Reply
 
Thread Tools Search this Thread Display Modes
 
Old 01-31-2019, 01:03 PM   #1
Member
 
City: Shasta
Country: Usa
Join Date: Mar 2018
Posts: 22
Home port choices

I recently bought Georgia Girl hull #16. I also lost everything to the Carr Wild fire in CA, home, business, everything. Rather than rebuild I bought Georgia Girl. Since I have no home anymore I can call home anywhere. Any recommendations as to the cheapest state to register the boat vs state taxes? I have 180 days to sort it before Florida sales tax becomes due. Any advice is greatly appreciated.
__________________
Advertisement

Selidster is offline   Reply With Quote
Old 01-31-2019, 01:07 PM   #2
Guru
 
Fish53's Avatar
 
City: Pitcairn Island
Country: yz
Join Date: Jul 2015
Posts: 549
Check New Hampshire, I'm not sure but my wife thinks they don't have excise tax, we're in Maine and we do.
__________________

Fish53 is offline   Reply With Quote
Old 01-31-2019, 01:33 PM   #3
Guru
 
djmarchand's Avatar
 
City: Litchfield, Ct/Punta Gorda, Fl
Country: USA
Vessel Model: Atlas Pompano 23- outboard
Join Date: Aug 2012
Posts: 4,326
Sales or actually use tax is based on the state where it is docked and where you use it. You just can't pick a state like RI with no sales/use tax and register it there. You will still be hit with Florida sales/use tax if you keep it there.


David
djmarchand is offline   Reply With Quote
Old 01-31-2019, 01:34 PM   #4
TF Site Team
 
Larry M's Avatar
 
City: JAX, FL
Country: USA
Vessel Name: Hobo
Vessel Model: Krogen 42-120
Join Date: Nov 2008
Posts: 7,537
We set up an LLC years ago to purchase a boat while we tried to figure out the exact same thing. We picked Oregon which has no sales tax and was relatively inexpensive to register a boat. I had a room mate from college who lived there and we used his address. Once we got settled, we sold the boat back to us, re-documented and dissolved the LLC.

Once you come up with a tentative plan, you might want to consult with a tax attorney or accountant. We did and it helped.
Larry M is offline   Reply With Quote
Old 01-31-2019, 02:15 PM   #5
Guru
 
BandB's Avatar
 
City: Fort Lauderdale
Country: USA
Join Date: Jan 2014
Posts: 16,119
Quote:
Originally Posted by Selidster View Post
I recently bought Georgia Girl hull #16. I also lost everything to the Carr Wild fire in CA, home, business, everything. Rather than rebuild I bought Georgia Girl. Since I have no home anymore I can call home anywhere. Any recommendations as to the cheapest state to register the boat vs state taxes? I have 180 days to sort it before Florida sales tax becomes due. Any advice is greatly appreciated.
You can't just randomly designate your home or where the boat is to be registered, so my first question to you would be where do you intend to make your home and where do you intend to keep your boat?

Until you legally change your residence, you remain legally a resident of California. This has nothing to do with the boat and if you want to change that, then we can advise you some ways of doing so.
BandB is offline   Reply With Quote
Old 01-31-2019, 02:17 PM   #6
Member
 
City: Shasta
Country: Usa
Join Date: Mar 2018
Posts: 22
Thanks I'll give it a look.
Selidster is offline   Reply With Quote
Old 01-31-2019, 02:22 PM   #7
Member
 
City: Shasta
Country: Usa
Join Date: Mar 2018
Posts: 22
Well at this stage, I can pick the most cost effective location. The boat will be my residence and I plan on cruising the Bahamas then the loop.
I will have no land based home. To say I'm flexible is accurate.
Selidster is offline   Reply With Quote
Old 01-31-2019, 02:47 PM   #8
Guru
 
BandB's Avatar
 
City: Fort Lauderdale
Country: USA
Join Date: Jan 2014
Posts: 16,119
Quote:
Originally Posted by Selidster View Post
Well at this stage, I can pick the most cost effective location. The boat will be my residence and I plan on cruising the Bahamas then the loop.
I will have no land based home. To say I'm flexible is accurate.
But then you need to reestablish residency. You're still a California resident. Where are you living today?

Some steps needed and the reasons why.
-Drivers license and insurance changed.
-Physical location and legal address changed
-Bank account opened or changed
-Voting registration changed
-Physical location of both you and anything you own.

Why?
-Until you establish somewhere else as your legal residence, you're subject to California income taxes, property taxes, and other.

Florida and Texas are easy and used by many boaters and RV'ers. There are places in both states specializing in helping set up up. However, until you make the moves to change, the old state still has a hold on you.

This is all separate from where you register and keep the boat but can play a role. May be wise to consult an attorney. I don't know your income or if you have insurance settlements coming or anything else about you.

We went through a relocation from NC to FL in 2012. We accomplished it all in less than a week but that was a rapid pace. NC made us provide proof of the new residency with the things I mentioned above as they wanted to tax out income after the move.
BandB is offline   Reply With Quote
Old 01-31-2019, 02:51 PM   #9
Guru
 
menzies's Avatar
 
City: Jacksonville
Country: USA
Vessel Name: SONAS
Vessel Model: Grand Alaskan 53
Join Date: May 2014
Posts: 3,621
Don't know how much you paid for her, but the maximum sales tax on the purchase of a watercraft in Florida in $18K. Just in case you were looking at the full 6% plus county discretionary, if any, across the total value of the boat.

And also that is deductible on your tax return.
menzies is offline   Reply With Quote
Old 01-31-2019, 02:53 PM   #10
Guru
 
djmarchand's Avatar
 
City: Litchfield, Ct/Punta Gorda, Fl
Country: USA
Vessel Model: Atlas Pompano 23- outboard
Join Date: Aug 2012
Posts: 4,326
OK, so you are going to keep moving. I would federally document the boat, so no state registration. Then if you don't stay more than 90 days in one state, even states with sales tax then you don't have to pay any.


I did this several years ago. Bought the boat in Florida, federally documented it and moved it out of state within 90 days and kept moving. I finally sold it in NC and never paid any sales tax.


David
djmarchand is offline   Reply With Quote
Old 01-31-2019, 02:54 PM   #11
Guru
 
BandB's Avatar
 
City: Fort Lauderdale
Country: USA
Join Date: Jan 2014
Posts: 16,119
Quote:
Originally Posted by menzies View Post
Don't know how much you paid for her, but the maximum sales tax on the purchase of a watercraft in Florida in $18K. Just in case you were looking at the full 6% plus county discretionary, if any, across the total value of the boat.
Also, note that there is no property tax on a boat in FL.
BandB is offline   Reply With Quote
Old 01-31-2019, 02:55 PM   #12
Guru
 
djmarchand's Avatar
 
City: Litchfield, Ct/Punta Gorda, Fl
Country: USA
Vessel Model: Atlas Pompano 23- outboard
Join Date: Aug 2012
Posts: 4,326
Quote:
Originally Posted by menzies View Post
And also that is deductible on your tax return.

Only if it is within the $10,000 federal limit for sales and local taxes- courtesy of the new Trump tax law.


David
djmarchand is offline   Reply With Quote
Old 01-31-2019, 03:04 PM   #13
Guru
 
dhays's Avatar
 
City: Gig Harbor
Country: United States
Vessel Name: Kinship
Vessel Model: North Pacific 43
Join Date: May 2015
Posts: 7,271
Quote:
Originally Posted by djmarchand View Post
OK, so you are going to keep moving. I would federally document the boat, so no state registration. Then if you don't stay more than 90 days in one state, even states with sales tax then you don't have to pay any.


I did this several years ago. Bought the boat in Florida, federally documented it and moved it out of state within 90 days and kept moving. I finally sold it in NC and never paid any sales tax.


David


Donít most states figure 90 days during a years time as opposed to 90 consecutive days?
__________________
Regards,

Dave
SPOT page
dhays is offline   Reply With Quote
Old 01-31-2019, 05:40 PM   #14
Guru
 
BandB's Avatar
 
City: Fort Lauderdale
Country: USA
Join Date: Jan 2014
Posts: 16,119
Quote:
Originally Posted by dhays View Post
Donít most states figure 90 days during a years time as opposed to 90 consecutive days?
Every state is different. Some 90 days, some 60. In many situations, your state of residence plays a role too.
BandB is offline   Reply With Quote
Old 01-31-2019, 05:43 PM   #15
Veteran Member
 
JohnS's Avatar
 
City: Indianapolis
Country: USA
Vessel Name: MV La Vita Dolce
Vessel Model: Cheoy Lee 40 LRC
Join Date: Mar 2018
Posts: 68
Also, if you are actually changing residence, or have income that is not location dependent, such as investment or consulting, Florida does not have a state income tax.
__________________
Fair winds and following seas. JohnS
JohnS is offline   Reply With Quote
Old 01-31-2019, 05:53 PM   #16
Guru
 
caltexflanc's Avatar
 
City: North Carolina for now
Country: USA
Vessel Name: Small Incentive
Vessel Model: Boston Whaler 130 Sport
Join Date: Aug 2011
Posts: 4,813
Quote:
I would federally document the boat, so no state registration.
This is not true in most states now.

One is kidding oneself if you think you are going to evade the taxman. You can run but you can't hide. Pick a state to have the boat actually domiciled in and move on.

Home port on your documentation means zilch.
__________________
George

"There's the Right Way, the Wrong Way, and what some guy says he's gotten away with"
caltexflanc is offline   Reply With Quote
Old 01-31-2019, 07:51 PM   #17
Guru
 
djmarchand's Avatar
 
City: Litchfield, Ct/Punta Gorda, Fl
Country: USA
Vessel Model: Atlas Pompano 23- outboard
Join Date: Aug 2012
Posts: 4,326
Quote:
Originally Posted by caltexflanc View Post
This is not true in most states now.

One is kidding oneself if you think you are going to evade the taxman. You can run but you can't hide. Pick a state to have the boat actually domiciled in and move on.

Home port on your documentation means zilch.

Most states don't pay any attention to the home address of where the boat is federally documented so it is a good way to stay off of their radar. If you register the boat in a state with sales/use tax you usually have to pay it right there and then.

Also don't stay at any marinas on January 1 if the state has a personal property tax on boats. In many states the marinas have to report all vessels docked there on January 1 to the state and they use that report to track you down and ding you for the tax.

David
djmarchand is offline   Reply With Quote
Old 01-31-2019, 08:44 PM   #18
Guru
 
caltexflanc's Avatar
 
City: North Carolina for now
Country: USA
Vessel Name: Small Incentive
Vessel Model: Boston Whaler 130 Sport
Join Date: Aug 2011
Posts: 4,813
Quote:
Originally Posted by djmarchand View Post
Most states don't pay any attention to the home address of where the boat is federally documented so it is a good way to stay off of their radar. If you register the boat in a state with sales/use tax you usually have to pay it right there and then.

Also don't stay at any marinas on January 1 if the state has a personal property tax on boats. In many states the marinas have to report all vessels docked there on January 1 to the state and they use that report to track you down and ding you for the tax.

David
If they find your boat in their state they will pay attention, often times at the city level. Time of year makes no difference in most of them. This I know.

In the bigger scheme of things, we are talking chump change once you get past sales tax. Some folks spend thousands moving their boat around and making maneuvers to avoid a few hundred in taxes.

And by the way, you contradicted what you originally said... may want to clean that up.
__________________
George

"There's the Right Way, the Wrong Way, and what some guy says he's gotten away with"
caltexflanc is offline   Reply With Quote
Old 01-31-2019, 09:28 PM   #19
Member
 
City: Shasta
Country: Usa
Join Date: Mar 2018
Posts: 22
I'm not trying to skate out of taxes. I just haven't a home at the moment, so I can choose the most advantageous location. I appreciate the comments but my goal isn't to run from taxes or fees but to choose a good home port. Thank you all for your comments.
Selidster is offline   Reply With Quote
Old 01-31-2019, 09:54 PM   #20
Guru
 
BandB's Avatar
 
City: Fort Lauderdale
Country: USA
Join Date: Jan 2014
Posts: 16,119
Quote:
Originally Posted by Selidster View Post
I'm not trying to skate out of taxes. I just haven't a home at the moment, so I can choose the most advantageous location. I appreciate the comments but my goal isn't to run from taxes or fees but to choose a good home port. Thank you all for your comments.
You're tossing around a dangerous two words that have many varied meanings and that is "home port." Let's try some different terms if you don't mind with specific meanings. You need two things which may or may not come together.

1. A state of residence. Although you don't have a home right now, for legal purposes you do, the State of California remains your state of residence.

2. A principle location for your boat. The place you keep it most and decide to register it and pay taxes on it.

These may or may not be the same. For example if you docked your boat in FL today but didn't change your legal residence then they'd be 1. California and 2. Florida. On the other hand, if you moved your legal residence to St. Brendan's Isle and kept your boat in Charleston, then they'd be 1. Florida and 2. South Carolina. None of this is "home port."
__________________

BandB is offline   Reply With Quote
Reply

Tags
home port, registration, taxes

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off





All times are GMT -5. The time now is 01:44 AM.


Powered by vBulletin® Version 3.8.8 Beta 4
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.0
Copyright 2006 - 2012