Use taxes in Georgia

[truckman]

I will be storing my cat for 7 months until retiring in Georgia and have been told by Georgia tax folks that I will be required to register the boat after 90 days in the state. I have now problem with that one . I am not a resident of Georgia and won't be sailing it out of the marina and am unsure about use taxes. Some marinas have said that no one comes by to check on boats in Georgia or when they do come around every few years and ask for addresses of boats in the marina the marina staff decline due to privacy issues and the tax man goes on his way. This seems very odd to me but have heard it from two different marinas. Does anyone have any info on this. When I move aboard we will stay mobile and not stop anywhere to incur taxes. I have spoken to clerks in the accessors office and they don't seem to know the rules either.


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[a64pilot]

Being a Ga resident, I can tell you your almost certain to trip property tax by registering a boat in Ga. and those taxes are significant. Last boat I made the mistake of registering it in Ga. as I'm a resident and thought that was what you should do.
It never came to Ga., was always kept on Federal property in Fl on a Military base and I proved that with the slip rental agreement. Didn't matter, still had to pay Ga property tax, even though boat was never in state.
I think your crazy to keep it in Ga., put it in Fl.


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[Nicholson58]

In most states, you are invisible on the hard in a yard. We were doing restoration on our un-seaworthy hurricane recovery boat for 3 years - paid up on launch here where we live. In most states, you need to pay sales tax as residents on a boat you buy, just like cars. There is often a water use tax if you live there or stay beyond a time limit. If you own a boat as a tourist, just like a car, you do not pay sales tax or license fees. Imagine having to buy a plate & pay taxes in every state as you drive I-75. We were told we could launch & get the heck out of state and never pay. In a yard, you are not using - no use tax. Even Florida permits you to buy in Florida and prove you live outside the state and they give you fair time to remove the vessel from the state.

Presently in Michigan; 6% sales tax on a boat you buy; water use sticker based on boat length. For us 448 bucks/3-years. Ironically, the logic for higher rates for longer boats is due to the increased wear & tear on the launch facilities. - Never mind that there is not a boat launch in the state where I can get within 100 yards. There are state docks but EVERYONE pays to use these - by the foot.

In this state, the only scrutiny your vessel will receive is on the water to verify your water use sticker is current.

[a64pilot]

trukman,
What is your legal resident state?


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[truckman]

My state of legal residence is Washington and will remain in retirement as we have no state income tax. I was told that Georgia does not charge sales tax on casual sales and thus my only concern is use tax.
I bought the boat in NC which does not charge sales tax on used boats sold in a private sale.


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[skipmac]

Originally Posted by truckman

My state of legal residence is Washington and will remain in retirement as we have no state income tax. I was told that Georgia does not charge sales tax on casual sales and thus my only concern is use tax.
I bought the boat in NC which does not charge sales tax on used boats sold in a private sale.


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Sales tax, use tax. Different names for essentially the same thing and bite out of your wallet is the same. GA will want 6% tax on what you pay for the boat. This one is hard to beat since there are only a couple of states I know that don't charge this tax. RI is one.

I used to live in GA and registered a boat there but kept it in Florida. Every year GA billed me for annual ad valorem tax. Been a while and don't remember exactly what it was but was not small.

I agree with A64. FL is a much better option. No personal income tax, no annual tax on personal property but you will have to deal with the sales tax unless you can qualify for a loophole.

[Moody46CC]

It almost does not matter where you pay sales tax if you have to register the boat in a state. If state registration is required, state officials will ask to see proof of sales tax and will demand the difference if what you paid is less than theirs or their "use" tax. The only way around this in a few cases is federal documentation. The USCG does not care about sales tax. Pay the documentation fee and the boat is documented. In many states that is sufficient. State registration not required, so no sales tax in that state. But the local jurisdiction will always want proerpty tax. And some states demand registration regardless whether the boat is documented. IF that is the case, they will want sales tax and the registration fees.

[skipmac]

I could be wrong but to the best of my knowledge, every state on the US east coast will require you to register the boat in the state if you are there longer than 90 days, regardless of the USCG documentation status and regardless of your official state of residence.

[Moody46CC]

A boat cannot be documented and registered in VA. One or the other.

[skipmac]

Originally Posted by Moody46CC

A boat cannot be documented and registered in VA. One or the other.

OK, then that's one exception. Not the case in FL, GA, RI for certain and pretty sure it's the case in MA, CT, SC and would make a small wager on NJ, NC, DE. NY or ME don't know.

[LeaseOnLife]

Originally Posted by Moody46CC

A boat cannot be documented and registered in VA. One or the other.

Not quite correct...

You cannot title a boat while documented. But you may register the boat while documented:

Virginia Watercraft Owner's Guide

If Documented with the U.S. Coast Guard (USCG) and being changed to state registration:the Certificate of Documentation, a copy of the signed bill of sale, and either a Letter of Deletion from the USCG or the Abstract of Title (with proof of lien release in the documented owner's name). Note: Watercraft cannot be documented by the USCG and titled at the same time. The owner must choose between documentation or titling. While a documented vessel may not be titled, it may be registered at the owner's discretion should a registration decal be desired to show proof that sales tax was paid. The registration decals may be useful if the watercraft is operated in other states that require a registration decal or other proof that sales tax was paid.

[skipmac]

Originally Posted by LeaseOnLife

You cannot title a boat while documented. But you may register the boat while documented:

Which is the case in the other east coast states. Registration is required, state title and USCG documentation is not allowed.

[LeaseOnLife]

Originally Posted by skipmac

Which is the case in the other east coast states. Registration is required, state title and USCG documentation is not allowed.

yup, because the title or the documentation is a proof of ownership (w/o liens for example)

[Phantoms]

This is unfortunate, but the State of GA has a personal property tax on almost everything you own here, resident or not. This applies after $7500 of total (every piece of personal property you own added together) personal property. Ridiculous, but that's GA for you.

§ 48-5-3. Taxable property


All real property including, but not limited to, leaseholds, interests less than fee, and all personal property shall be liable to taxation and shall be taxed, except as otherwise provided by law. Liability of property for taxation shall not be affected by the individual or corporate character of the property owner or by the resident or nonresident status of the property owner.

and

§ 48-5-42.1. Personal property tax exemption for property valued at $7,500.00 or less


(a) It is the intent of this Code section to exempt from the payment of ad valorem taxation certain tangible personal property on which the tax due does not exceed the reasonable cost of administering and collecting the tax.

(b) All tangible personal property of a taxpayer, except motor vehicles, trailers, and mobile homes, shall be exempt from all ad valorem taxation if the actual fair market value of the total amount of taxable tangible personal property owned by the taxpayer within the county, as determined by the board of tax assessors, does not exceed $7,500.00.

[FSMike]

Originally Posted by skipmac

Sales tax, use tax. Different names for essentially the same thing and bite out of your wallet is the same. GA will want 6% tax on what you pay for the boat. ----

It's been quite a while since I lived in Georgia, but when I did Georgia did not charge a sales or use tax on the sale of motor vehicles (or vessels) between individuals.
Ad valorem tax is, of course, a different matter, and normally a much smaller amount than sales or use tax.