Tax question

[UDIU]

Hi!
Wondering: Is used sailboats prices published in websites like "yacht world" that are being sold in the us are including tax or not.
Thanks.

[sailingabe41ds]

No...the US does not have a national sales tax like the VAT tax in Europe. The sales tax that you pay is determined by which county/or city you live in within your state of residence. That is, I may by a boat in Florida...but if I live in California and plan to bring the boat to California, I pay the California tax for that particular county. In the US there are states without any sales tax ...and there are states that you can pay as much a 11%. If you are a foreign buyer you do not pay the sales tax for that state...unless you are keeping the boat in that state.

It would be impossible to list the tax on the boat because it all depends where you live and where you are going to keep the boat.

To add to the confusion....in some states if you buy a boat and keep it out of that state for a year (varies among states) or say keep it in Canada or Mexico...and bring the boat back into that state after that year, you can avoid paying sales tax.
Hope that helps...

Abe

[S/V Illusion]

Originally Posted by UDIU

Hi!
Wondering: Is used sailboats prices published in websites like "yacht world" that are being sold in the us are including tax or not.
Thanks.

no. I dont know why this web site wont allow one word answers but that one word should suffice

[sailingabe41ds]

I guess you can answer....no no no no no no no no no no no no no

[UDIU]

Thanks very much Abe!
A fully and satisfied answer is always better then a "one word answer"
That's the exact info' I needed.
Thanks again.

[Boatguy30]

Actually it depends in that you’ll likely see many larger yachts for sale “not in US waters” however they very much are for sale in Ft Lauderdale, Newport, etc. these have not had the very minimal 1.5% US duty (tax) paid. As others have said, state taxes and effectiveness in collecting varies widely by state.

[valhalla360]

A little more info on your citizenship and residency would be handy.

If you are from Zimbabwe and sail in under a valid visa for a month, you won't have any tax implications for a short visit if you take the boat when you leave.

If you are have residency in the US, you like are on the hook for state sales tax in your home state if the boat comes into that state (if it never goes into the state you reside in, you can sometimes avoid it but it gets complicated.)

If you are bringing a boat into the country with the intent of it being permanently in the US, there is likely an federal import tax. But if you buy a boat already in the US, you likely will have to pay state sales tax (even if someone else already paid it on the original purchase) but there won't be an import tax.

It gets really situation specific, so if you are comfortable sharing details, you will get much better answers.

[UDIU]

Hi!
many thanks for your answer.
I asked that question for two reasons:
1) i am not a us residence or citizen but I am looking for a Hunter and found one in my country, I am trying to figure if the price I am offering is reasonable comparing to the price published.
the price indeed depends on various factors but it will give me the general idea.
2)if I won't find a Hunter in my country or in Europe I'll look for one in the us, so the us tax issue is something I'd like to understand.
Thanks again.
Udiu

[valhalla360]

Originally Posted by UDIU

Hi!
many thanks for your answer.
I asked that question for two reasons:
1) i am not a us residence or citizen but I am looking for a Hunter and found one in my country, I am trying to figure if the price I am offering is reasonable comparing to the price published.
the price indeed depends on various factors but it will give me the general idea.
2)if I won't find a Hunter in my country or in Europe I'll look for one in the us, so the us tax issue is something I'd like to understand.
Thanks again.
Udiu

If you buy, register in your home country and immediately leave the US, there likely won't be any tax implications.

Taxes probably will have only a small impact trying to estimate what the value of an EU boat is worth.

[mvweebles]

Originally Posted by valhalla360

If you buy, register in your home country and immediately leave the US, there likely won't be any tax implications.

Taxes probably will have only a small impact trying to estimate what the value of an EU boat is worth.

I think the OP situation is comparing a boat purchased in his home country where tax has already been paid vs buying it in US and importing into his home country. Many EU vessels are advertised as "tax paid" so to keep apples to apples comparison, he needs to adjust for taxes.

In the US, not all states have sales tax (Oregon, for example has none). States with sales tax have an exemption for assets purchased in that state but moved outside their tax jurisdiction. How that works varies by state but is most applicable to residents of that state seeking to minimize their tax liability by moving the boat out of the state for a required period of time, then bringing it back home as a used vessel. For years, Ensenada MX, 80 miles south of San Diego, was known as the 91-day yacht club, the period of time required to skirt California sales tax. California has since changed the requirements to make them more onerous.

If you purchase a boat in US and export it, you should have no issues with State sales tax - as someone else said, there is no federal sales tax, so state by state only. Of course, you may have tax liability in your home country.

[UDIU]

Hi!
Thanks for your answer.
what I was actually trying to understand is wheter the prices for sailboats in the US which I see at the various brokers web sites such as yacht world for example, includes any tax or not and if not do I have to pay any tax when buying the boat and intending to leave the US.
If I am correct so the answer is that this price does not include any tax.
Thanks again.
UDIU.

[valhalla360]

Originally Posted by UDIU

Hi!
Thanks for your answer.
what I was actually trying to understand is wheter the prices for sailboats in the US which I see at the various brokers web sites such as yacht world for example, includes any tax or not and if not do I have to pay any tax when buying the boat and intending to leave the US.
If I am correct so the answer is that this price does not include any tax.
Thanks again.
UDIU.

Correct. In the US, the listed price does not typically include tax.

Unlike EU VAT which is paid only once (assuming the boat stays in the EU and you keep documentation that it was paid), in the US sales tax is a state level item and generally due every time the boat is sold. There are some rules that must be met but most states have an exception if the boat is to immediately leave the state where there is no sales tax.

Often this includes a short time frame to vacate the state, so if you buy a boat that needs work before heading offshore, take this into consideration. If it takes you 6 months to get ready, you may owe the sales tax.

[UDIU]

Many thanks.
Got it.
🙏