Do NOT keep your boat in North Carolina

[rwidman]

Originally Posted by markpierce

If you have a boat, it's the government's assumption you are rich and can afford the assessed taxes. Hope you can document/support the boat's true value.

Not at all. Taxable personal property includes cars and trucks as well as boats. There is no assumption being made.

[Seymore]

Originally Posted by rwidman

In my case in SC with previous boats, cars, trucks, etc. I have found the tax assessor's office to be very helpful and not at all interested in squeezing the last dime out of my pocket. I suggest calling or visiting them and asking them how to minimize your obligation. Be nice. They don't get to keep the money or even a commission. They are there to help. You may even find that you don't owe any taxes because your boat hasn't been kept in NC long enough.

You'll be telling the tax people what they need to hear.

[rwidman]

Originally Posted by Seymore

You'll be telling the tax people what they need to hear.

I don't know how you intended that comment, but hopefully he will be telling them the truth. The tax people are generally fine until they find out that you are trying to cheat on your taxes. That's when their attitude changes.

[boatpoker]

The marinas pay property taxes and being waterfront, probably a very high rate. Isn't taxing a boat in a slip that has already been taxed, double taxation ?

Just curious, we pay no tax on boats in Canada after initial purchase sales tax. I do know my yacht club pays a couple of hundred thousand a year in property taxes it would seem to be double taxation if I was asked to pay on top of that.

[SFS]

Originally Posted by boatpoker

The marinas pay property taxes and being waterfront, probably a very high rate. Isn't taxing a boat in a slip that has already been taxed, double taxation ?

There is a property tax on the marina property. The boat is different property than the marina, so it is taxed separately.

The inconsistency that I see, and I acknowledge that this supports the notion that we are not getting the whole story, is that the tax folks allegedly said that the OP would owe this tax because he rented the slip, and the tax on the boat would be owed even if it never entered the slip. I just don't get that.

[svlamorocha]

Originally Posted by jcb47769

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.

I believe you got the rate wrong. I understand that the rate is 0.5394% that is close to 1/10th of 5%. See the table posted above.

You don't need to call every county; there are tables out there (as in recent post) that give you property tax rates for every country in a given state.

[rwidman]

Originally Posted by boatpoker

The marinas pay property taxes and being waterfront, probably a very high rate. Isn't taxing a boat in a slip that has already been taxed, double taxation ?

Just curious, we pay no tax on boats in Canada after initial purchase sales tax. I do know my yacht club pays a couple of hundred thousand a year in property taxes it would seem to be double taxation if I was asked to pay on top of that.

No, it is not "double taxation". Just because you keep your car in a garage you pay real estate taxes on doesn't excuse you from paying taxes on the car.

Some states (in the USA) charge a relatively high sales tax on boats and cars 5% -8% when you buy them and that is the end of your tax obligation. Maryland is one such state. Other states limit or cap the sales tax but charge personal property tax on boats and cars. South Carolina is an example. The maximum sales tax on a car or boat is $300 but you are taxed on that car or boat every year.

Governments provide services and must levy taxes to pay for those services. You are going to pay one way or the other.

What's that saying about death and taxes?

[Three Sisters]

Originally Posted by Captain Bill

Something does not quite add up here. The tax rates in Craven county are published on their web site and vary a bit depending on which city and fire district you live in, but the maximum combination of millage rates seems to be about 1.25% and maybe as low as 1% depending on where the slip is located. This is $1000 to $1250 on a boat assessed at $100,000. This is up slightly from when I kept my boat there. It should only approach $5000 on a boat assessed at $400,000 or more. Further it states that taxes are assessed on Jan 1 of each year, the bills sent out in August and due on Sept.1. They are considered past due on Jan. 6 of the following year. Why does the OP have late fees if the taxes are only due starting today. How does the tax collector claim 4 times the legal millage rate? Where was the boat kept before it moved to New Bern less than a year ago? Somehow we are not getting the whole story.

It seems you may have scared the OP away.

[dwallace006]

Hey All!

Just recently dealt with this situation after keeping my boat at Northwest Creek Marina from 9/4/19-3/1/20. My 43' Dufour Sloop was appraised at $100K, which according to Craven County property tax rates came out to be $725.39 (had to look up the online tax record using the information on the letter mailed to me as I did not know the rate, fees, or adjustments made to the appraisal, and there was no other information on the letter other than the appraisal value of the boat, which I think I originally just ball parked for the marina when I landed in the slip).

To the marina's credit, they did explain the tax regulations clearly and gave me a letter explaining the law along with my slip rental contract. To be honest, I kind of just forgot about it. By the time the assessment letter caught up to me this past August in Florida, the appeals period had ended and the appraisal became final.

As suggested a few times in this thread, I got in contact with the tax office in Craven County, was very polite, and just asked for more information and guidance on how I could reduce my tax obligation. They asked me to provide some more information regarding my stay in NC, official registration documents for the vessel, original bill of sail, the state I had my drivers license in, and an official in/out slip from the marina.

A few e-mails later and voila! They told me since my stay was less than 6 months, and I wasn't a NC, or Craven County resident that my vessel was not taxable! Wohoo! Thank you for the suggestions and advice all!

-Capt. Dan

[Boatguy30]

Interesting as a few years ago I left my boat on the hard from October to June in NC. Never heard anything about this.
Maybe out of water doesn't count?
Or maybe some marinas just don't report?

[redneckrob]

Originally Posted by roverhi

5% annual personal property tax on a boat is confiscatory. You are paying the marina's property tax, don't have any kids living on the boat, or any of the other things people should be taxed to support. Hope the politicians appreciate you for paying for their junkets and catered food.

If you go to the Assessor and file a valid appeal with proof of value, you should be able to get the assessment lowered. Did that when I got a high assessment on my boat in Alameda. Sent them a copy of Sales Tax value from when I bought the boat and a description of why I paid what I did for the boat. They lowered the assessed value to what I paid for it and didn't change it for the 4 years the boat was there.

As was already explained in this thread, it's not a tax of 5% of the value of the boat. And the tax isn't based on having kids living of the boat, good grief. States collect taxes based on the value of all matter of things. I don't argue when I pay sales tax on a bag of potatoes chips that the state shouldn't charge it because they didn't provide the potatoes any services, do you?

[Cadence]

Originally Posted by redneckrob

As was already explained in this thread, it's not a tax of 5% of the value of the boat. And the tax isn't based on having kids living of the boat, good grief. States collect taxes based on the value of all matter of things. I don't argue when I pay sales tax on a bag of potatoes chips that the state shouldn't charge it because they didn't provide the potatoes any services, do you?

I believe it is generally counties that collect property taxes at least in SC. If anyone can figure out their system of assessment and capped value assessment in Charleston county let me know. I can recall them walking the docks years age with a clip board to find boats not registered in SC.
I did leave a boat in Fla. for over a year I guess with not getting caught.
Probably luck of the draw.

[Cire Edhor]

Panama, Carribean, Bahamas, South America, Mexico, Costa Rica or Spain, Portugal, Ireland....Expatriate, then repeat as needed....Its the one true value of a sailboat they can't take away mobility......leave...You'll thank me later.

[Dockhead]

Originally Posted by Pilou

Quite frankly I'm sorry for you.

By the way where are those who recently criticized here the boat's taxes in France ? Deafening silence ?

In Northern Europe, boat taxes are zero almost everywhere.


The original buyer does pay VAT on the new boat, like everywhere in the EU. But up here that's considered quite enough and you don't pay tax on subsequent purchase-sale transactions, not do you pay any ad valorem tax.

[mitiempo]

Originally Posted by Dockhead

In Northern Europe, boat taxes are zero almost everywhere.


The original buyer does pay VAT on the new boat, like everywhere in the EU. But up here that's considered quite enough and you don't pay tax on subsequent purchase-sale transactions, not do you pay any ad valorem tax.

Same in Canada. Applicable taxes on purchase only. Even when the boat is federally registered - comparable to US documentation - renewals are forever free.