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Old 10-19-2011, 05:21 AM   #21
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RE: Sales Tax Boat Purchase

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shrimp wrote:
Well that doesn't sound to bad, I got the feeling from reading the posts there was a substantial outlay each year.A bit confusing though, if i am reading this right, depending on the circumstances you may have to pay the federal government, or the state government or the local town council.
One does not have to pay the Federal Government anything on an annual basis for registration. If you sell your boat and make a profit on the sale, which is unlikely, then you may have to pay Federal income tax. Yes, the state by state variation in other taxes and fees can be most confusing.
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Old 10-19-2011, 06:32 AM   #22
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RE: Sales Tax Boat Purchase

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dwhatty wrote:shrimp wrote:
Well that doesn't sound to bad, I got the feeling from reading the posts there was a substantial outlay each year.A bit confusing though, if i am reading this right, depending on the circumstances you may have to pay the federal government, or the state government or the local town council.
One does not have to pay the Federal Government anything on an annual basis for registration. If you sell your boat and make a profit on the sale, which is unlikely, then you may have to pay Federal income tax. Yes, the state by state variation in other taxes and fees can be most confusing.

*Shrimp, how does the $2,500.00 per year that Tony paid on his boat to the state of Georgia.* Or the $4 to 5,000,00 per year some states would charge for my boat.* In addition to that a sales or use tax that could run $50,000 to $60,000 on a new 40-45' boat.* Knowing what taxes are due where is very important.
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Old 10-19-2011, 04:24 PM   #23
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RE: Sales Tax Boat Purchase

Good grief, I thought the the $2,500 was a one off tax on buying the boat. The figures you have quoted above are amazing. From the outside looking in this seems a crazy situation.If, you say buy an RV and use it for leisure(not a permanent home) are you subject to the same type of tax issues?

Don, you mention sales tax and use tax together.Sales tax I understand is a one off cost, the use tax is obviously an on going expence. Over here if you buy a new boat or a second hand boat from a dealer you pay a 10% flat tax, we call ours GST, in the UK it;s called VAT etc. If you buy a second hand boat direct from the owner you do not pay that 10% tax. What is your sales tax as a % on boats in the US? From what you have posted it sounds like it varies from state to state, which means I guess that some states are better to buy in than others.
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Old 10-19-2011, 05:17 PM   #24
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RE: Sales Tax Boat Purchase

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shrimp wrote:
Good grief, I thought the the $2,500 was a one off tax on buying the boat. The figures you have quoted above are amazing. From the outside looking in this seems a crazy situation.If, you say buy an RV and use it for leisure(not a permanent home) are you subject to the same type of tax issues?

Don, you mention sales tax and use tax together.Sales tax I understand is a one off cost, the use tax is obviously an on going expence. Over here if you buy a new boat or a second hand boat from a dealer you pay a 10% flat tax, we call ours GST, in the UK it;s called VAT etc. If you buy a second hand boat direct from the owner you do not pay that 10% tax. What is your sales tax as a % on boats in the US? From what you have posted it sounds like it varies from state to state, which means I guess that some states are better to buy in than others.
*Andy, sales tax rates vary among the states usually from 5-9%.* That is a one time charge.* A use tax is similar to a sales tax in that if you haven't paid sales tax in one state it is charged upon registering in another state.* It can be the full amount or the difference in what was paid and the rate in the registering state.* Most states will charge sales tax again upon the purchase of a previously owned boat whether the tax was paid before or not.* Property taxes are assessed yearly and can be substantial.

Many people say that US citizens don't pay enough taxes.* I can assure you that there are many.* If we say anymore about this Tony will send us to OTDE.
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Old 10-20-2011, 05:29 AM   #25
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RE: Sales Tax Boat Purchase

The way I recommend to my buyers is to form a Delaware corporation, and let the corporation by the boat. Delaware has no sales taxes.

You must however be careful where you keep the boat. Georgia has a 184 day rule; if you keep the boat in the state longer, you must file personal property taxes. Florida has no such rule. SC is 180 days, NC is 90 days.
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Old 10-20-2011, 03:54 PM   #26
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RE: Sales Tax Boat Purchase

Where you buy the boat is less important than where you keep it and for how long. The states with a low sales tax often have a yearly tax that can get very high if you keep the boat many years. Some states have no sales tax and other states have no yearly excise or property tax, and what was true last year may not apply next year.
We can all be sure of death and taxes but we all try to avoid both of those things as long as we can.
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Old 10-21-2011, 05:12 AM   #27
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RE: Sales Tax Boat Purchase

Carefull Shrimpy we'll get banished.
Any how be alert the world needs more lerts.
I must admit the taxes in USA used to worry me when I lived there as a young guy in the 70's .
Local taxes, state taxes and federal taxes as well as the tax you pay when you get service/or not (tips)
Boy they all add up.
Just a different way of doing it I suppose.
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Old 10-22-2011, 07:24 PM   #28
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RE: Sales Tax Boat Purchase

One interesting thing when I registered our Monk in TN a year or so ago. I expected to pay the typical sales tax when I registered. Our Monk is one of the earlier ones and back then they used a couple of different builders. TN, and I believe most states, can only assess the boat off book value for the vessel. As luck would have it, the builder of my boat was also listed on the previous registration and when the tax people ran it when I went to register in TN, they could not find the builder so they could not fairly assess the vessel, per their own policy, to calculate the tax. So- I paid $2.00 as that is there policy if they cannot determine the value to tax through the NADA guides. It is rare that one can avoid taxes based on the policy of the taxing entity but I definitely did not complain. Other states have other rules- for example in GA, I did not have to pay the annual ad velorum tax on our Monk due to her age- they only taxed vessels 20 years old or newer.
So- buy an old trawler and maybe you can save a lot on taxes. I guess the tax man feels you pay your taxes in the form of sweat equity on the vessel and that is sufficient!!
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Old 10-25-2011, 08:12 PM   #29
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RE: Sales Tax Boat Purchase

Might also want to check into N.H. No state sales tax...but VERY limited coastline
And yes, RVers have the same issues to a degree.

Jim
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Old 10-28-2011, 06:45 AM   #30
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RE: Sales Tax Boat Purchase

Hi.
Just a question. Maybe somebody on here may help.

I'm Retired. Live in Australia.

Was thinking of buying around a 45\50ft trawler type boat over there.
Using it over there (USA) for a yr or two. Then ship it back here with me?.
Do the Intra coastal. Florida. Lakes. (Brother lives over the border in Ontario.)
Maybe the North West Passage. and down west coast of Alaska to where ships pick up boats for Overseas.


What are the rules for foreign ownership in US. And can I stay for more than 12 months if travelling.
Or does the 12 month in. 12 months out. Apply, regardless.

I don't need anything. and will be doing nothing but Spending money while in US. Definitely won't be staying.
Just visiting.
But reading here. Was just wondering. As here in Aust,. and other countries I've been to.
You just visit. Then leave. No taxes etc. Only on items you buy.

Sea don't bother me. I've been a Single Hander Sailor all my life. Sailed from Cape Town to Australia in '73.
And was a Deckie on North Sea Trawlers in '50's..

Just need a good sea boat??.

Regards
Macka17
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Old 10-28-2011, 08:18 AM   #31
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RE: Sales Tax Boat Purchase

Mack -- Assuming you are serious and not just boat dreaming, you have lots of options.* You can take offshore delivery and avoid all taxes except Australia when the vessel ultimately returns there. The NW passage may be trickey though if the vessel*stays over a year in Canada. So long as you are travleing you'll have no taxes due in the individual US states. I'd suggest a good broker, likely in Western Canada (BC), be* engaged to look for a vessel on the "West Coast."* Once you get a short list of vessels, you can travel to "West Coast" and evaluate them. The broker can also walk you through the tax thing.*As an Aussie you have some pull in Canada.
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Old 10-28-2011, 09:00 AM   #32
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RE: Sales Tax Boat Purchase

Mack:* As a foreigner you can easily buy a boat in the US and pay no US taxes.* We sold our last boat to a couple from Queensland in North Carolina in 2006 and no taxes were collected or paid.**We have met several people from*OZ and NZ over the last few years who have done what you are looking to do. *Talk or email*Norm Havercroft.* He has helped us with*closings and re-documenting.* Here's his contact info.*

Marine Documentation Services

Anacortes, WA* 98211

(360) 299-3272

Info@marinedocservice.com
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Old 10-28-2011, 11:11 AM   #33
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Sales Tax Boat Purchase

There are no nationwide taxes on boats in the US, it is all up to the individual states. It is the same for US buyers as foreign buyers, where the boat is kept and how long makes the difference unless the boat is registered in another country.
You can register the boat in Australia while it is in the US, and then get a "cruising permit" that allows you to cruise throughout the US without any taxes due. After one year you must leave the US for at least two weeks to get a renewal of the permit, so you plan your entry into Canada, Mexico, or the Bahamas that way. When you see an ad that states "not for sale to US residents while in US waters" that means the boat is here on a cruising permit.
Another option is to form a corporation in a no sales tax state that will own the boat, you need not be a citizen to do that, and then do not stay in any place long enough to incur a use tax liability.
The Australian dollar is so high now that there are great deals to come here to buy a boat, cruise for awile, and then ship it to your home. Last winter I shipped a 55' Fleming to Australia from Florida for $68,000 US. Shipping cost is based on size and value due to insurance costs.


-- Edited by yachtbrokerguy on Friday 28th of October 2011 11:13:12 AM
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Old 10-28-2011, 12:27 PM   #34
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Sales Tax Boat Purchase

Macka,
BO on the forum lives in Mooloolaba and has recently brought a 48/50 ft boat out from the US (A raised Pilot House ) he should have some good info.
PM him he may shed some light on it all.

With the Aus dollar back on the rise 1.07 yesterday things are looking good for that sort of exercise, esepically if you can lock in a price


-- Edited by Tidahapah on Friday 28th of October 2011 12:29:15 PM
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Old 10-29-2011, 05:56 PM   #35
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Sales Tax Boat Purchase

OK.

Try Again.

What is a good make of trawler type boat. around the 40 to 45 ft. Pilothouse* preferably. to do the loop. From. say* Ft Lauderdale (lots of boats for sale there) down, round the corner past Florida. and in at New Orleans area.

There's lots on the market but, as with anything else. Not coming from there. I don't know the good from the bad. Quality and seaworthiness. Around the $100\150k mark.

Plus. With a smaller one. I can store on the hard somewhere when we're travelling elsewhere. Out of the water 6 months of the yr. will break the wet Cycle in the fibreglass. Which has to be a good thing.

*

PS.

I'm not big noting myself. We are comfortable. Financially. Normally do 3 or 4 months a yr overseas. (every yr now) or cruising Aust in 27ft* van.. Ever since '94 when I gave up full time work.

6 months work. 6 months cruise. Worked well. and that way you pay no tax as such. Taxman gives a lot back again over the second 6 months.

and you get to see lots of the world.

macka17


-- Edited by macka17 on Sunday 30th of October 2011 05:42:49 PM
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Old 10-29-2011, 06:09 PM   #36
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RE: Sales Tax Boat Purchase

Whoops sorry.
Above a coupla shots from our upstairs deck. Houses on front are multi level going down a steep hillside
These are shots of tops of them.
We live in Central Queensland. Sub Tropics. Shorts and skivvy with sandals all yr. Summer lasts around 6 to 8 weeks. Have to sometimes wear a jumper at night.
We're just at the lower (southern) end of Great Barrier reef here. NEVER get Cyclones and most bad weather passes us by.
Sort of no mans land. T'ween weather patterns. Above and below us get some real ****. we just cruise along.. Good fishiong. Small AMrlin and all reef fish.

Whales going by at present. T'ween Islands and us. and mate just brought me a few slabs of Spanno (Spanish Maackerel)home for dinner.
The only fish to eat..

Macka17
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Old 11-06-2011, 06:33 AM   #37
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RE: Sales Tax Boat Purchase

I have been a lurker for a while. Been thinking about getting a trawler (32 to 40 ft). I live in Montague, CA just south of the oregon border inland. I have some knowlege of the sales tax dodge. I bought an airplane in Providence, RI four years ago and flew it home. Kept the plane in Weed, CA and Ashland Oregon back and forth for six months. I took ownership of the plane out of state and it was physically out of CA for over 100 days in the first 180 days of ownership so no use tax was owed to California. I now pay CA property tax of approx 1%.

Does anybody know what happens if I buy a boat (or take delivery) in Oregon then move it to Washington. A bit harder to move a boat arround than a plane.

Tim
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Old 11-06-2011, 08:03 AM   #38
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Sales Tax Boat Purchase

Quote:
qmdv wrote:
Does anybody know what happens if I buy a boat (or take delivery) in Oregon then move it to Washington. A bit harder to move a boat arround than a plane.

Tim
Washington is a title state and you have to take your sales receipt and documents to the County Auditors office to transfer titles or register (if your boat is documented). *

The Department of Revenue here has an aggressive tax collection policy and will go after you with penalties, twice the tax due, if they discover tax evasion. *The county and cities participate in enforcement, as they receive a share of the revenue. *A guy on our dock, was documented and had Alaska registration, didn't transfer his registration. *He was claiming his boat was for sale and he was a dealer. *The Anacortes Police, after several warnings, came down to his boat one morining and cited him on the spot. *Worse they turned him over to Dept. of Revenue who also came after him for taxes.

I don't know off hand what the time tables are for non residences who move into the state or keep a boat here. But any vessel ported here over a certain period of time, I'm thinking 90 days, must be registered here. But if you are already a resident of the state, it's like 15 days, you will have to pay sales tax and register here. *Go to the Washington Dept. of Licensing web site and I believe they have more information there.


-- Edited by Edelweiss on Sunday 6th of November 2011 09:55:19 AM
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Old 11-06-2011, 09:41 AM   #39
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RE: Sales Tax Boat Purchase

Definitely, if you want to keep your boat in Washington, you will have to pay the approx. 9.5% sales tax, it will be called Use Tax but it's the same dollar amount. Most people I've heard about who are trying to dodge the tax keep their boat in British Columbia. I think, even then, you have to be out of the country for a certain period of time. Maybe go to Alaska during the summer?

Ron
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Old 11-06-2011, 09:52 AM   #40
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RE: Sales Tax Boat Purchase

So you make your purchase in California and imediatly move it to Oregon-No sales tax. Keep it in Oregon for an extended period-no sales tax. Then move it to Washington after that extended period-Maube no use tax. Have to do some study on how long you have the boat out of state to keep from paying the tax.

If it too much trouble then you go ahead and pay the tax man.

Tim
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