California property and use tax on foreign flagged vessels

[earthbm]

Florida Revenue explicitly writes that

foreign-flagged vessels or boats holding a valid “License to Cruise in the Waters of the United States” issued by the United States Customs Service pursuant to 19 Code of Federal Regulations 4.94 are not subject to Florida use tax.

The property tax issue in less clear to me but I was verbally told by two owners that they did nt pay any FL property tax (foreign flag vessels).


I can't find any similar language about California. I've seen some foreign flagged boats in Newport Beach (Marshal Islands, BVI). Does anyone have any first hand knowledge of whether they are paying property tax (or paid use tax at purchase)?

[letsgetsailing3]

Florida doesn't have property tax on boats.

Only sales tax and use tax. So a little bit of a different concept.

But if you've removed a boat from the state of California, then I would think you wouldn't have property tax in that state.

If you keep a boat in California, you probably owe property tax, regardless of where it's flagged. If you buy one there, you owe sales tax.

[sail sfbay]

Originally Posted by earthbm

...........Does anyone have any first hand knowledge of whether they are paying property tax (or paid use tax at purchase)?

Paid sales tax (at the county sales tax rate where I purchased my boat) last year to the California Revenue Service and pay personal property tax to the county where the boat is berthed ANNUALLY. All the marinas report to the county who is berthed in their marina otherwise if you store the boat in a garage you self report. Either way you get billed personal property tax.

[Calif.Ted]

If they bought the boat in California they paid (or owe) use tax, if the boat is berthed in California at 12:01 AM on January 1 the owner of record will receive a tax lien for unsecured property tax at the rate for the county where it is located.
https://www.boe.ca.gov/proptaxes/pdf/ah576.pdf

[fabgo]

You have to pay both property and use tax unless you have owned and used the boat for 12+ months outside California before you bring it in, in which case you may not owe use tax.