Buying a Boat in the US

I'm Canadian and I'm planning on buying a used boat in the US. The boat will remain in the US. I'm guessing I need to register and pay taxes on it. The boat will be on Lake Champlain between the states of Vermont and New York. Can I chose where to register and pay the sale taxes? thanks in advance for any advice to my American cousins.

Tigs said:

I'm Canadian and I'm planning on buying a used boat in the US. The boat will remain in the US. I'm guessing I need to register and pay taxes on it. The boat will be on Lake Champlain between the states of Vermont and New York. Can I chose where to register and pay the sale taxes? thanks in advance for any advice to my American cousins.

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The sales tax will be paid in whatever jurisdiction the sale is in. For example, if you buy the boat in Burlington, VT, you'll pay the sales tax at that city's local rate.

You will want to contact both the New York and Vermont state departments of motor vehicles to inquire about ownership requirements. In most cases a vessel or vehicle must be owned by a state resident to be registered in that state.

Sabre602 said:

The sales tax will be paid in whatever jurisdiction the sale is in. For example, if you buy the boat in Burlington, VT, you'll pay the sales tax at that city's local rate.

You will want to contact both the New York and Vermont state departments of motor vehicles to inquire about ownership requirements. In most cases a vessel or vehicle must be owned by a state resident to be registered in that state.

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So if I'm not resident of either state actually not an American resident how could I register the boat?

Tigs said:

So if I'm not resident of either state actually not an American resident how could I register the boat?

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That's where you're going to have to do your homework. Some states may allow out-of-state owners, most don't. Some owners have formed corporations for exactly this purpose. In such a case the corporation has an address in the state.

In my state, the marinas have huge numbers of boats owned by residents of BC, but in most cases they register them in BC and just keep them here.

I don’t believe this is correct. It certainly is not the case in Washington state.

Sabre602 said:

That's where you're going to have to do your homework. Some states may allow out-of-state owners, most don't. Some owners have formed corporations for exactly this purpose. In such a case the corporation has an address in the state.

In my state, the marinas have huge numbers of boats owned by residents of BC, but in most cases they register them in BC and just keep them here.

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These seems more complicated then I thought, yes it does seem I need to do some leg work. I'll post back what I found ...thanks

It is all going to depend on where you keep the boat. If your going to keep the boat at a marina on the New York side of the lake you'll have to register and pay sales tax to New York. If you pick a marina on the Vermont side you'll register and pay sales tax to Vermont. There is no need to be a resident of either state.
I went to Plattsburgh City Marina a couple of years ago and their parking lot was full of Canadian cars. People living in Canada and keeping their boat at Plattsburgh City Marina.

Greetings,
Mr. T. Are you talking about registering/documenting OR licensing (State #'s on the bow)? 2 entirely different government jurisdictions. 2 different sets of laws as far as I know.

tiltrider1 said:

I don’t believe this is correct. It certainly is not the case in Washington state.

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I agree! We bought, owned and had registered in Washington State two separate boats while being a resident of Oregon. Washington is fine with collecting taxes (both sales and use) on a boat that is docked in the State. They don't care where the owner is located at.

kenk said:

It is all going to depend on where you keep the boat. If your going to keep the boat at a marina on the New York side of the lake you'll have to register and pay sales tax to New York. If you pick a marina on the Vermont side you'll register and pay sales tax to Vermont. There is no need to be a resident of either state.
I went to Plattsburgh City Marina a couple of years ago and their parking lot was full of Canadian cars. People living in Canada and keeping their boat at Plattsburgh City Marina.

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That's what I was thinking also, Lake Champlain is like 80% Canadian boaters. Those Canadian license plates are mostly from owners that bought boats from a Canadian dealer but the boat was delivered to the US hence those Canadians don't pay Canadian taxes on the boat nor US taxes because the boat goes back into storage on the Canadian side. The boats can return back into Canada for storage or guarantee maintenance if they cross back into Canadian waters for any other reason they will pay sales tax on the boat.

RT Firefly said:

Greetings,
Mr. T. Are you talking about registering/documenting OR licensing (State #'s on the bow)? 2 entirely different government jurisdictions. 2 different sets of laws as far as I know.

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Ok do I have to have a USCG document of the boat? because from my understanding only US citizens can have that document. I was initially talking about licensing the boat, Question can I buy it, example in Maine and then boat it to lake Champlain and license it in Vermont for instance.

thanks for any advice very helpful all

Tigs said:

I'm Canadian and I'm planning on buying a used boat in the US. The boat will remain in the US. I'm guessing I need to register and pay taxes on it. The boat will be on Lake Champlain between the states of Vermont and New York. Can I chose where to register and pay the sale taxes? thanks in advance for any advice to my American cousins.

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A lot of incorrect information given. Sales tax may or may not be paid where the sale is made. If the boat is to be moved to another jurisdiction, you typically can exempt from the sales tax and then pay use tax where you take the boat. The comment then about states not allowing out of state boat owners is just false. I am not aware of a single state that won't register a boat to owners from other states and countries.

Now, you will be required to register the boat where it's to be kept. You don't get to choose and there is no between two states, you're in one or the others. That's not to say though that you can't select the state you feel is most favorable and keep the boat there.

As to sales or use tax, it will also be based on the primary home of the boat. Now, there are various time tables based on where you purchase and where you intend to keep it. Each state exempts you based on different periods allowed for removing the boat. Each state has it's own rules as to taxation of boats brought into the state and time periods of previous ownership. Also, each state has it's own rules as to how long you can have a boat there before you must register it in that state.

Then there is property tax which some states have on boats and others don't.

I would simply look at where I intend to use the boat and then research sales and use tax, property tax, and registration for the state and/or states near.

Tigs said:

Ok do I have to have a USCG document of the boat? because from my understanding only US citizens can have that document. I was initially talking about licensing the boat, Question can I buy it, example in Maine and then boat it to lake Champlain and license it in Vermont for instance.

thanks for any advice very helpful all

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No, not only do you not have to, you can't. You simply register it in a state.

Yes, you can buy in Maine and take it to Vermont and register it there if that's where you intend to keep it.

Ok great info thanks all ...One last question , splinting hairs here, Seeing I'm doing most of my boating on Lake Champlain and I choose to register in Vermont because it seems to have a lower tax rate then NY, but I dock for the summer in a marina across the lake in New York ...can I do this ? seeing the boat will be more on the new York side but I register it in Vermont can I counter that by winterizing and storaging it on the Vermont side during the winter months ?

you would need to see if NY and Vermont have a reciprocal agreement on registration and taxes. I live in Pennsylvania and keep my boat in New Jersey on the Delaware River. Since the Delaware borders both states you can register in one state and keep the boat on the opposite shore.
John

Tigs said:

Ok great info thanks all ...One last question , splinting hairs here, Seeing I'm doing most of my boating on Lake Champlain and I choose to register in Vermont because it seems to have a lower tax rate then NY, but I dock for the summer in a marina across the lake in New York ...can I do this ? seeing the boat will be more on the new York side but I register it in Vermont can I counter that by winterizing and storaging it on the Vermont side during the winter months ?

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No. NY has specific rules that would require you to register in NY and might subject you to use tax. If you keep the boat in NY for 90 days, then you must register it there. Registration is inexpensive. However, it could subject you to use tax. I do not know NY's specifics in that regard.

Tigs said:

Ok great info thanks all ...One last question , splinting hairs here, Seeing I'm doing most of my boating on Lake Champlain and I choose to register in Vermont because it seems to have a lower tax rate then NY, but I dock for the summer in a marina across the lake in New York ...can I do this ? seeing the boat will be more on the new York side but I register it in Vermont can I counter that by winterizing and storaging it on the Vermont side during the winter months ?

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You also need to reexamine your information as Vermont may not have a lower tax rate as you have assumed. There's is 6%. NY's is as low as 4% or as high as 8.75% depending on location. NY gives you credit for tax paid to another state. Vermont does not do so. NY has a cap on sales tax on a boat so they can compete with Florida. Vermont does not.

BandB said:

You also need to reexamine your information as Vermont may not have a lower tax rate as you have assumed. There's is 6%. NY's is as low as 4% or as high as 8.75% depending on location. NY gives you credit for tax paid to another state. Vermont does not do so. NY has a cap on sales tax on a boat so they can compete with Florida. Vermont does not.

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Cool looks I need to get in touch with New York and Vermont to really look at the details ...thanks again

Tigs said:

Cool looks I need to get in touch with New York and Vermont to really look at the details ...thanks again

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And looks like you need to decide where you want to keep the boat and then just pay what it costs to do so.

BandB said:

And looks like you need to decide where you want to keep the boat and then just pay what it costs to do so.

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Well there are two marinas that I like one in NY and the other in Vermont, both on Lake Champlain.. I'll just go where the state taxes are lower.

Tigs,

We have a summer house on Lake Champlain in Westport, NY. I suspect that's one of the Marinas you are looking at as there's a lot of Quebecers there. We also have a small Bayliner there. I might be interested in renting you a mooring ball if you tell me the size of your boat. FYI, it would be just the ball and no electric or water.

May I suggest you call Larry & Lane Carrol at the Westport Marina to see what they suggest you do. They know everything, everybody, and are just really nice people. here's their # 518-962-4356

Salute!

~Lucky Chucky

Tigs said:

That's what I was thinking also, Lake Champlain is like 80% Canadian boaters. Those Canadian license plates are mostly from owners that bought boats from a Canadian dealer but the boat was delivered to the US hence those Canadians don't pay Canadian taxes on the boat nor US taxes because the boat goes back into storage on the Canadian side. The boats can return back into Canada for storage or guarantee maintenance if they cross back into Canadian waters for any other reason they will pay sales tax on the boat.

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I am somewhat confused by this paragraph? My understanding was that any boat sold by a dealer in Canada was subject to Canadian tax. My understanding was that Canadian boats sold by individuals and delivered to the US, there was no Canadian taxes due. Someone please correct me if I am wrong.

On the US side, the state taxes would be paid wherever the boat was registered. THE ONE THING YOU HAVE TO DO IS GO TO THE INTERNET SITE OF THE INDIVIDUAL STATES AND SEE WHAT THEIR SPECIFIC REQUIREMENTS ARE!

Some states require you to register a boat in that state if it is used in the state for a specific period of time. Used may, or may not, be defined as actually usage and in the water ready to be used.

As noted previously, some states (or counties within the state) also have personal property taxes. Don't know if that applies in NY or Vermont, but worth checking on.

Jim

Lucky Chucky said:

Tigs,

We have a summer house on Lake Champlain in Westport, NY. I suspect that's one of the Marinas you are looking at as there's a lot of Quebecers there. We also have a small Bayliner there. I might be interested in renting you a mooring ball if you tell me the size of your boat. FYI, it would be just the ball and no electric or water.

May I suggest you call Larry & Lane Carrol at the Westport Marina to see what they suggest you do. They know everything, everybody, and are just really nice people. here's their # 518-962-4356

Salute!

~Lucky Chucky

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I have been to westport marina, it's a great place, but we are looking at Gaines Marina right near the border or Mallets Bay. Thanks much for the info.

JLD said:

I am somewhat confused by this paragraph? My understanding was that any boat sold by a dealer in Canada was subject to Canadian tax. My understanding was that Canadian boats sold by individuals and delivered to the US, there was no Canadian taxes due. Someone please correct me if I am wrong.

On the US side, the state taxes would be paid wherever the boat was registered. THE ONE THING YOU HAVE TO DO IS GO TO THE INTERNET SITE OF THE INDIVIDUAL STATES AND SEE WHAT THEIR SPECIFIC REQUIREMENTS ARE!

Some states require you to register a boat in that state if it is used in the state for a specific period of time. Used may, or may not, be defined as actually usage and in the water ready to be used.

As noted previously, some states (or counties within the state) also have personal property taxes. Don't know if that applies in NY or Vermont, but worth checking on.

Jim

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Let me clear up the paragraph, when a Canadian buys a new boat from a Canadian dealer he or she has to pay both federal and provincial taxes if he does his boating in Canada. But the boat can be delivered in the US and as such he doesn't have to pay the taxes seeing no boating will be done in Canada. The boat can return back into Canada for only guarantee maintenance work or winter storage. The term is called an "inbound" boat. He can decide several years latter to come back to Canada and then the taxes will be paid per the value of the boat at that time.

Thanks for the info I will definitely go to the Vermont and NY web sites to see whats involved in both states when registering a boat.

What would the tax and registration implications be for a live aboard trawler boat bought in the US by a US citizen who takes the boat to Canada for summer usage. The boat would spend most of it's time in Canadian waters (Great Lakes) year round.

As a Canadian that bought a Grand Banks 42 in the US and kept it there, this is what I did. First after purchasing the boat I transferred and registered the vessel in Canada under the Canadian Register of Vessels (the boat does not need to be in Canada to do this). This Registers it with Transport Canada and gives is a port of registry and name (cost is $250). It is now a Canadian Vessel. You pay no taxes until you cross the border into Canada with the boat. Customs will then Tax you on the purchase price, make sure you have the bill of sale. Foreign-flag vessels without a cruising license(which you can't get until you leave the US and re-enter), which are 30 feet or longer in length, must pay an annual fee of $27.50 for the user fee decal. User Fee Decals may be purchased online through the CBP website. This Decal allows the Vessel to move around the US.

As a US citizen and US registered boat, you would be a visitor to Canada. We have visited many times under the same circumstances and it’s a simple and clear process. Check in, and you can stay for up to a year, then need to leave. The only issue we encountered is that if you plan to leave the boat in Canada and go home yourself, there is another form you need to fill out. Still no big deal.

Tigs said:

That's what I was thinking also, Lake Champlain is like 80% Canadian boaters. Those Canadian license plates are mostly from owners that bought boats from a Canadian dealer but the boat was delivered to the US hence those Canadians don't pay Canadian taxes on the boat nor US taxes because the boat goes back into storage on the Canadian side. The boats can return back into Canada for storage or guarantee maintenance if they cross back into Canadian waters for any other reason they will pay sales tax on the boat.

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Simply not true. A vessel owned by a Canadian will have tax and perhaps duty due the instant it hits Canadian waters regardless of where it is licensed, documented, registered or state registered. I have been regularly involved with these cross border situations for 30yrs. doing cross border deliveries and tonnage measurements for Transport Canada. If someone is getting away with this it is sheer luck and there will be a reckoning.

PS. It's the RCMP that show up at your door not Revenue Canada. I've been involved in these situations and can confirm that the RCMP are not very flexible.

Taxes and Registration

twistedtree said:

As a US citizen and US registered boat, you would be a visitor to Canada. We have visited many times under the same circumstances and it’s a simple and clear process. Check in, and you can stay for up to a year, then need to leave. The only issue we encountered is that if you plan to leave the boat in Canada and go home yourself, there is another form you need to fill out. Still no big deal.

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Thanks for the info TwistedTree; this makes things much less intrusive.
The boats I'm looking at are in Arkansas and Alabama whereas I live in Arizona.
Do I have the option of paying tax and registration in either the state of residence or the state of purchase?

Taxes and Registration

Willcocon said:

Thanks for the info TwistedTree; this makes things much less intrusive.
The boats I'm looking at are in Arkansas and Alabama whereas I live in Arizona.
Do I have the option of paying tax and registration in either the state of residence or the state of purchase?

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Good day Twistedtree;
Did some further research. Sales tax applies on new and used boats sold by a dealer in Arkansas. There is no sales tax on casual sales between individuals. Arkansas Boat Registration | MarineTitle.com
It would also seem that I can register the boat in Arkansas even though I live in AZ.
I would like more info on the "sailing to Ontario Canada with dockage and winter storage there year round by an American citizen." Could you suggest a web-link to review this?
Thanking you in advance