Is it beneficial to get state registration for world cruising?

[chuckr]

[QUOTE=sailingunity;2237736]Thanks everyone for the replies. We went ahead and registered in Delaware just to be safe, but once we are outside the US we won't be keeping it up. I have never heard anything about USCG reporting home ports to the state, as far as I've read up on so far it can be anywhere, whether or not you or the boat are there. I have not paid sales tax on the boat and don't intend to - since sales tax is meant to support the waterways in the state you reside in and we won't be residing in any one state for more than a few months.[/QUOTE


I am not quite sure I understand this. If you are not keeping the Delaware registration what registration are you going to use? You could have a Delaware homeport and USGC documentation - is that what you mean?

I think half the boats in Turkey have a Delaware homeport and fly a USA flag.

[Island Time O25]

Originally Posted by sailingunity

We are documenting with CG no doubt, I was just wondering if there was some benefit to getting state registration too, since my broker seemed so adamant about it. So I'm hoping I didn't just waste $50, at least if I get stopped in one of the states on the way down from Virginia I can produce some registration, even if it won't matter outside the US.

In most situations when getting stopped by LEOs proof that you have properly filed for CG documentation will suffice. Of course there may always be some harda$$ local water cop giving you hard time about it but as far as CG is concerned you should be OK. Of course this does not apply once you're out of US waters as then you should have your Certificate on board, etc.

The major reason brokers or any one else is thinking of Delaware for registration perhaps has to do with opening a corporation to be the legal owner of the vessel. This is certainly a necessity for owners with means who are protecting their other assets this way. But if you own the boat in your own name, have no significant assets which can be attached in case you are sued in connection with your boat ownership, are a US citizen and plan to document via CG I see no reason to register in Delaware. Besides as far as CG is concerned before they will document you you need to show them proof that the boat was de-registered with the state. Or at least they treat any documented boat as de-registered for their purposes.

When I started thinking of boat ownership back in the 90s I did some research and found out that the states at the time, in their quest for more revenue and control, were beginning to show the proverbial finger to the Federal laws concerning documentation. And since then the Feds kind of acquiesced in this by allowing it to happen. To make the long story short Constitutionally once a vessel is documented it legally becomes "the vessel of the United States" and gets out of ANY state jurisdiction, including taxes, registration (full or partial as in Florida), etc. And this was the traditional and always applicable law up until probably 1970s or 1980s. So with the change of attitudes of the states and subsequent add'l laws and regulations on the state level there was and is a lot of confusion on the issue. For most people it is financially and otherwise impractical and unaffordable to challenge a state which is ignoring or flouting the Federal law and those with means just register somewhere else where it is more convenient for them rather then spend time, $$ and effort fighting it with the state.

How can this happen? Think of the way we as society and our lawmakers including the courts treat different articles and amendments of the Constitution. Some we hold immutable and sacred (1st, 5th), others not so much (2nd, 8th, 10th). Can you imagine for a moment if we treated the 1st as we treat the 2nd by requiring public speakers to first go through a course in "safe speaking", go through FBI or other LE background check, pay the permit fees, obtain a "permit to speak" and lose the right to speak if we were simply accused by a spouse of domestic violence/misbehavior? So in this situation flouting Federal vessel documentation laws by the states is small potatoes in the grand scheme of things.

[Miniyot]

There is one thing that needs to be clarified.
In Florida, there is a difference between registering a boat and titling a boat.

If your boat is CG documented and stays in Florida it does need to be registered but not titled. If it is not CG documented it needs to be registered and titled.

The difference;
Title = proof of ownership.
Registration = yearly use tax. sort of like a tag on a car.

[skipmac]

Originally Posted by Miniyot

There is one thing that needs to be clarified.
In Florida, there is a difference between registering a boat and titling a boat.

If your boat is CG documented and stays in Florida it does need to be registered but not titled. If it is not CG documented it needs to be registered and titled.

The difference;
Title = proof of ownership.
Registration = yearly use tax. sort of like a tag on a car.

Good point to add to the discussion. USCG documentation acts as the proof of ownership as well as the federal "registration" so combines both functions whereas state registration and titling are two separate documents.