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Old 09-22-2017, 04:52 PM   #41
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So far, there is a bunch of info I either am misinterpreting or disagree with.

If talking thousands of dallars in possible taxes, I suggest calling a vessel title service to get better info (one in each state you are dealing with), and if talking tens of thousands in possible taxes, get an appropriate attourney.

I have bought and registered in several different states and some of the info posted so far does not apprear to be entirely correct. I foudt more posts will make it clearer.
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Old 09-22-2017, 05:46 PM   #42
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So far, there is a bunch of info I either am misinterpreting or disagree with.

If talking thousands of dallars in possible taxes, I suggest calling a vessel title service to get better info (one in each state you are dealing with), and if talking tens of thousands in possible taxes, get an appropriate attourney.

I have bought and registered in several different states and some of the info posted so far does not apprear to be entirely correct. I foudt more posts will make it clearer.
I fully endorse what you've said and once again suggest a documentation service (which you refer to as a vessel title service). If enough money involved, then verifying their answer through an attorney or accountant in the state in question. They deal with documentation and registration daily and know the intricacies that seem very minor but could cost thousands.

A lot of general information given here but each state is different and you need specific information to the states you are involved with and to your situation including job, work location, home location, other assets.
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Old 09-22-2017, 06:33 PM   #43
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Jim,

Sales tax for a boat and income tax have nothing to do with each other. One is a tax for making money and the other is a tax for spending money.

As for residency, I could argue to make your move now and establish FL residency. Buy, rent or get something down there. Rent a room from a friend, get your license, bank accounts, etc. there. Or perhaps find another state that's user friendly for retirees, but waiting to the last minute could have some issues.

Search out residency requirements and plan accordingly, especially if your goal is to move out and be a boat nomad.

Also, just moving into a rental may not help much, but it's a step.
Sorry if my post wasn't clear.

Just trying to make the point that if one plans on being a nomad, then perhaps they should remember that most states will tax their income where they reside. Some states may also have personal property tax on boats as well. Thus, perhaps there is more to consider than just the payment of sales tax on the purchase of the boat if one plans on being a nomad.

After living in out house for the past 24 years, it is time for us to sell. We plan on renting a couple of years until I retire. Just before I retire, we will set up residency in a state that doesn't charge income tax so that we can cash out one of my retirement accounts.

Then we will spend the next 18 - 24 months travelling to Europe and travelling the east half of the great loop, running down to Key West and over to the Bahamas.

After that we will probably buy our retirement house.

Jim
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Old 09-22-2017, 06:40 PM   #44
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Sales tax laws are more complicated than you think. If an Oregon resident buys a California registered boat they must pay California sales tax, even if they take possession of the boat in Oregon and register it in Oregon. Talk to an expert first.
Yep! I started with the above advice. Talk to an expert first.
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Old 09-22-2017, 06:46 PM   #45
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Do not count on a title service for your sales tax advice. Title services or escrow services do not collet or pay sales tax. The broker collects the sales tax in most cases and they are not tax experts either.
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Old 09-22-2017, 06:49 PM   #46
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Not always necessary to talk to experts first, but once a question becomes complicated to the point where forum advice is all over the place, it becomes hard for anyone poster to clear the air.

At that point, break free of a particular thread until a few basics are settled and start again. That way the mass of bad advice or incorrect suggestions can be ruled out with specific references..
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Old 09-22-2017, 08:16 PM   #47
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Do not count on a title service for your sales tax advice. Title services or escrow services do not collet or pay sales tax. The broker collects the sales tax in most cases and they are not tax experts either.
They may not collect sales tax, but the documentation services here are expert in knowing the tax implications of all the possibilities as tax savings are one of the reasons many owners turn to them.
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Old 09-23-2017, 08:45 AM   #48
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Some states want a use tax for wetting the bottom in their state waters.

In CT a CT sticker , and fees , is required just for use after a certain number of days.
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Old 09-23-2017, 12:38 PM   #49
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Some states want a use tax for wetting the bottom in their state waters.

In CT a CT sticker , and fees , is required just for use after a certain number of days.
Most states require registration after a certain number of days. Most common is 90 days but many are 60 days. Those requirements are largely ignored but some states aggressive in checking marinas.
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Old 09-23-2017, 03:01 PM   #50
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What state will the trawler be registered and kept / used in? Even if your trawler is documented as opposed to registered, the state you call home will want sales tax. If living aboard, you probably want to register it in the state you will be living in. Some states have laws requiring the equivalent of sales tax if they are your primary use state or reside in the state more than a certain number of days in a calendar year.

Ted
This.
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Old 09-23-2017, 04:22 PM   #51
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Best to talk with a knowledgeable tax attorney. Regardless, the authorities will be after for any use tax (same as sales tax but purchased from a non-business entity) on the boat's purchase if your new boat will be in a boat-purchase-taxing jurisdiction.

In general, taxing authorities assume if you purchase anything, you can also afford and will pay the assessed taxes.

That's the cost of "civilization" and supporting those unable to fully contribute to society.

While I purchased a boat from China, I paid use tax to the State of California equivalent to a brand-new, mid-sized automobile.
Well put!
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Old 09-23-2017, 06:03 PM   #52
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Legal and proper avoidance of sales tax can be done. I bought Bay Pelican in 1999 and have yet to pay sales tax. She has been registered in Illinois as well as Florida. I have had to make sure I have not run afoul of any state's "residency" requirements during the 10 years we cruised in the US.

The critical thing was determining the requirements of each state and then making sure that I did not violate the law. In a couple of states I got written statements from the appropriate authority that my storage of the boat in that state would not generate tax treatment. In many states storage or repair are not counted towards "residency".

I must say that I never tried to get away with anything as in they won't catch me. I followed the letter of the law.
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Old 09-23-2017, 09:05 PM   #53
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Hi all
New to forum and have a sales tax question I live in NY state and
Have an 8 percent sales tax, when purchasing a used
Trawler will I have to pay the tax
I will be selling my house and living on board travling
Me too.

Here is the rule, if the boat is ever in NY, you must pay the full sales tax.

If NEVER in NY, not once, you are not liable for tax.
You may need proof the boat has NEVER been in NYS.

All this information is on the NYS web site

Good luck
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