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Old 09-05-2018, 07:37   #61
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Re: LLC,s Best state for sailboat ownership.

Originally Posted by Nariel View Post
I have a very novice question here. How is the tax/registration checked and monitored?

I am envisioning a little tax man in a cheap suit with briefcase, bald spot, and bad glasses riding around in a dinghy and stopping to knock on the stern.

But seriously, can someone tell me how this is monitored and enforced in most states? I am curious if you are coast guard documented and cruising between states and staying under the appropriate visiting guidelines (ex: 60-90 days or less) what documentation is typically requested and by whom. Thanks for helping a newb understand!
Some states use the marina owners and managers as their information source. All they have to do is add your out of state registration to a database, if they record when you arrive and another Marina in the state reports you 61 days later, you will get a tax bill for use tax.
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Old 09-05-2018, 10:55   #62

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Re: LLC,s Best state for sailboat ownership.

It is also worth noting that in some states, the requirement to register, title, and pay taxes (AFAIK USE TAX not SALES TAX because there has been no sale, no jurisdiction, to levy sales tax unless the boat was sold in that state) varies depending on whether the boat is spending CONTIGUOUS DAYS (sequential) or CALENDAR DAYS in a state. In some states, if you stay there for 183 sequential days within any single calendar year--tax is due. In other states, 183 sequential days, even if they split over two calendar years--tax is due.

In a radical accident of rationality, in NYS, you only have to register a boat if it is "on the navigable waterways" actually IN THE WATER for more than 90 sequential days. Show a receipt that it was on dry land for storage or repair, or show a fuel receipt confirming you hopped across to NJ or CT for some reason, and your 90 day clock resets. Again and again.

You have to either know where you are going, or be a vagrant and just sneak on through. The tax men are damned clever. And if you want to stay in a marina on anything more than a transient basis? Odds are the marina either is already required, or will soon be required, to send a list of all "out of town boats with long term contracts" to their tax men.

And their presumption is always "guilty until proven innocent".
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