Where should we register our boat? FL? GA? SC? NC?

[Steve91T]

Hello all. We live in Charlotte NC and are purchasing a boat in FL. Our plan is to cruise FL, the keys, and eventually get it to Savannah or Charleston. 3 1/2-4 hr drive and a fun city to have the boat at while we do some repairs/updates.

As far as registration, are there any advantages or disadvantages to registering the boat in any of these states? I believe it needs to be registered in the state that the boat will spend the majority of the year in. I’m thinking it’ll be a toss up between FL and GA. But if SC would be easier/cheaper, we can make that happen.

Thanks guys.
Steve

 

[kenk]

You answered your own question. "it needs to be registered in the state that the boat will spend the majority of the year in."
Some places are more strick than others on this, so you can judge for yourself.

 

[Steve91T]

You answered your own question. "it needs to be registered in the state that the boat will spend the majority of the year in."
Some places are more strick than others on this, so you can judge for yourself.

Right. I figured it’s better to ask here because so many people have already dealt with registering in these states and know the pros and cons.

 

[Westiculo]

Check the sales tax in each state. Florida won't make you pay sales tax if you say you're going to leave the state within 30 days (or was it 90? I don't remember). They give you a temporary registration which is good for 90 days or something. The sales tax can be a pretty big hit depending on where you decide to register. The alternative is to document the boat instead; that's what we did. Bought the boat in Florida, got the 90-day registration, left the state and got our documentation.

 

[Steve91T]

Check the sales tax in each state. Florida won't make you pay sales tax if you say you're going to leave the state within 30 days (or was it 90? I don't remember). They give you a temporary registration which is good for 90 days or something. The sales tax can be a pretty big hit depending on where you decide to register. The alternative is to document the boat instead; that's what we did. Bought the boat in Florida, got the 90-day registration, left the state and got our documentation.

Oh I don’t even know what that means. Is that instead of regeristing in a state?

 

[High Wire]

Oh I don’t even know what that means. Is that instead of regeristing in a state?

Call the broker and ask if the boat is documented or only state registered.

 

[Steve91T]

Call the broker and ask if the boat is documented or only state registered.

He said it’s documented.

 

[Crusty Chief]

He said it’s documented.

Documented means registered with the coast guard. It may also need to have a state registration depending on the state requirements.

On the West Coast Oregon and Wash, require vessels being registered even if they are documented, just a different location for the state sticker. And the dingy has to also, usally the dink is too small to meet the documented standards.

Cheers

 

[sledge]

Steve, I'm dealing with a similar situation though I bought my boat in a different state and was thinking of visiting Florida. You're smart to ask ahead of time, especially if you have the flexibility to choose between those three states.
I've been reading FL laws and of those three you should check but I think FL now has a 6% boat sales tax with a cap at $18,000, not to mention a potential county or local tax. Its possible SC or GA could be a better deal, it's best to search their respective departments of revenue. The point is if you have the option to pay the sales tax in another state, it could mean a difference of thousands of dollars.
You don't have to pay FL tax if you indicate to FL you intend to leave the state, but for the initial purchase, I think you have to leave FL within 30 days.
I did the USCG documentation but later I wanted to cruise through FL waters and I read that in order to be allowed to "visit" FL for up to 90 days, FL expects you to have a state registration from another state.
the 90-day period is mentioned under exemptions at this FL HSMV site.

One more factor for you is insurance. Several marine insurance companies are interested whether you will be below a certain latitude during hurricane season. Often this latitude is around Brunswick but it varies. This could be another way to save $ depending on where you decide to keep it.

 

[BandB]

One more factor for you is insurance. Several marine insurance companies are interested whether you will be below a certain latitude during hurricane season. Often this latitude is around Brunswick but it varies. This could be another way to save $ depending on where you decide to keep it.

Yes, I guess we all just saw how that works out.

 

[PMF1984]

Check with the boat registry folks in Florida as mentioned.

Not for registration purposes, as it is a documented vessel, but to see how long before you would need to pay the sales tax.

When you get to home port, you should check with the boat registration folks, but if is like anywhere up north, you will have to pay the sales tax.

When you return to Florida, or other spots, and exceed the "free" time limit, you may have to do some minor paperwork, but will be exempted from the use tax if you can show you have paid it in your home state.

There is no free lunch.

There are folks who have an elaborate travel itinerary based on moving from a state before any use tax is due. Really?

 

[BandB]

Check with the boat registry folks in Florida as mentioned.

Not for registration purposes, as it is a documented vessel, but to see how long before you would need to pay the sales tax.

When you get to home port, you should check with the boat registration folks, but if is like anywhere up north, you will have to pay the sales tax.

When you return to Florida, or other spots, and exceed the "free" time limit, you may have to do some minor paperwork, but will be exempted from the use tax if you can show you have paid it in your home state.

There is no free lunch.

There are folks who have an elaborate travel itinerary based on moving from a state before any use tax is due. Really?

Florida is 6% sales tax, maximum of $18000, $170 registration (and it does still apply for a documented boat), no property taxes. If leaving the state and going to register elsewhere, you must get a sticker allowing 90 days to leave. Upon leaving, you must register and pay sales or use tax elsewhere within 30 days to avoid Florida sales tax.

Still, Florida is likely to be your lowest cost among the states you mentioned. Check each state's website. All four states from FL to NC do have sales tax on boats and all four do require registration. I don't know for sure, off the top of my head, which ones have property taxes on boats, but I think Florida may be the only one that doesn't. Still property tax obligation is going to be based on the physical location of the boat, not just on where registered.

 

[psneeld]

Plus after 60 days, you will have to register in GA or SC I am pretty sure...

 

[Steve91T]

My head is spinning. I guess I’m over thinking it. NC does have property taxes. I thought I read that SC has a cap on tax. Maybe I’ll just get the temporary registration from FL and figure it out later.

 

[RT Firefly]

Greetings,
Mr. S91. We kept our boat in NC for 5 years and paid county tax yearly. What I remember is that each county had a different tax rate (%'age of value). I think Camden county had one of the cheapest rates @ 3%. I think others were up to 6%. Might be worth searching for a "cheap" county to store.

 

[sledge]

Yeah its very difficult to read through all the legal tax jargon on the DOR sites for every state but its a legitimate concern and worthwhile to do the homework for someone in a situation where you have some flexibility in where you're going to keep it.
For example I think you're right I read SC boat sales tax cap is $300 vs $18000 in FL; huge difference.
Use or property tax though is a separate factor as Firefly mentions. It would be nice if someone on TF who lives in SC could comment on how their taxation works...

 

[FF]

Florida is GREAT if the boat is older.

Sure you may be stuck for sales tax , but if the boat is 30+ years old the annual licensing fee is usually under $10.00.
The boat will need its "origonal" engine.

In some states the annual fee is really high, even on older boats..

I believe if you register the boat in a no tax state for over a year , and then go to FL, no sales tax is due .

Good hunting!!

 

[Shrew]

USCG Documented really only means that is where it is Titled, not "Registered".

Florida:
-> Sales Tax: %6
-> Personal Tax: N/A

-----------------------------------

South Carolina:
-> Sales Tax: 5% with $300 cap
-> Personal Tax: yes

Personal property tax is collected annually on cars, trucks, motorcycles, recreational vehicles, boats and airplanes. Personal cars, light trucks and motorcycles are assessed at 6 percent of market value.

-----------------------------------

North Carolina:
-> Sales Tax: 3% with $1,500 cap
-> Personal Tax: yes

-----------------------------------

Georgia:
-> Sales Tax: 4% + local
-> Personal Tax: yes

 

[dhays]

USCG Documented really only means that is where it is Titled, not "Registered".

Excellent way to describe it.

 

[BandB]

My head is spinning. I guess I’m over thinking it. NC does have property taxes. I thought I read that SC has a cap on tax. Maybe I’ll just get the temporary registration from FL and figure it out later.

Just so you're aware, you may need to register in more than one state. For instance, if you register in Florida but then keep it in SC, you may be required to register there even if already registered in FL. Each state has a time limit. Now, I'm sure many here will tell you to ignore it or that they've never seen anyone ticketed for it. Also, property tax will not be determined by where it's registered only. Some states are more diligent than others, but most have some form of rules for January 1 while some indicate principle place of use.

You should be getting the documentation transferred meanwhile. For someone unsure of where they're ultimately going to keep their boat, documentation does give you the one advantage of not having to then change your numbers, but simply change your sticker.

A reminder too that the Homeport listed in documentation has nothing at all to do with where it must be registered or is subject to taxes.

 

[Comodave]

As to home port, you can make it pretty much wherever you want to. When we kept our boat in California we home ported it in Tucson where we lived at the time. That way as we moved the boat around we didn’t feel the need to change the home port.

 

[markpierce]

...
On the West Coast Cal. ... require(s) vessels being registered even if they are documented, ...

No, California does not require state registration if the boat is USCG documented.

A documented boat is prohibited from displaying registration numbers on the bow.

 

[dhays]

No, California does not require state registration if the boat is USCG documented.

A documented boat is prohibited from displaying registration numbers on the bow.

Even if you don't have to register the boat in CA, you still have to pay personal property tax on the boat to the county in which it is kept.

 

[Shrew]

Just so you're aware, you may need to register in more than one state. For instance, if you register in Florida but then keep it in SC, you may be required to register there even if already registered in FL. Each state has a time limit. Now, I'm sure many here will tell you to ignore it or that they've never seen anyone ticketed for it.

I was audited by the State of CT. I bought a boat in CT, I live in NH. I registered the boat in NH. I kept the boat in CT. CT sent me an invoice for the sales tax, plus a penalty for each month the tax wasn't paid (18 months) between the purchase date and the audit date, PLUS monthly interest on the unpaid taxes.

By the time all was said done and paid, I paid the taxes to the state of CT, and the fines and interest equaled the taxes. so for me it was double the amount of taxes.

 

[Shrew]

A documented boat is prohibited from displaying registration numbers on the bow.

This is true of all states, however many states still require registration of a documented vessel. Those states commonly have a registration sticker with a different color code for documented vessels, than state registered vessels. Those states require that you affix the sticker without the bow numbers.

This idea is you don't want to be burdened with multiple bow numbers else the boat starts to look like a floating bingo card.

 

[DCDC]

We purchased an older boat in June and received the 90 day permit allowing transit to another state without paying Florida sales tax. Note that it is easier said than done:

> The permit application is provided in conjunction with a dealer or broker. Not sure if this is possible for a sale by owner.
> A notarized original form and a copy of the bill of sale must be submitted within 5 days of sale to the Florida Dept of Revenue.
> Within 10 days of departure from Florida you must provide proof - invoice for fuel, marina, etc. from another state.
> Within 30 days of departure you must provide proof of registration outside of Florida.
> Permit stickers are mailed to the dealer/broker who is supposed to apply them to the boat.

Link to form: http://floridarevenue.com/Forms_library/current/gt500003.pdf

We heard of a time extension if you are in a Florida boatyard for repairs but could not find confirming documentation.

Not difficult, just more forms and deadlines.

 

[Datenight]

By the time all was said done and paid, I paid the taxes to the state of CT, and the fines and interest equaled the taxes. so for me it was double the amount of taxes.[/QUOTE]

Too bad you were not in (boat) tax free Rhode Island then!

Rob

 

[Rossland]

USCG Documented really only means that is where it is Titled, not "Registered".


South Carolina:
-> Sales Tax: 5% with $300 cap
-> Personal Tax: yes

Personal property tax is collected annually on cars, trucks, motorcycles, recreational vehicles, boats and airplanes. Personal cars, light trucks and motorcycles are assessed at 6 percent of market value.

-----------------------------------
South Carolina:
Cap is now $500. Horry County (Myrtle Beach) allows 180 day stay without paying property tax.

Or register in Delaware. No sales tax.

 

[Steve91T]

Got it. Clear as mud.

So if I’m understanding correctly, FL has a one time sales tax. SC has only a $500 sales tax but I’ll be paying property tax every year? So pay now or pay later??

Florida long term sounds a lot cheaper.

I’d love to register in delaware but being that the boat will never be up there, I don’t see how I could get away with it. Right?

 

[Jim Cooper]

I'm pretty sure Delaware requires proof of residency to register your boat there.