Sales Tax Boat Purchase

[sunchaser]

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.

 

[Larry M]

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

 

[yachtbrokerguy]

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

 

[Tidahapah]

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

 

[macka17]

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

 

[macka17]

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

 

[qmdv]

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

 

[Edelweiss]

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

 

[windmist]

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

 

[qmdv]

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

 

[Sealegs]

WA Use Tax for non-resident individual*(corps are subject to different rules) vessel owners can be avoided in two general ways.* Presuming the vessel is purchased in WA it can be left in the state for one year (I think that's the time limit) so long as it is then removed and doesn't return for at least two years.* Certain exemptions have to be filed to put this in play at the time of closing.* Alternatively a vessel can be purchased and removed from the state within 45 days of taking ownership.* Again an affidavit of intent has to be signed at the time of closing.* Subsequent to removal the vessel can return to and be in WA for up to 180 days in any 360 day period and avoid triggering use tax liability so long as the owner purchases a cruising permit for the second and third 60 day periods prior to the expiration of the first 60 day period.* These are purchased through the state licensing side.*

Additionally a vessel can be in WA and not* trigger use tax liability so long as it is in the state exclusively for the purpose of repairs and service.* This is elected through the submission of a Non-Resident Vessel Repair Affidavit.* The affidavit has to specify the organization who is performing the repairs/service along with their WA sales tax number.* During this time it can't be used for personal use - i.e. any "sea trials" must be accompanied by a representative of the repair org.* This affidavit is good for 60 days and extensions can be requested.*

There are bits and pieces of this info, some*case law,*and the NRVRA form on the web if you dig around.*

 

[Edelweiss]

I stand corrected; for non residents visiting Washington it is 60 days, not 90 days, and the option to purchase additional 60 day permits as Sealegs states below. For current residence, it's 15 days to register.

Trying to get around the sales tax or use tax laws can be tricky. *Sales tax is based on the sales price of the vessel and can be quite a few bucks. But generally the use tax on a used vessel isn't as bad, as the book values they use are pretty low.

From DOL website:

"Fair market value reflects the value of a vehicle according to the retail selling price at the place of use, compared to similar vehicles of like quality or character. The actual selling price may or may not be the same as the average fair market value in cases when an individual sells a used vehicle or vessel"

"Use tax is a tax on items used in Washington when sales tax hasnt been paid. When you purchase a vehicle or vessel from a private party, youre required by law to pay use tax when the vehicle or vessel title is transferred."

'Goods are purchased in another state that does not have a sales tax or a state with a sales tax lower than Washingtons. For example, items you purchase in Oregon that are used in Washington are subject to use tax.Use tax is determined on the value of the goods when first used in Washington. Generally, this is the purchase price. However, a depreciated value may be determined if the goods are used outside the state for a lengthy time before use in Washington by the same person.'

 

[Ocean Breeze NL]

Hmmm.... another benefit being up here in the far Eastern Northland where the icebergs roam from time-to-time and the whales and dolphins rule.. zero tax on the purchase of any used vessel.*

Maybe the gov't knows they ding us with so much fuel tax that it pays up for it hahah.

Elwin *