questions on paper work washington state

[magna 6882]

I am purchasing a new boat in the next few weeks and am confused as to the process for paperwork. I know there will be sales tax ,buying in blaine then mooring in seattle. Thinking i would want it registered with coast guard but then there is the state registration. Do i still need numbers? .05 % hull value fee for annual registration. would this be the hull and not electronics or added components? In what order do i do these things.
Easy to wire money and get keys but i have no idea what everyone is doing.
About 80k in sales tax +hull fee using purchase price 4k a year + any coast guard fees?
Can anyone familiar with this process help me?

 

[klee wyck]

I am purchasing a new boat in the next few weeks and am confused as to the process for paperwork. I know there will be sales tax ,buying in blaine then mooring in seattle. Thinking i would want it registered with coast guard but then there is the state registration. Do i still need numbers? .05 % hull value fee for annual registration. would this be the hull and not electronics or added components? In what order do i do these things.
Easy to wire money and get keys but i have no idea what everyone is doing.
About 80k in sales tax +hull fee using purchase price 4k a year + any coast guard fees?
Can anyone familiar with this process help me?

You have it right. You will pay sales tax and you will pay the annual state registration fee as you estimated. You need the annual sticker but only need display the numbers if you do not register with Coast Guard. The Coast Guard registration is the optional part but at $27 per year, not the expensive part.
In terms of order, you can do it all at the same time and I recommend a marine documentation service. There is a good one in Anacortes.

 

[IRENE]

Same experience here. We used Pacific Maritime Title for the previous 2 transactions with good results. No affiliation.

Congrats on the boat, look forward to hearing about it.

 

[syjos]

In Washingtonn State, used to be, you get two receipts from the seller, one for the hull and machinery and the other for personel property, you pay sales tax on the hull and machinery only. Washington State looks at the hull, engine, transmission, running and steering gear as taxable on used older boats. And things like cleats, railings and other bolted down "as equipped" things. Personal Property purchased used is not sales taxable in Washington State.

I'm not a lawyer. I have assisted boat buyers with boat purchases as a consultant and successfully saved them from paying excess sales tax . I have not studied the new sales tax laws enacted last year, since I retired, so do not know if above still applies but it is worth it for you to check with a licensing agency.

The values placed on personal property has to be realistic. Depreciated to current value and well documented. 10 to 20 cents on the dollar unless an item is less than 6 months old. Electronics, bedding, window coverings, canvas, books, tools, spare parts, dishes, silverware etc are all personal property. 10 to 20 cents on the dollar unless it's less than 6 months old, but it adds up if you think about all the junk that comes with a used boat purchase.

 

[Pau Hana]

Pacific Maritime Title in Seattle or Marine Doucmentation Services in Anacortes are both top notch for helping you wade thru the paperwork maze.

 

[Beaverlake]

If $80k in sales tax you’re in the $800k purchase price range? If a cash sale then documentation may not be required but for a loan and possibly for insurance you will need to get the boat registered with the coast guard. Are you dealing thru a broker or private sale? If a broker (on either side) they should be providing g you with guidance. Is this your first boat in the PAC NW?

 

[magna 6882]

This would be a cash sale and dealing factory direct so no broker. It seems folks find registering there boat advantages . We have had smaller planing type boats but didnt venture out to far since we didn't like getting banged around so much so this will be our first cruising type of boat.We have a lot to learn but that's part of the fun.

 

[Shrew]

Don't confuse Coast Guard Documentation (title) with State Registration. These are mutually exclusive topics. If you are in a non-title state, many lien holders require they be added as a lien holder on a title. In these cases, CG documentation comes into play. CG Documentation also is typically required with most international travel.

State registration is required if you keep the boat in any state for longer than their documented length of time. It is not uncommon to have to register a boat in multiple states. Sales tax is typically paid to only one state. Some states work around this by implementing a Use Tax during registration.

CG Documented vessels don't display ANY state registration numbers. Just state registration stickers.

 

[GoneFarrell]

I went through a version of this for my boat.

"Back then," when CG documentation had a long lead time, Washington DOL issued my registration with a boat number until I could show CG documentation. With that, my boat number was removed from registration and I took the number off the boat.

So, that is one path forward for you if you don't have a CG document number out of the box.

The other new complication would be regarding access to the DOL desk face-to-face, I don't know how socially-distant that is right now, maybe you have to call for an appointment.

 

[DDW]

Did I miss something? 0.05% of 800K is 400? not 4000?

 

[Pau Hana]

General tax estimate for vessel sales in the Seattle area is 10%.

 

[Ka_sea_ta]

You pay the sales tax rate for the county / city where the sales took place. I.E. Anacortes is 8.7% Seatttle is 10.1% or a savings or roughly a $11k savings. It doesn't mater where you reside or moor the boat only where the business that made the sales is located... Hence many Seattle based boat dealers have offices in Anacortes. I think that for purchases made out of state where no sales tax is paid, the tax is called a use tax and is equal to the sales tax of that local area...

 

[Shrew]

You pay the sales tax rate for the county / city where the sales took place. I.E. Anacortes is 8.7% Seatttle is 10.1% or a savings or roughly a $11k savings. It doesn't mater where you reside or moor the boat only where the business that made the sales is located... Hence many Seattle based boat dealers have offices in Anacortes. I think that for purchases made out of state where no sales tax is paid, the tax is called a use tax and is equal to the sales tax of that local area...

Partially true. It doesn't matter where the owner resides. Sales tax on a boat is dictated by where it is registered. Where the boat is registered is dictated by where it resides.

I live(d) in NH where there is no tax. I bought a boat in CT and registered it in NH, I did not pay taxes. I bought a boat in CT and registered it in CT I paid taxes. I bought a boat in CT and registered in RI, I did not pay taxes.

 

[Ka_sea_ta]

Partially true. It doesn't matter where the owner resides. Sales tax on a boat is dictated by where it is registered. Where the boat is registered is dictated by where it resides.

I live(d) in NH where there is no tax. I bought a boat in CT and registered it in NH, I did not pay taxes. I bought a boat in CT and registered it in CT I paid taxes. I bought a boat in CT and registered in RI, I did not pay taxes.

It's different in WA. The state wants their share, the only option you have to reduce the sales tax is in which city/ county the deal is consummated in as the state has a fixed sales tax of 6.5%, the cities and counties all add on to that amount... some more then others.

 

[twistedtree]

Did I miss something? 0.05% of 800K is 400? not 4000?

It was a typo in the tax rate. The annual excise tax is 1/2 of one percent, or 0.5%, or 0.005. So $4k per year on an $800k valued boat. And that's paid every year, in addition to the one-time sales or use tax when the boat is purchased or brought into WA.

 

[Spinner]

In the example given, that tax bill would be for the first year of purchase. The excise tax paid goes down every year. The value of the boat is depreciated annually for tax purposes.

 

[twistedtree]

In the example given, that tax bill would be for the first year of purchase. The excise tax paid goes down every year. The value of the boat is depreciated annually for tax purposes.

Do you recall what the depreciation rate is? I was told once, but don't remember.

 

[magna 6882]

Thanks guys for all the help. Made contact with norm in Anacortes and he is good to go. I recall him saying an 18 year depreciation rate. I feel i have all the players in line. I could not have found the high quality of people had it not been for the members of this forum.
I hope some day to be able to provide help to others myself.
Rod

 

[Shrew]

It's different in WA. The state wants their share, the only option you have to reduce the sales tax is in which city/ county the deal is consummated in as the state has a fixed sales tax of 6.5%, the cities and counties all add on to that amount... some more then others.

https://dor.wa.gov/sites/default/files/legacy/Docs/Pubs/WatercraftVesselTax/BoatBroc.pdf


Nonresident boats purchases
Sales tax exemptions are available to a nonresident
who purchases a boat in Washington for use outside
the state if:

I guess if you live in the state and don't intend on keeping the boat in the state, don't buy it the state. Nice

 

[w8n4sun]

Really excited for you and your new adventures on the water. Please keep us posted with new boat pics and outings. Let us know when you get to EBM so we can give you a proper welcome!


Btw, I'm still not happy about paying excise tax on a boat we already paid sales tax on. It's quite a sum on an annual basis. The amount of bourbon I could buy with those funds?!?

 

[Airstream345]

Really excited for you and your new adventures on the water. Please keep us posted with new boat pics and outings. Let us know when you get to EBM so we can give you a proper welcome!


Btw, I'm still not happy about paying excise tax on a boat we already paid sales tax on. It's quite a sum on an annual basis. The amount of bourbon I could buy with those funds?!?

You and me both my friend!

 

[syjos]

Really excited for you and your new adventures on the water. Please keep us posted with new boat pics and outings. Let us know when you get to EBM so we can give you a proper welcome!


Btw, I'm still not happy about paying excise tax on a boat we already paid sales tax on. It's quite a sum on an annual basis. The amount of bourbon I could buy with those funds?!?

You live in Washington State, the land of Government Tax Opportunity.

 

[Salish Nomad]

We like Norm, and have used his services for several boat transactions.

 

[Shifty]

We just completed this paperwork for our NP coming into Blaine (using Pacific Maritime). PM me if you want to chat about anything.

 

[Shifty]

One more thing, while you won’t have WA State registration numbers on your bow, you will still need to display the annual sticker (your “tabs”). Also, the Coast Guard requires you to permanently affix your registration number on the hull or a bulkhead inside the boat.

https://www.dco.uscg.mil/Our-Organi...nal-Vessel-Documentation-Center-FAQ/#anchor12

 

[78puget-trawler]

Misread the above.

 

[Rich wilmer]

Baught my ocean 50 in wash
Took a 6 mo cruise permit slip it in Canada vost guard reg.about 35 $ no sales tax run back ad forth between the states