Ideal state for documentation

[ssanzone]

i am ready (overdue) to register this boat and and heard a rumor that there are certain states that are better others.

I cant find info that supports that on here or the internet.

I have legal residence in MA, VT, TX and CA.

anyone have any insight or a lead on where i can do more research?

-steve

[F51]

Documentation is with the US Coast Guard. Registration is a state issue. As a general rule the state where you keep the boat will require it to be registered there.

[Greenhand]

CA does not require state registration on top of documentation. However, if your boat is in CA, it will be subject to property tax. Even our little 18' is subject to property tax.

[ssanzone]

Originally Posted by F51

Documentation is with the US Coast Guard. Registration is a state issue. As a general rule the state where you keep the boat will require it to be registered there.

sorry... just too many words in my brain...

i am asking about documentation (not registration).

any benefit to documenting with 1 hailing port vs another?

-steve

[sandy stone]

As far as documentation is concerned, the hailing port is largely a formality - perhaps to distinguish between boats with the same name? However I seem to recall a thread where someone based in Washington gave their boat a hailing port in California, and that state picked up on it and came after them for taxes.

[ssanzone]

after more googling i found a threat on thehulltruth.com on this subject and it is a tax thing with far too many loop holes to make it worth any extra effort.


-steve

[delmarrey]

Originally Posted by Greenhand

CA does not require state registration on top of documentation. However, if your boat is in CA, it will be subject to property tax. Even our little 18' is subject to property tax.

Not if your not a resident of CA.

Every state has it's own rule. In Wa, even if documented, you still have to pay registration fees and display the sticker w/o numbers.

[Greenhand]

Originally Posted by delmarrey

Not if your not a resident of CA.



Every state has it's own rule. In Wa, even if documented, you still have to pay registration fees and display the sticker w/o numbers.

The OP said that he was a resident of CA


Sent from my iPad using Cruisers Sailing Forum

[hellosailor]

There's this thing called the internet? And you'll find that every one of those states has what they call a "web site" on the internet, with inks to their motor vehicle, sales tax, and resident tax laws on it. That's where you want to do research.

If you have residences in all four states, all four might come after you. If you have a driver's license and voter's registration in one state? That's arguably the one where the boat should be registered, although MOST states will require a boat to be registered in-state if they actually are present in that state for 90 consecutive days. (Some more, some less, some 183 days in any year, consecutive or not, etc.)

So...while you're looking at web sites, figure out where the boat will actually be. Since the 1980's, most state tax departments have been pretty good about getting their piece of the pie, often by serving you with a nastygram about "taxes, penalty and interest" that they think are due if you've been too clever.

[sailorboy1]

not required to register a documented boat in MA

[denverd0n]

Originally Posted by ssanzone

any benefit to documenting with 1 hailing port vs another?

I have heard rumors that, if you use a California location as your hailing port, then the state of California may try to get property taxes out of you. If the boat is not actually spending significant time in California then it is merely a matter of providing documentation to that effect, in order to avoid the taxes. But that is an additional headache that I, personally, would want to avoid.

As far as the Coast Guard is concerned, your hailing port makes absolutely no difference at all. The boat doesn't have to ever have been there. You don't have to ever have been there. You can pick a place that is completely land-locked and 1,000 miles away from the nearest water, if you want.

[ssanzone]

the taxes are more around sales and use.

which most of use and relate to sales and excise tax on cars... you pay taxes where you buy it and annually where it is registered.

while i gave up on the research when i got the info i needed, what i did learn was based on your hailing port, individual states, those that have use tax, will hit us for use tax.

sales and use tax rates by state can be found here: State Boating Information Home - Government Affairs - BoatUS

also applicable is luxury tax which seems to be a CA thing and have not got my head around yet.

i kicked the question to my tax attorney as i vote and pay personal taxes out of VT and the business is incorporated in MA.

personally i feel 'funny' about having a tiny town in the vermont mountains with only a small lake on my boat as it's hailing port.

-steve

[zeehag]

california has NO luxury tax and NO use tax.
there IS an equalization tax which is essentially SALES tax.
they feel we should have to pay sales tax on our purchases just like car buyers do. ok...
HOWEVER, if you remove said water borne purchase form kali waters within 30 days you are exempt and if you buy offshore and stay out of kali for 1 year you are also exempt. (was why gods made ensenada)
and property tax is county by county. i didnt have to pay property tax in san diego until i had something valued at over 10,000 usd. and you get a 7000 usd living aboard allowance, so you are only taxed for property of a 3000 usd value, if was 10,000 assessment...

omy what one learns when one listens to one who has experience with this. and still does, actually. i still own my ericson. it is in san diego.

[MarkSF]

Originally Posted by zeehag

california has NO luxury tax and NO use tax.
t

California doesn't see to agree with you :

California Use Tax Information - State Board of Equalization

[Andrew B.]

Delaware is noted as a "non-title" state, registration only.
It is supposedly the best state to register a yacht as it is a "no-tax" state.
Many owners also do LLC's, etc.

offshoregate.com is the one I will use.

MarineTitle.com

yachtregistration.net

In my home state of Indiana I believe there is just a small($15) fee for a title.
No property taxes that I am aware of on boats, cars, etc..

They collect several different taxes on registrations. Sales, excise, users, and how many
pimples you have on your azz.