Home port choices

[Selidster]

I recently bought Georgia Girl hull #16. I also lost everything to the Carr Wild fire in CA, home, business, everything. Rather than rebuild I bought Georgia Girl. Since I have no home anymore I can call home anywhere. Any recommendations as to the cheapest state to register the boat vs state taxes? I have 180 days to sort it before Florida sales tax becomes due. Any advice is greatly appreciated.

 

[Fish53]

Check New Hampshire, I'm not sure but my wife thinks they don't have excise tax, we're in Maine and we do.

 

[DavidM]

Sales or actually use tax is based on the state where it is docked and where you use it. You just can't pick a state like RI with no sales/use tax and register it there. You will still be hit with Florida sales/use tax if you keep it there.


David

 

[Larry M]

We set up an LLC years ago to purchase a boat while we tried to figure out the exact same thing. We picked Oregon which has no sales tax and was relatively inexpensive to register a boat. I had a room mate from college who lived there and we used his address. Once we got settled, we sold the boat back to us, re-documented and dissolved the LLC.

Once you come up with a tentative plan, you might want to consult with a tax attorney or accountant. We did and it helped.

 

[BandB]

I recently bought Georgia Girl hull #16. I also lost everything to the Carr Wild fire in CA, home, business, everything. Rather than rebuild I bought Georgia Girl. Since I have no home anymore I can call home anywhere. Any recommendations as to the cheapest state to register the boat vs state taxes? I have 180 days to sort it before Florida sales tax becomes due. Any advice is greatly appreciated.

You can't just randomly designate your home or where the boat is to be registered, so my first question to you would be where do you intend to make your home and where do you intend to keep your boat?

Until you legally change your residence, you remain legally a resident of California. This has nothing to do with the boat and if you want to change that, then we can advise you some ways of doing so.

 

[Selidster]

Thanks I'll give it a look.

 

[Selidster]

Well at this stage, I can pick the most cost effective location. The boat will be my residence and I plan on cruising the Bahamas then the loop.
I will have no land based home. To say I'm flexible is accurate.

 

[BandB]

Well at this stage, I can pick the most cost effective location. The boat will be my residence and I plan on cruising the Bahamas then the loop.
I will have no land based home. To say I'm flexible is accurate.

But then you need to reestablish residency. You're still a California resident. Where are you living today?

Some steps needed and the reasons why.
-Drivers license and insurance changed.
-Physical location and legal address changed
-Bank account opened or changed
-Voting registration changed
-Physical location of both you and anything you own.

Why?
-Until you establish somewhere else as your legal residence, you're subject to California income taxes, property taxes, and other.

Florida and Texas are easy and used by many boaters and RV'ers. There are places in both states specializing in helping set up up. However, until you make the moves to change, the old state still has a hold on you.

This is all separate from where you register and keep the boat but can play a role. May be wise to consult an attorney. I don't know your income or if you have insurance settlements coming or anything else about you.

We went through a relocation from NC to FL in 2012. We accomplished it all in less than a week but that was a rapid pace. NC made us provide proof of the new residency with the things I mentioned above as they wanted to tax out income after the move.

 

[menzies]

Don't know how much you paid for her, but the maximum sales tax on the purchase of a watercraft in Florida in $18K. Just in case you were looking at the full 6% plus county discretionary, if any, across the total value of the boat.

And also that is deductible on your tax return.

 

[DavidM]

OK, so you are going to keep moving. I would federally document the boat, so no state registration. Then if you don't stay more than 90 days in one state, even states with sales tax then you don't have to pay any.


I did this several years ago. Bought the boat in Florida, federally documented it and moved it out of state within 90 days and kept moving. I finally sold it in NC and never paid any sales tax.


David

 

[BandB]

Don't know how much you paid for her, but the maximum sales tax on the purchase of a watercraft in Florida in $18K. Just in case you were looking at the full 6% plus county discretionary, if any, across the total value of the boat.

Also, note that there is no property tax on a boat in FL.

 

[DavidM]

And also that is deductible on your tax return.

Only if it is within the $10,000 federal limit for sales and local taxes- courtesy of the new Trump tax law.


David

 

[dhays]

OK, so you are going to keep moving. I would federally document the boat, so no state registration. Then if you don't stay more than 90 days in one state, even states with sales tax then you don't have to pay any.


I did this several years ago. Bought the boat in Florida, federally documented it and moved it out of state within 90 days and kept moving. I finally sold it in NC and never paid any sales tax.


David

Don’t most states figure 90 days during a years time as opposed to 90 consecutive days?

 

[BandB]

Don’t most states figure 90 days during a years time as opposed to 90 consecutive days?

Every state is different. Some 90 days, some 60. In many situations, your state of residence plays a role too.

 

[JohnS]

Also, if you are actually changing residence, or have income that is not location dependent, such as investment or consulting, Florida does not have a state income tax.

 

[caltexflanc]

I would federally document the boat, so no state registration.

This is not true in most states now.

One is kidding oneself if you think you are going to evade the taxman. You can run but you can't hide. Pick a state to have the boat actually domiciled in and move on.

Home port on your documentation means zilch.

 

[DavidM]

This is not true in most states now.

One is kidding oneself if you think you are going to evade the taxman. You can run but you can't hide. Pick a state to have the boat actually domiciled in and move on.

Home port on your documentation means zilch.

Most states don't pay any attention to the home address of where the boat is federally documented so it is a good way to stay off of their radar. If you register the boat in a state with sales/use tax you usually have to pay it right there and then.

Also don't stay at any marinas on January 1 if the state has a personal property tax on boats. In many states the marinas have to report all vessels docked there on January 1 to the state and they use that report to track you down and ding you for the tax.

David

 

[caltexflanc]

Most states don't pay any attention to the home address of where the boat is federally documented so it is a good way to stay off of their radar. If you register the boat in a state with sales/use tax you usually have to pay it right there and then.

Also don't stay at any marinas on January 1 if the state has a personal property tax on boats. In many states the marinas have to report all vessels docked there on January 1 to the state and they use that report to track you down and ding you for the tax.

David

If they find your boat in their state they will pay attention, often times at the city level. Time of year makes no difference in most of them. This I know.

In the bigger scheme of things, we are talking chump change once you get past sales tax. Some folks spend thousands moving their boat around and making maneuvers to avoid a few hundred in taxes.

And by the way, you contradicted what you originally said... may want to clean that up.

 

[Selidster]

I'm not trying to skate out of taxes. I just haven't a home at the moment, so I can choose the most advantageous location. I appreciate the comments but my goal isn't to run from taxes or fees but to choose a good home port. Thank you all for your comments.

 

[BandB]

I'm not trying to skate out of taxes. I just haven't a home at the moment, so I can choose the most advantageous location. I appreciate the comments but my goal isn't to run from taxes or fees but to choose a good home port. Thank you all for your comments.

You're tossing around a dangerous two words that have many varied meanings and that is "home port." Let's try some different terms if you don't mind with specific meanings. You need two things which may or may not come together.

1. A state of residence. Although you don't have a home right now, for legal purposes you do, the State of California remains your state of residence.

2. A principle location for your boat. The place you keep it most and decide to register it and pay taxes on it.

These may or may not be the same. For example if you docked your boat in FL today but didn't change your legal residence then they'd be 1. California and 2. Florida. On the other hand, if you moved your legal residence to St. Brendan's Isle and kept your boat in Charleston, then they'd be 1. Florida and 2. South Carolina. None of this is "home port."

 

[Spinner]

At least some states require registration even on documented boats. Washington State requires the same registration on both documented and undocumented boats. The sole difference is that registration numbers are not displayed on documented boats (although the annual registration sticker is displayed ).

 

[denverd0n]

Agree that we need to get the terminology clear. "Home port" is a specific term, used by the Coast Guard, to identify your boat. It must be painted on the boat, along with the name. It does not have to have any relationship at all to where you live, where the boat lives, where you keep the boat, or anything else like that. It is -- for all practical purposes -- a random location.


That's why you need to be clear what you're talking about, especially if you use the term "home port" to refer to anything other than the location that you have painted on your boat, and that you used when documenting it with the USCG.

 

[menzies]

At least some states require registration even on documented boats. Washington State requires the same registration on both documented and undocumented boats. The sole difference is that registration numbers are not displayed on documented boats (although the annual registration sticker is displayed ).

Same with Florida.

 

[HiDHo]

Selidster, Check out the Tennessee river area for your home port. Fresh water, marinas with covered docks, and access to salt water in days. Very reasonable dockage rates, (live aboards welcomed ),boat registration fee’s. Also your boat insurance cost will be better out of the hurricane areas.

 

[IronZebra]

Selidster, Check out the Tennessee river area for your home port. Fresh water, marinas with covered docks, and access to salt water in days. Very reasonable dockage rates, (live aboards welcomed ),boat registration fee’s. Also your boat insurance cost will be better out of the hurricane areas.

There are two nice marinas on Pickwick Lake at the Tennessee and Mississippi boarder. Good river cruising. No state income tax in Tennessee. Mississippi has state income tax only on earned income in Mississippi, so no income tax on retirement funds, out of state pension, or Social Security.

From Pickwick Lake is a short jaunt down the Tenn-Tom to and from the Gulf.

 

[Wxx3]

Your on the east coast.
Bahamas in summer, New England in winter.

I really liked Rhode Island while we had the boat there for half a year in Providence.

Check it out.

 

[O C Diver]

I recently bought Georgia Girl hull #16.

Just curious if Georgia Girl is a 42 Krogen? There was one with that name on the hard at Scott's Cove Marina in Chance, MD while I was refitting my boat in 2015 - 2016. I talked to the owner a few times.

Ted

 

[Mako]

selidster it sounds like you're in a good position financially, either retired or able to work remotely. So you're basically asking what is the best water-front State to live in? So you can consider many factors when deciding:

• State income tax free? (Texas, Florida, Tenn., etc)
• Sales tax (State + city)
• Cost of living in general
• Weather
• Marina fees
• Quality of life (cultural activities, big mega malls, quietness, etc.)

If you just want to have no sales tax on your boat, then consider Alabama. Document your boat as commercial and pickup a cheap license from the State as a mussel-collector or something, and you're exempt.

You can also consider becoming an expat. I've been for more than a decade. There are tax and legal issues to consider, but if you're planning on traveling overseas extensively, then there are advantages.

 

[Seevee]

Only if it is within the $10,000 federal limit for sales and local taxes- courtesy of the new Trump tax law.


David

ALL taxes combined have that limit (Sch A), on personal returns. Business is not affected.

 

[Seevee]

You're tossing around a dangerous two words that have many varied meanings and that is "home port." Let's try some different terms if you don't mind with specific meanings. You need two things which may or may not come together.

1. A state of residence. Although you don't have a home right now, for legal purposes you do, the State of California remains your state of residence.

2. A principle location for your boat. The place you keep it most and decide to register it and pay taxes on it.

These may or may not be the same. For example if you docked your boat in FL today but didn't change your legal residence then they'd be 1. California and 2. Florida. On the other hand, if you moved your legal residence to St. Brendan's Isle and kept your boat in Charleston, then they'd be 1. Florida and 2. South Carolina. None of this is "home port."

BandB,

If one did the St. Brendan's Isle for their personal address, they would still be liable for state use tax on the boat, regardless of where it was kept, correct? That's the way I read the statues. So, perhaps not a good choice.

Are the other "addresses" similar to St. Brendan's Isle, in more friendly states, that offer as much? I know one could get a private PO box most anywhere, but there are holes in doing that.

So, perhaps good advise for Selidster would be to find a state that has no personal income tax and a state for the boat that has no property tax, no boat use tax. Not sure where that would be.