Do NOT keep your boat in North Carolina

[Dockhead]

Originally Posted by rwidman

Have you been in touch with the tax assessor like I suggested? If not, do so. Be nice and they will answer all your questions.

And that is excellent advice, with regard to the immediate question.

[rwidman]

Originally Posted by Dockhead

And that is excellent advice, with regard to the immediate question.

I think the OP is misunderstanding or misstating something here because there would be very few boats kept in NC if this was accurate.

It's all too common to log on to an Internet forum and bitch about something before actually getting the facts. And of course some of the replies are beyond ridiculous.

Years ago, with a previous boat, I paid my personal property taxes the first year. The next year the taxes went up even though the boat was a year older. I called the tax assessor's office and the lady explained to me that while the value had gone down slightly, the millage rate had gone up. I didn't understand that so she explained it to me.

Then she asked me if the boat had sleeping quarters, a head and a stove. I said "yes" and she informed me that it would qualify as a second home at a significant tax discount. She mailed me forms to fill out and return and not only lowered my tax for that year, she refunded the difference from the previous year.

The OP could have saved himself a lot of grief by just calling in the first place.

And the warning "Do NOT keep your boat in North Carolina" is absurd.

[ohdrinkboy]

I've got both of my boats in NC, and pay personal property tax on them. It is a nominal amount, but nothing like 5%. My marina posts a notice every year about personal property taxes. Did a quick lookup and my rate is .82%, and I'm in a high tax county. attached is a link to the schedule of personal property tax.

http://www.dor.state.nc.us/publicati...tytaxrates.pdf

[jcb47769]

Originally Posted by ohdrinkboy

I've got both of my boats in NC, and pay personal property tax on them. It is a nominal amount, but nothing like 5%. My marina posts a notice every year about personal property taxes. Did a quick lookup and my rate is .82%, and I'm in a high tax county. attached is a link to the schedule of personal property tax.

http://www.dor.state.nc.us/publicati...tytaxrates.pdf

This listing looks interesting - I'm trying to reconcile it with the bill I received. I literally have a bill from the assessors office stating the value of the boat is 100k, and a notice to pay 5% of that value annually. I'm not sure how it's possible to be misunderstanding or misstating this info, It's worth noting it appears to be Craven County assessing this tax, not North Carolina. We have talked to the office, (there's a post on page 2 with some info), and no success so far. I'm specifically looking for anyone who has had to pay this tax before and whether there's more info I can use to reduce it. $5000 annually on a boat that was worth 26k ten years ago is not going to work for us. Just to state the facts so far and leave opinions out of it:

1. We have kept our boat in North Carolina for almost 1 year, not living aboard
2. We just got a tax bill from Craven County stating the value of the boat is $100000. (It's worth less than 1/4 that, but I'm not sure how to prove that as I do not have bill of sale)
3. We spoke to the tax assessor and pleaded our case, no success. Burden of proof etc is on us and the tax is not optional. Side note: they said even if we don't have the boat in the slip the whole time, if we rent a slip we have to pay this tax.
4. We spoke to the marina and they said this is normal, people call him all the time "in an uproar" about it
5. I now have to pay $5000/year to store my boat here, which is more than the slip fee.
6. There is very little information available (that I can find) and certainly nobody at the marina mentioned this when we arrived, nor is there any kind of posting or bulletin. I understand this isn't their job, but a warning would have been nice.

I guess the first thing you have to do when you come into a marina is call the local tax assessor's office? Kind of crazy. Suggestions welcome.

[Siberian Sea]

You have the right to challenge this and very often the ones who do have their bill adjusted. Just send them a letter, photos, copy of bill of sale showing it's current value or anything else you can find and I feel confident they will work with you. Taxes indeed suck but a few polite phone calls and a letter or two can really go a long way. Don't blame your marina, they are forced to give this info to the tax man.

[scottydaum]

Sooooo.....not to start a food fight but I just needed to chime in on this.
First the New Bern area is a great place to keep a boat, as there are as stated affordable marinas, and several very protected areas as we are up the Neuse River.
I slipped buy the Tax Folks several years after moving my boat up from Florida. I left the Florida Registration numbers on the boat. I was working on the boat and had not had time to really do any sailing. I had registered the boat in NC but never put the numbers or registration sticker on.
My boat is in Craven County NC and the Tax Folks actually go out and walk the docks to look for boats that may need to be paying taxes. If they suspect a particular boat then the ask the marina for more details.
I am in a marina that is friendly to older boats and ok with "works in progress" but some marinas are not that way and may actually WANT you to move on...lol
My main point is......NC is a wonderful place to keep a boat! If you have tax issues, then do you best to sort them out. The Tax Folks will work with you as best they can. They are generally nice regular folks just doing an unpopular job. It is the South and we are taught to be polite.
However, if you go in the there with a bad attitude, and act like a Jerk.....then you may find out they can be very difficult.
Maybe it would be best to take your boat where you would be more comfortable.
Either way.....best of luck to you........Bless Your Heart.

[guyrj33]

this story reminds me of the sales tax letter we received from the State of Massachusetts about 5 years after we purchased and documented our sailboat. We paid sales tax at the time of purchase. I had a carbon copy of the receipt from the state DOR.
The letter demanded sales tax, interest plus penalties and was timed just after the penalty phase kicked in. Mass state DOR would not accept the carbon copy of their own receipt as proof of payment, luckily the dealer still had the original on file and I was able to resolve the issue.
I think the state took the list of all boats documented 3 years previously and sent out demand letters without checking their own records. One does not forget this type of treatment and this is separate for all arguments about paying for services.

[Cadence]

Originally Posted by jcb47769

We just had an unpleasant surprise. I work abroad on boats for a living, and when I'm away working I keep my boat in New Bern, NC. Cheap marinas and fairly protected. Just got a notice from the State of NC, they decided my boat is worth 100k (laughable, it's a beat up cruiser we bought for a quarter of that), and i need to pay 5% property tax on that value immediately plus late fees, and the same amount every year. Burden of proof is on me to show the boat is worth less than they arbitrarily decided, and the tax adds up to more than our slip fee by a good margin. Apparently the marinas here send the tax office everyone's information? So now I pay 5k/year on a boat worth maybe 25k? Anyone else have experience with this?

Had you considered having a survey done and attaching it form that standpoint.
Get a cheap survey as long it is on a letter head.

[ohdrinkboy]

Sounds like you need an appointment at the county tax office. In NC counties and cities collect property tax....not the state. The state gives them the legal right to set their tax rates (within parameters) and collect.

Gather up boat valuation evidence (your bill of sale), print outs from yachtworld for sisterships, etc. and go have a polite conversation with the tax department. They are usually amicable if you are polite.

[Ericson38]

Originally Posted by scottydaum

Sooooo.....not to start a food fight but I just needed to chime in on this.
First the New Bern area is a great place to keep a boat, as there are as stated affordable marinas, and several very protected areas as we are up the Neuse River.
I slipped buy the Tax Folks several years after moving my boat up from Florida. I left the Florida Registration numbers on the boat. I was working on the boat and had not had time to really do any sailing. I had registered the boat in NC but never put the numbers or registration sticker on.
My boat is in Craven County NC and the Tax Folks actually go out and walk the docks to look for boats that may need to be paying taxes. If they suspect a particular boat then the ask the marina for more details.
I am in a marina that is friendly to older boats and ok with "works in progress" but some marinas are not that way and may actually WANT you to move on...lol
My main point is......NC is a wonderful place to keep a boat! If you have tax issues, then do you best to sort them out. The Tax Folks will work with you as best they can. They are generally nice regular folks just doing an unpopular job. It is the South and we are taught to be polite.
However, if you go in the there with a bad attitude, and act like a Jerk.....then you may find out they can be very difficult.
Maybe it would be best to take your boat where you would be more comfortable.
Either way.....best of luck to you........Bless Your Heart.

You registered the boat in NC but left the expired FLA reg #s on the bow, and the NC county dock walkers couldn't figure that part out, so you didn't pay tax for a couple of years, correct ?

[rwidman]

Originally Posted by Ericson38

You registered the boat in NC but left the expired FLA reg #s on the bow, and the NC county dock walkers couldn't figure that part out, so you didn't pay tax for a couple of years, correct ?

That sounds like an attempt to evade taxes to me.

[scottydaum]

I see where I was not clear about that.
I was not trying to avoid any tax. I actually did not even think about the issue. I was just too laZy to remove the old number and apply the new ones. It was one of those things that was "one the list" after buffing and all that stuff.
I DID settle up with the tax folks, and there was not problem, and now I pay my $70.00 every year.
I live 224 miles form my boat and travel a lot for my work so "the project" progresses painfully slow.

[Dave22q]

Any state property tax will have an appeals process. Use it. Bring evidence of the boat's value: ads for similar boats, signed (best if notarized) statement by local yacht broker, insurance valuation, original bill of sale etc. It needs to be in writing. If they have no basis for their arbitrary valuation they will be compelled to accept yours.

[duefocena]

Originally Posted by jcb47769

In San Diego we had to prove we lived aboard by showing we paid "liveaboard" fee to the marina and the tax was $260/year. For NC I'm unclear if this is a state tax or local, i just have a letter from Craven County Tax assessor with the insanely high boat value and instructions to pay 5% annually as a property tax. Maybe a County tax? I wonder if we also have to pay another 3% use tax as well if that's a state law. So 8k a year now? I guess we will worry about that after we figure this out. I stand by my original post that this is a terrible place to store a boat.

Nobody we spoke to in the marina had gotten a similar bill, lucky us. We aren't living aboard though so our social circle is small. I think they don't leave their boats here year around, at least the people I've talked to.

A Westsail 43 for $25k? I think the issue being ignored is that the valuation of your boat is based on records of sold boats and yours is way under the normal sales value. If you prove why yours is worth so much less than others you will be fine. If you bought it cheap and fixed all of the things that allowed it to be bought so cheaply then you will be taxed on its like value to others.
Love the post on if you would call the fire department if your boat was on fire or 911 if you needed emergency assistance. Who should pay for that luxury?



https://i2.wp.com/svmysticeti.com/wp...to-banner_copy.

[Mr Saturn]

Originally Posted by rwidman

It's not really a "profit". Tax proceeds go to pay for things like fire and police protection, roads, etc.

I see a lot of crappy roads in NC and you will get a bill from the FD for services rendered. Yes it is not a "profit" it is a "pension" for some civil servant or crook in Raleigh.