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Old 12-10-2017, 10:27 PM   #1
chinacowboy
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City: Austin
Join Date: Dec 2017
Posts: 12
Tax Implications For Cruising The Pacific Northwest

I'm looking at buying a boat and cruising the Pacific Northwest: Oregon, Washington, BC, or Alaska. I'm looking to find the most tax efficient way to do so. I am a resident of Texas. My original plan was to buy in Washington and cruise the san juan islands, with anacortes as a home base. I am now reconsidering those plans with the 8% sales/use tax implications. I'll be on the boat 5 months out of the year and will be storing on the hard the rest of the year I'll likely only be in Washington for 2-3 years max. A few questions:

1) What is the most tax efficient way to purchase a boat and cruise between San Juan Islands and BC? It is my understanding the boat could be non registered in Washington and visit for 180 days a year (60 day + extension) or for one full year and not come back for another two years.

2) Can you receive multiple 60 day+ extension permits from the Washington in consecutive years? Does the 60 days get reset when you cross into Canada?

3) It is my understanding if you are a non-resident in BC you would not pay any tax on your boat. Is that correct? Do they need any additional documentation to prove that? For overwintering it looks like you need to be in a yard in BC and receiving maintenance as well?

4)Do people base their boat in BC and then jump down to Washington for 60 days at a time? Is their an established pattern with other boaters to avoid the use tax?

5) Is the boating in Washington significantly better than cruising BC to substantiate the cost of the use tax?

6) I'm looking at doing a 4 year cruise starting in WA and slowly working up the inside channel to Alaska. It just seems crazy to pay an 8% use tax to a state that I will be based in for two years...am I looking at that right?

7) It looks like charter boats are exempt from the use tax. Do you have to run a profitable charter business to use this exemption? Anybody used this strategy with success?

To be clear I'm not looking to avoid paying tax I'm looking to minimize my tax burden with proper planning and structure. I'm looking forward to hearing any ideas how I can structure my planned cruise. Many Thanks!
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