Needing some opinions

[windmill29130]

There are major differences between tax evasion and tax avoidance. Tax avoidance is legal.

 

[psneeld]

Moonstruck's hailing port is Charleston, SC. Wonder why?

For my friend...what's up with the crazy "personal property tax" on boats...I know he knocked his way down...and other tricks?

 

[windmill29130]

Yeah but when my buddy moved there with his 42 Catalina...his annual personal property tax was going to be an annual tax that was the same as most one time sales taxes in other states...

Then after months of research and wrangling..there are ways of reducing it to a fraction...but it still is going to be more than a 6% sales tax if he remains there with that boat for say 10 years.

Can't say exact numbers as I forget...but this starts to sound like the classic what states are better for taxes thread....it all depends on your personal financial situation.

As bad a Jersey is for taxes...they don't tax my military retirement and living on a boat I don't have their huge property taxes. So for me it's an OK state to live in...for most retirees with a taxable pension that want to live in certain areas...their property taxes alone exceed $20,000/year, let alone their income taxes.....

Yes, property taxes are another whole can of worms! It's amazing how all the states are different when it comes to sales, property, and income taxes, yet they all claim to be broke and need more tax revenue. In addition, they are all so arrogant and think their system is the best. I AVOID (as Moonstruck said avoid not evade) all the taxes I can.

 

[windmill29130]

For my friend...what's up with the crazy "personal property tax" on boats...I know he knocked his way down...and other tricks?

​

Boats are taxed on 10.5% of their assessed value – No, the tax is not 10.5% of the boat’s value – only 10.5% of the boat’s value is taxed. The local millage rate determines the actual tax. This works out to about about 1.2% of the boat’s value in some counties. The 10.5% rate is set in the State’s Constitution.
In certain counties, a qualifying boat may be claimed as a primary residence and the tax is based on 4% of the boat’s value. A qualifying boat may be claimed as a second home and the tax is based on 6% of the boat’s value. Individual counties may also reduce the tax to the 6% level on all boats by local county ordinance.

 

[psneeld]

Boats are taxed on 10.5% of their assessed value – No, the tax is not 10.5% of the boat’s value – only 10.5% of the boat’s value is taxed. The local millage rate determines the actual tax. This works out to about about 1.2% of the boat’s value in some counties. The 10.5% rate is set in the State’s Constitution.
In certain counties, a qualifying boat may be claimed as a primary residence and the tax is based on 4% of the boat’s value. A qualifying boat may be claimed as a second home and the tax is based on 6% of the boat’s value. Individual counties may also reduce the tax to the 6% level on all boats by local county ordinance.

Sounds like he figured most of that out...he was going to hang himself when he first heard it was (mistakenly) 10.5% of the boats value every year.

I didn't care...he's in Saudi now making as much every year with oil companies than I made in a career in the USCG......I say let him pay!

Just kidding....

 

[Moonstruck]

For my friend...what's up with the crazy "personal property tax" on boats...I know he knocked his way down...and other tricks?

My last stay in SC was from May to Nov. 1. That's when insurance rates go down in Florida, and before the marinas report boats in harbor on Dec. 31st.

Documented SC boats have to pay the sales tax, but do not have to be registered. Moonstruck is legal in SC, and she is registered in Florida. So, legal there as well. On the ICW Hilton Head is about 125 miles above the Florida line.

 

[gwkiwi]

Move to South Carolina, the maximum amount of sales tax on any purchase is $300!
Maximum Sales Tax

I bought a boat in SC several years ago and was amazed at that tax cap.

The question before the courts is that SC has a 6% ? sales tax with a $300 cap, does that mean other states that you may travel to inexcess of the 60 or 90 day rule such as FL will recognize the percentage or the dollars paid from your home state.

I would hope that the court rules in favor of the percentage rule because it is that states discretion to cap their sales tax - but we will see.. I wouldnt want to be the test case in that ruling..

But from memory I beleive SC has a hefty property tax like CA does it not ?

 

[Moonstruck]

But from memory I beleive SC has a hefty property tax like CA does it not ?

The last time I checked a boat is taxed SC same as a home.

 

[windmill29130]

The last time I checked a boat is taxed SC same as a home.

Only if you claim it as a first or second home, but you have to be resident of SC.

 

[kpinnn]

I think I finely got the correct answers regarding my being able to keep boat in Florida after a purchase in Florida. It really is as simple as I thought it should be. I guess if you are trying to avoid or reduce a sales tax it would be complicated. That was not my intention. I planned on paying a tax somewhere but only once. I spoke to a John Cacciatore it is simple. I can pay the tax to florida. The boat is still documented in Mass. It appears Mass has a reciprocal agreement with florida so upon returning to Mass I would pay only the added 5%. Florida is 6% and Mass is 6.5%. In the county I purchased the boat there is a $25.00 sur charge and a registration fee. I believe I was told it would be about $135.00. For this I am not rushed to get out of Florida. his works fine for me. I was told I would be fined because I did not do the sales tax within the 10 days allowed but I bought a 90 day sticker for $50.00 so as long as I pay the tax within the 90 days there is no problem. If you go over the allowed period ther is fine of 100% of the tax. I still want to be sure Mas has an agreement ith Florida and double check the registration fee.

 

[Chrisjs]

KPinn
Glad you were able to confirm what I thought was the case. I believe it is the same when you buy a motor vehicle out of state. Just make certain you have all the documentation required for MA when you get back. I would double check with MA tax people.

 

[windmill29130]

So, if you buy a boat in Florida, pay the sales tax in Florida but document it in another state, you can stay in Florida as long as you want?

 

[psneeld]

So, if you buy a boat in Florida, pay the sales tax in Florida but document it in another state, you can stay in Florida as long as you want?

the way I read it as long as you register it there and keep it current ...yes

the USCG doesn't care where you live or the home port...as long as somewhere you have a legal address.

 

[markpierce]

You can document your boat anywhere ("home port") in the U.S. It needn't be where you live or where you keep your boat. State taxes, if any, and registration, if required, will depend on which state the boat is kept.

 

[SCOTTEDAVIS]

So, if you buy a boat in Florida, pay the sales tax in Florida but document it in another state, you can stay in Florida as long as you want?

Yep, you be shiny!!