Best state to register a new-to-us boat

[S/V Illusion]

Originally Posted by SailingHarmonie

None of that matters in the least. So much misinformation, and this is a good example.

First, you do not have to register a boat in any state, unless you meet the requirements. Some states do not register boats that are USCG documented ever (like California).

No state really cares where YOU live, it is where the boat stays that matters. Many states have a 60 or 90 day requirement, If the BOAT statys in the state more than that length of time you need to register it THERE. It matter not where YOU live.

You need to check the rules of the state where the boat is, and follow them.

Having a state registration for you USCG documented vessel is NOT universally required, If the state where the boat is requires it, and each state has their own rules, then you have to register it there and pay the taxes due THERE.

Conceivably, you might have to register a boat two, three, or four times in different states in a year. Sorry if that is complicated, but that's the way it is.

You may have missed the part where in OP claims to have no residence or home port. Consequently, it not only matters but it is the only means of supporting a tax base location, particularly in the absence of any other basis.
Parenthetically, it isn’t necessary to replicate sales tax in multiple states as you implied as each recognizes reciprocity by granting credit for tax paid elsewhere.

[SJAxtell]

Originally Posted by S/V Illusion

What does your driver’s license say? The address on your tax returns?

Currently, we live in Kansas so that's what our DL and tax return info says. We just sold a boat that was slipped on a lake in Oklahoma, which was where it was registered (rather than where we live). As we understand it, the boat should be registered wherever it is being used, regardless of what our physical address is. We will probably use a FL address for our DL and tax returns, but we will not be using the boat in FL for any length of time. It is such a conundrum! Thank you.

[Kettlewell]

Parenthetically, it isn’t necessary to replicate sales tax in multiple states as you implied as each recognizes reciprocity by granting credit for tax paid elsewhere.

And, when you start keeping a boat in some new states there is no need to pay sales tax if the boat has been kept elsewhere for a period of time before arriving in the new state, but usually with caveats. By the way, lots of longterm cruisers find Florida works as their permanent home address, and where they register their boat, simply due to no income tax, though things like insurance can be more expensive there. There are some good mail forwarding services like St. Brendan's Isle to help you establish Florida residency. Florida is one of the states that requires you to get a Florida registration even if your boat is CG Documented. Look into their very cheap antique boat registration if your boat is over 30 years old. As some have mentioned, there is no sales tax in RI, but their annual boat registration fee is steep so not worth paying unless you actually do spend time up there. One thing to watch out for down the road is to document where your boat has actually been and keep your marina and storage bills. I lived in one state but kept my boat in another, and my home state tax people made me prove the location of my boat storage. I had to send them a stack of marina bills, etc. to avoid a hefty tax bill. To some tax people you are guilty until you can prove you are innocent.

[denverd0n]

It's really not that complicated, but you do have to do research on every state that you end up spending time in. If you move it out of Florida within 90 days then you do not have to pay sales tax to Florida.

The question then becomes where will you move it next? If you take it out of the U.S. then you won't owe sales tax to any state (you may, however, when you return). If you take it to another state then you need to determine how long you can stay there before you owe sales tax (usually 60 or 90 days, but you must verify for each state). If you need to locate in one place for a substantial period of time (for repairs, for instance) then it might be worth going to a no-tax state for that.

Good luck, whatever you do.

[MicHughV]

As noted above, most any folk buying a boat would like to avoid the associated sales tax, which can be a considerable amount in some cases, but I don't think I've ever heard or known of anyone being successful in this endeavor. Sooner or later some or other circumstance is likely to trip you up.
At the end of the day, as distasteful as it might be, you'd likely sleep easier if you just bit the bullet and pay it.

[smj]

When you buy a boat you should be aware of the extra expenses involved. If you can’t afford the extra expenses then don’t purchase a boat as you won’t be able to afford the upkeep.

[Kettlewell]

As noted above, most any folk buying a boat would like to avoid the associated sales tax, which can be a considerable amount in some cases, but I don't think I've ever heard or known of anyone being successful in this endeavor.

Lots of people do it legally by a) not staying in a state long enough to trigger sales or use tax or b) purchasing in a tax-free state like Rhode Island, keeping it there for several years, then moving it to other states that grandfather in boats purchased X number of years prior or other states with no sales or use tax. However, other taxes may kick in like property tax, excise tax, etc. Of course all the megayachts avoid most U.S. taxes by registering outside the country in ports of convenience, etc.

[MicHughV]

I've purchased several different boats over the years, and with each, the sales tax thing was a difficult pill to swallow.
In each case, I was advised to just cough it up.
I've made it so, that it is just the "full" price of the boat in my head, which makes it an easier pill to swallow.

[walkabout08]

Originally Posted by Jimbo2010

One has little to do with the other.

Boat can be documented in RI a good idea, no tax

you can be domiciled in any other state.

Done all the time, not that I agree with it

Totally agree. Newport RI on your transom will save you a literal boat load of tax.

[Warren149]

Hi I believe if you are Uscg registered you don’t have to display a state of registration ( I may be wrong) so pick Delaware as no sales tax and keep moving to not attract attention …..
I suggest you make sure if you put a hailing port on the transom it Not be some land lock city but an actual port! Looks so stupid and obvious otherwise

[kapnkarl]

USCG documentation for a recreational vessel is,at a minimum, one year. You can opt for multi-year but it is not required.

[Warren149]

Apparently it’s 5 years now from this informative article
About Uscg reg
https://www.marlinmag.com/boats/choi...r%20documented.

[Pandor]

Originally Posted by Warren149

Apparently it’s 5 years now from this informative article
About Uscg reg
https://www.marlinmag.com/boats/choi...r%20documented.

Except that article is incorrect. You have the option to renew from one year to up to five years. I just did it.

[Goodxcharly]

You might choose the state where you are going to sell the boat in the future.

[kapnkarl]

I'm sure it's a good article from a 3rd party. However, the current uscg documentation center fee schedule at their website "dco.uscg.mil" shows 1 year thru 5 year options & applicable fees. I just renewed mine for 2 yrs ($52). Maybe mandatory 5 yr is something they plan to implement in the future. Time will tell