Yes, two entirely separate issues are your personal residency and the location of your boat. As to the boat, he should figure out where he wants to use and keep it. Then see the tax situation.
Home port choices
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Yes, two entirely separate issues are your personal residency and the location of your boat. As to the boat, he should figure out where he wants to use and keep it. Then see the tax situation.
Dcbeach
Veteran Member
BandB have it right according to my location. I live in NY but keep the boat in Ct.
I bought the bougt the boat in MD, paid the 5+ percent sales tax to MD, then moved the boat 9 months later to Ct. After 90 days I sent in my registration app to Ct, paid the fee, and received my Reg. To be clear, the registration is due to the state where the vessel is used for 60-90 days (read docked). No additional sales tax was requested. Note the vessel is documented, but a “usage fee” for the registration is still required. Ct gets $365 per year, my Maryland was $28.
I bought the bougt the boat in MD, paid the 5+ percent sales tax to MD, then moved the boat 9 months later to Ct. After 90 days I sent in my registration app to Ct, paid the fee, and received my Reg. To be clear, the registration is due to the state where the vessel is used for 60-90 days (read docked). No additional sales tax was requested. Note the vessel is documented, but a “usage fee” for the registration is still required. Ct gets $365 per year, my Maryland was $28.
kthoennes
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That's easy. No contest. South Dakota. My annual state registration is $40 per year. We don't really care if you actually live here, and we don't care if you keep the boat here. Thousands of RV'ers do the same thing. And I think we just passed New York for the largest amount of trust funds domiciled here, literally in the trillions. (On the other hand, most other states take a keen financial interest in where you keep your boat. Even Nebraska on the far side of the Missouri River makes tax collection noises if we South Dakotans spend too much time on their shore...)
Nomad Willy
Guru
There’s only one home port for every boat.
That’s where she’s moored and where she most often comes to port.
It has all to do w the boat and nothing to do w where the owner lives. It’s where the boat lives.
That’s where she’s moored and where she most often comes to port.
It has all to do w the boat and nothing to do w where the owner lives. It’s where the boat lives.
twistedtree
Guru
The odd variation to all this is a boat that doesn't have a single place of use, docking, or mooring. A certain number of cruising boats move around on a regular basis, and don't have anything that resembles a principal place of use. Our boat was like that, and the next one will be too.
In that case where do you register, and who's laws do you follow?
For our last boat we picked our state of residency, but the boat never came within 2500 miles of it. But it seemed a slightly better answer than randomly drawing a state out of a hat. As far as the boat's concerned, and where we used it, there was no compelling reason to pick any one state over another. So under those circumstances, why not pick one that is logistically and financially favorable? Companies do it all the time when setting up their headquarters.
In that case where do you register, and who's laws do you follow?
For our last boat we picked our state of residency, but the boat never came within 2500 miles of it. But it seemed a slightly better answer than randomly drawing a state out of a hat. As far as the boat's concerned, and where we used it, there was no compelling reason to pick any one state over another. So under those circumstances, why not pick one that is logistically and financially favorable? Companies do it all the time when setting up their headquarters.
Works fine if you don't intend to exceed the time requiring registration elsewhere, whether 60 or 90 days depending on the state. We registered one boat in FL nearly a year before it ever saw Florida and another months before. However, we knew FL was their ultimate destination.
kthoennes
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Rhode Island. Very boat friendly. Plus my KK is headed there and they can be friends.
You're right, next best state after South Dakota for boats. In fact we took formal delivery of our boat out of Somerset well over the state line into RI to avoid ridiculous Mass sales taxes, although we were probably way overly cautious and no one would have really known the difference. Married to a lawyer...
Bryant
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Home Port
If you are going to live on the boat, why not Port it in Florida and live here. Saving yourself Cs income tax? We have none. There are Nice Marinas in The Jacksonville area that are pretty safe from hurricanes and you have immediate access to the ICW. Bahamas and Keys to the South, Outer Banks to the North.
If you are going to live on the boat, why not Port it in Florida and live here. Saving yourself Cs income tax? We have none. There are Nice Marinas in The Jacksonville area that are pretty safe from hurricanes and you have immediate access to the ICW. Bahamas and Keys to the South, Outer Banks to the North.
Howard Arner
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Good luck with it all and so sorry for your loss. Wife and I lost our home in Irma, flooded. So, we decided to build a new home and purchased a Marine Trader Labelle Sundeck 43 and docked it behind the house and we now live on that whilst we begin to build a new home on the lot. Losing stuff is an adventure, it hurts but you can always get more stuff, and now you live on a BOAT! that is the way we look at it anyway. The cats just wish we were back in the house. They are slowly becoming boat cats.
BTW, the FLA limit on sales tax is like the first 18K I think. mine was not that bad, I live in Duval which is 7%. Writing it off as we used to run our business from the house, now we run it from "The Boardroom".
BTW, the FLA limit on sales tax is like the first 18K I think. mine was not that bad, I live in Duval which is 7%. Writing it off as we used to run our business from the house, now we run it from "The Boardroom".
mattinri
Veteran Member
I'm in the same situation. Just retired and a Rhode Island resident, but planning to sell the house here and travel on the boat I'm in the process of buying. I plan to initially document and register (yes, RI requires registration sticker in addition to documentation) in RI and will not have a sales tax initially. Once I reach Florida next winter I plan to establish residency there to avoid RI income tax and pay the $18K sales/use tax to Florida for the big boat and whatever it takes for both dinghies. I believe this makes everyone happy and everything is above board. The savings in RI income tax will pay for the sales tax in Florida in a little over two years.
O C Diver
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The previous owner moved her South around the fall of 2015 or so. Believe I saw her at Palm Coast Marina in February of 2016 while visiting a friend their.
Hope you enjoy her!
Ted
kthoennes
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EIGHTEEN THOUSAND?! Yikes, see, right there, that's why these discussions about taxes and registration and home ports and time in X state's waters keep breaking out on this forum over and over again. I just paid my $26 federal doc renewal (which isn't even necessary for me for now but what the heck, it's more nautical, arrr matey) and a couple months ago I paid my $40 state reg. Peanuts, chump change, I paid more for a new thermistor in my refrigerator last season. There's no point fretting or jumping somersaults trying to avoid piddly registration fees, but $18K in taxes (sales or property or use), now that's worth some somersaulting. Sheesh, my boat may be a popsicle on jackstands right now but at least there are no taxes like that here.
So it's cheaper to own a boat you can't use half the year. It would be even cheaper to not own one at all. Most people aren't in South Dakota. $18k is the maximum sales tax in FL, which is on a $300,000 boat. Same on a $30 million boat. Less than nearby states and no property tax on a boat, no income tax.
OP
OP
Selidster
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You all have been super helpful. Heading back to Palm Coast, FL where she is moored in a couple weeks. Bought the extension from the state so I have another four months to sort it all. I appreciate the comments. Thanks all.
Wolfhound
Member
See an experienced tax lawyer or CPA who's well-acquainted with boating matters. Tax evasion is unlawful, but tax avoidance -- arranging one's affairs so as to legitimately minimize taxation is rational and wholly lawful.
You might consider California. Yes I said California. If it is CG registered, you do not register in California. If the boat can be documented as being used out of the state for 180 days of the first year, you can apply for a sales/use tax exemption, once granted this exemption is permanent, even if you later bring the boat to California. The county listed will likely try to get property tax, but if the boat isn't there tell them so and you don't owe any.
Each state additionally has laws about how long you are allowed to keep it there before taxes are assessed. Some of them quite grabby. Pay attention to the jurisdiction and keep moving. I've owned the current sailboat for 10 years, have paid $0.00 in taxes, all completely legal. CG reg costs $25 each year - that's it.
Each state additionally has laws about how long you are allowed to keep it there before taxes are assessed. Some of them quite grabby. Pay attention to the jurisdiction and keep moving. I've owned the current sailboat for 10 years, have paid $0.00 in taxes, all completely legal. CG reg costs $25 each year - that's it.
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