North Carolina Live Aboard Personal Property Tax

[R&B]

Ok looking for advice on livingaboard in North Carolina. looking to buy a slip to live at and we hear about this "personal Property tax" can anyone give me the low down on this.

[delmarrey]

In some states it's a personal property tax, other states it's a luxury tax. No matter where you go, there you are.

Ever played the game Monopoly?

[R&B]

Thanks I do realize this but considering that I already payed taxes on the boat in another state, then i would have to pay a yearly % on the value sounds nuts. I was wondering if there is a different rate if your boat is a primary residence. i think its time to float away and give our wonderful government the one finger salute!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[ub1]

i believe documented boats may be exempt.

[GeoPowers]

Originally Posted by R&B

Ok looking for advice on livingaboard in North Carolina. looking to buy a slip to live at and we hear about this "personal Property tax" can anyone give me the low down on this.

When we had our Cal 20 tied up at the marina, we had to pay tax for both the county and city....and we weren't even in the city limits! I forgot what term they used, but it was something like "city proper".

I guess they figure if you can afford a luxury yacht such as a Cal 20 with no motor, head, or cushions, then you are clearly in the status elite and should be taxed more.

[Capt Phil]

Try buying and owning a boat in Kalifornia if you really want to feel screwed! Capt Phil

[Hud3]

Personal property taxes are generally levied on specific types of property (vehicles, boats, etc.) by the county government in which the property is kept. Personal Property Taxes are different from Property Taxes, Sales Taxes,Registration Fees, or Use Taxes.

When I lived in Virginia, I paid personal property taxes on my boat at a rate close to 1% of the assessed value. I legally avoided paying property taxes in years in which the boat was outside the county boundaries for more than one half of the year. I had to prove that fact to the county tax commissioner with receipts and other evidence.

North Carolina may have the same provisions, or could be different. The only way to be certain you have the latest, most accurate information is to contact the county tax commissioner of the county in which you're planning to keep your boat. By the way, the tax rates vary considerably from county to county.

[Capt Phil]

I'm glad to hear that you managed to legally avoid your taxes in Virginia, Hud. I wasn't so lucky in San Diego when I left for almost 2 years to Mexico, they still charged me County taxes. When I showed them the receipts from marinas and other various marine vendors over the two year period from Mexico, they just laughed and said pay the tax because it will cost you more in attorneys fees to go to court to try and win. Great attitude, I won't even visit Kalifornia now! Additionally, the California Franchise Tax Board tried to force me to pay sales tax on the purchase of a boat in Washington State even though I kept the boat in Canada for nearly 6 months prior to bringing her down the coast. Once again, I had to produce receipts from my Canadian stay which took an extra trip back to the PNW to accumulate proof that I was actually there. Word to the wise wherever you are, keep receipts of ALL expenditures. The ships log and dated photographs are also helpful. With the wonderful management of state finances across the country these days, tax authorities everywhere are going to be extra vigilant and persistent in collecting what they believe they are due. Capt Phil

[KillerBoo]

OMG, And I thougt SWEDEN was hell on earth when it comes to taxes...

[Andrew A]

From my experience, if you have a boat in a slip in North Carolina you are assessed for personnel property tax for the county where the slip property is located. The property tax is assessed even though one is not a resident in that county. The marina sends the boat owner of record information to the county tax office and they render a most welcomed tax bill <insert sarcasim>

Property Tax Rates and Latest Year of Revaluation

[Captain Bill]

Take it from someone who lives there. You will pay personal property tax on your boat in NC. If you live in the city limits you will pay city as well as county taxes. You will also pay real estate taxes on your slip. The good news, if you buy your boat from an individual and not a dealer( a yacht broker is not a dealer) you will not have to pay sales or use taxes. In NC sales and use taxes are only applied to boats purchased "at Retail". Of course if you take it to another state you get no credit for your property tax bill on their use taxes. As the boat is a depreciating asset your taxes on the boat will go down a little every year. If your vessel is documented you are not required to register it, however if you take it to another state, they do not recognize NC law and will require you to register the boat in their state if you don't register it in NC.

[CaptainBW]

Originally Posted by Captain Bill

The good news, if you buy your boat from an individual and not a dealer( a yacht broker is not a dealer) you will not have to pay sales or use taxes. In NC sales and use taxes are only applied to boats purchased "at Retail".

So does "at retail" mean "not previously titled"? or - another way to ask...what situation would dictate that purchasing a used boat is taxable?

[1Sunseeker]

OK this seems to be a legal problem. I cannot nor do I give legal advice. But it is my understanding that you are required to pay taxes. And some taxes should be paid. OK but what happens if you don't? Again it is my understanding a lien may be filed against your boat, for nonpayment. So? The lien is filed in the state/county where you live and maybe where the boat is. When you get ready to sell you could go next door to another county/state and sell you boat. No lien there.


You may or may not run into an authority who will give you a piece of paper saying you must go to court or bla, bla, bla.


OK, if you ignore these pieces of paper long enough will an authority come and chain your boat to the dock? (The marina will for non payment of rent.) But you have moved. Will they seize your boat, or your home such as it is, without legal authority? The IRS may, but do they have the authority or do they just seize your boat/home, without court action and you have to prove they can't? Do they even know where your boat is unless you tell them?


In my humble opinion it sort of depends on your situation. If you have a permanent/regular job, a Real Estate Home, a wife and kids and a fear of authorities you will probably sleep better if you just pay what ever the rules are and mutter in your beer.


Or if you live mostly on the hook, are a bit of an outlaw, and can move from WA to Oregon, Klifornia, Alaska, BC or what the hell too Las Vegas go for it. They all have water in which to float your boat. They also have places you have never been and people you have never met.


I don't think those pieces of paper will follow you. If so it will take a while since you don't leave forwarding addresses, your ID is your passport and since you don't have a car why change your drivers license?


I am not suggesting anything at all here, but just think about it. Pay the ones that support the boating industry and let the General Fund take care of himself. A lot of our taxes go to this General Fund guy. Who the hell is this General Fund guy anyway?


So there is my opinion, have a Merry Christmas, I have to get back to packing up for a move down South. It seems people may be looking for me. 1Sunseeker

[john61ct]

It's exactly the same concept as property tax on a car, or land.

Not based on your tax-domicile location, based on where the property is located. The average American household spends over $2K on real estate property taxes, and nearly $450 on vehicle property taxes, per year.

In the case of movable property, if this is a big issue for you, put your property in a place that doesn't charge much tax.

If you "have to" be in a high-tax location, then suck it up and pay.