, but you do need to go elsewhere for a 'meaningful period'.
However, if you're a Texas resident, then there are probably a whole different set of rules covering it.

Oh, we did get charged for our cruising permits - about $30-40 in Florida, but more, perhaps $60-70 in Puerto Rico

[Tin Tin]

Originally Posted by s/v Jedi

You are a visiting, foreign yacht. The cruising permit is issued by the federal government (CBP) and state governments hate it because it denies them taxation of the boat. The federal permit overrules state and local authorities.

The cruising permit is also free.

When you become a permanent resident (green card) while being the owner of the yacht, things change and they got you.

Cruising License is $19.00, so not totally free, and in some ports they only take cash and do not keep change, so you may need to visit a store first to break your $20 note.

[vandenbrule]

Great input. I am a Dutch Citizen and do live in TX and pay tax in the USA for about 14 years on work related visa's. I fear this may complicate matters. The rules appear to be relatively straightforward if you fit in the "standard model". The fact that I can't flag the boat in the USA with the USCG as a non-citizen made me decide to have it registered in The Netherlands

[NPCampbell]

Originally Posted by vandenbrule

Great input. I am a Dutch Citizen and do live in TX and pay tax in the USA for about 14 years on work related visa's. I fear this may complicate matters. The rules appear to be relatively straightforward if you fit in the "standard model". The fact that I can't flag the boat in the USA with the USCG as a non-citizen made me decide to have it registered in The Netherlands

If you're a Texas resident then I think all bets are off. My GUESS is that you will probably be subject to 6.25% use tax just as if you had bought a car out of state regardless of citizenship or where the boat is currently registered. Texas did adopt Florida's $18k cap if that's any consolation.

[sailingforfun]

Originally Posted by NPCampbell

If you're a Texas resident then I think all bets are off. My GUESS is that you will probably be subject to 6.25% use tax just as if you had bought a car out of state regardless of citizenship or where the boat is currently registered. Texas did adopt Florida's $18k cap if that's any consolation.

I'm a Texas resident and had a BVI flagged catamaran. I entered the US via Florida, paid my $12 for the one year cruising permit. After one year you are required to leave the US. You can then return, pay another $12 and get another 1 year cruising permit.

Ancillary to this is we arrived from Cuba. Received all kinds of grief from CBP on arrival. They told me there were no issues with the boat being in Cuba because it was BVI flagged. The problem was with me being an American citizen in Cuba.

Ask a lawyer, but I believe its all about the boat's registration, not your residency.

[George DuBose]

My boat is USCG documented, US-flagged, VAT paid to The Netherlands and have had the Post-Construction Assessment survey to have the boat CE-marked. I have had no problems with any customs or immigration authorities in the EU.

In your case, a state registration doesn't require US citizenship and one can tour the world with just a state registration from a US state. Documenting your vessel only allows the US to confiscate your boat in an emergency (war). Documentation also requires a US consul to give assistance in certain legal situations.

[vandenbrule]

On my inquiries with TPWD I received the following answer:

"Texas does not recognize a Cruisers Permit. As **** stated previously, if the vessel is in Texas for more than 90 consecutive days, titling and registration is required in Texas. If the vessel is USCG documented then only registration is required"

This essentially means that State Law here takes priority over Federal Law which allows cruisers to sail in US waters for 1 year. Remarkable...

To confuse the situation further, CBP on the phone told me that a cruisers permit would be valid without a problem..

I think I will have to keep my boat outside TX

[NPCampbell]

Originally Posted by sailingforfun

I'm a Texas resident and had a BVI flagged catamaran. I entered the US via Florida, paid my $12 for the one year cruising permit. After one year you are required to leave the US. You can then return, pay another $12 and get another 1 year cruising permit.

Ancillary to this is we arrived from Cuba. Received all kinds of grief from CBP on arrival. They told me there were no issues with the boat being in Cuba because it was BVI flagged. The problem was with me being an American citizen in Cuba.

Ask a lawyer, but I believe its all about the boat's registration, not your residency.

I see where Florida has an exclusion for use tax for internationally flagged boats with a cruising permit. However, I wasn't able to find that for Texas. It doesn't mean it doesn't exist, just that my Googling skills may need help.

Here's the tax regulations for Texas: Texas State Taxation