State Use Taxes

[denverd0n]

Florida may be the next spot this winter.

If you have owned and used the boat in another state for more than 6 months, then you will not owe Florida any sales/use tax when you move the boat here.

Most of the E & W coastal states have spending problems. Giving them more money is like giving booze to an alcoholic.

One of my favorite P.J. O'Rourke quotes... "Giving money to politicians is like giving liquor and the car keys to a teenager!"

...if the boat was purchased more than 6 months and 1 day before it entered Florida there is no sales tax due.

True, with the proviso that the boat must have been USED during those 6 months. Florida has prosecuted, and won, at least one court case that I know of where a person bought a boat in Florida, immediately moved it out of the state, then let it just sit there for 6 months and a day before bringing it back. The state argued (and, again, won) that the fact that they did not use it during the 6 months outside of the state, was proof that they never intended to use it anywhere but Florida, right from the start. So they owed use tax.

So, the Florida rules are really pretty simple, in most cases. Buy a boat in Florida and move it out of the state right away and you will not owe FL sales tax. Own and use your boat outside of FL for more than 6 months and you will not owe use tax when you bring it here. Buy your boat elsewhere and bring it to FL within less than 6 months, and you will get credit for any sales tax you have already paid; which means that if you paid less than 6% elsewhere, then you will have to pay the difference.

 

[Divealot]

Wouldn't it be nice if this was united states. If in US water a single but simple registration and reasonable tax for all boaters. Then you could travel anywhere in US waters.

But never mind because that would be too simple.

 

[rwidman]

Legal advice you get on the Internet is worth exactly what you pay for it!

A wise boater will check with the authorities in the state where he/she intends to keep the boat. Each state is different and in many states, counties are allowed to set their own regulations or modify state regulations.

Don't go to court and tell the judge that you were following legal advice you got on the Internet.

 

[rwidman]

Wouldn't it be nice if this was united states. If in US water a single but simple registration and reasonable tax for all boaters. Then you could travel anywhere in US waters.

But never mind because that would be too simple.

Perhaps you were absent the day they discussed US history or US government in junior high school, but just to clear things up, the "United States" is just that, a country made up of (currently) fifty independent states.

While the Federal Government does exercise some control over the states, they each have the power to pass laws, levy taxes, etc. For example, in some states, you can be executed for certain crimes while in others, you cannot be executed for any crime. In some states, certain recreational drugs are legal while in others, they are not.

To address what seems to be your complaint, US citizens can travel anywhere in US waters. Many of us do exactly that on a routine basis.

 

[BandB]

Perhaps you were absent the day they discussed US history or US government in junior high school, but just to clear things up, the "United States" is just that, a country made up of (currently) fifty independent states.

While the Federal Government does exercise some control over the states, they each have the power to pass laws, levy taxes, etc. For example, in some states, you can be executed for certain crimes while in others, you cannot be executed for any crime. In some states, certain recreational drugs are legal while in others, they are not.

To address what seems to be your complaint, US citizens can travel anywhere in US waters. Many of us do exactly that on a routine basis.

You're missing some history too. A lot has changed since 1776. One problem we encounter daily is that distances have narrowed and people travel and communicate across state lines far more than 324 years ago.

Yes, the states have all their own laws and, yes, that's the way things were set up to be states that are united. However, people get ticketed and arrested every day for things that are legal 20 miles away where they live. Some states have reciprocal agreements on some things and not on others and some states have none. In many cases it's like traveling between different countries. Today, the European Union has more commonality in many areas than our states.

It's relatively minor when it comes to boat registration but it's a felony and imprisonment when it comes to things like gun laws and age of consent. It's also a tremendous challenge to doing business in multiple states and then you add different sales tax rates for every city and county within those states. Real estate laws vary greatly. Have to hire separate attorneys for any legal matter, even something as simple as reviewing contracts or leases. We now have to collect sales tax for online sales for states in which we have no physical presence. When and how varies by each state. For instance there are states that require it when you hit 200 transactions and others when you hit $100,000 in sales. It's burdensome and costly compared to countries with a single Value Added Tax. Where we have to collect sales tax on sales changes every month. For instance when we hit $100,000 in sales in a year to Kansas, then the next sale is taxable.

The difference in titling of cars, boats and trailers also leads to a lot of theft. You transport across the right state line and it's easy.

Our forebearers did not anticipate the level of travel or communication we have today or the number of people who would be doing business in multiple states. They didn't anticipate power boats doing the great loop. lol

 

[MYTraveler]

You're missing some history too. A lot has changed since 1776. . . .

Our forebearers <sic> did not anticipate the level of travel or communication we have today or the number of people who would be doing business in multiple states. They didn't anticipate power boats doing the great loop. lol

But they did anticipate the challenges of interstate commerce and the need to balance states' rights, hence the Commerce Clause, which has been the subject of a great deal of USSC litigation where the argument is often made (in many contexts) that our forefathers could not have anticipated today's world.

 

[kthoennes]

Wouldn't it be nice if this was united states...

Without drifting off into politics, many of us wouldn't have it any other way and wish the 10th Amendment were honored more often. This is a thread about boat ownership and taxes I know so I'll keep it to that, but even on that narrow point alone, God bless *these* United States. Perish the thought I wake up one morning and I'm suddenly boating under say California-style laws and rules and taxes.

 

[BandB]

Without drifting off into politics, many of us wouldn't have it any other way and wish the 10th Amendment were honored more often. This is a thread about boat ownership and taxes I know so I'll keep it to that, but even on that narrow point alone, God bless *these* United States. Perish the thought I wake up one morning and I'm suddenly boating under say California-style laws and rules and taxes.

And on boat ownership, there are so many issues. For instance, requiring registrations in multiple states. Then there is giving credit for sales tax. Some like FL let you pass if you had it six months in another state. Other states are not so kind but do give you credit for taxes paid to the original state while billing you the difference. Some give you full credit if you paid sales tax elsewhere. Now what about states that don't have sales tax. Some credit you for having been legally registered in one. Other states do not credit that.

 

[fgarriso]

This all goes to prove my point!

Do not register or document a boat in the US.

 

[BandB]

This all goes to prove my point!

Do not register or document a boat in the US.

Then you have an entire additional set of rules.

We're both documented and registered in the US and we just comply with state regulations as well. At this moment we're on a US documented and registered boat that has never seen the US. It's seen Italy, Croatia, Montenegro, Monaco, France, Spain, Gibraltar, Portugal, Guernsey, UK, The Netherlands, and Norway so far and will see many other countries before being shipped to the US in November.

 

[rwidman]

You're missing some history too. A lot has changed since 1776. One problem we encounter daily is that distances have narrowed and people travel and communicate across state lines far more than 324 years ago.

Yes, the states have all their own laws and, yes, that's the way things were set up to be states that are united. However, people get ticketed and arrested every day for things that are legal 20 miles away where they live. Some states have reciprocal agreements on some things and not on others and some states have none. In many cases it's like traveling between different countries. Today, the European Union has more commonality in many areas than our states.

It's relatively minor when it comes to boat registration but it's a felony and imprisonment when it comes to things like gun laws and age of consent. It's also a tremendous challenge to doing business in multiple states and then you add different sales tax rates for every city and county within those states. Real estate laws vary greatly. Have to hire separate attorneys for any legal matter, even something as simple as reviewing contracts or leases. We now have to collect sales tax for online sales for states in which we have no physical presence. When and how varies by each state. For instance there are states that require it when you hit 200 transactions and others when you hit $100,000 in sales. It's burdensome and costly compared to countries with a single Value Added Tax. Where we have to collect sales tax on sales changes every month. For instance when we hit $100,000 in sales in a year to Kansas, then the next sale is taxable.

The difference in titling of cars, boats and trailers also leads to a lot of theft. You transport across the right state line and it's easy.

Our forebearers did not anticipate the level of travel or communication we have today or the number of people who would be doing business in multiple states. They didn't anticipate power boats doing the great loop. lol

re" the European Union has more commonality in many areas than our states."

My ancestors left Europe because they didn't like it there. I feel the same way about it. If you like Europe so much, there's nothing keeping you from moving there.

Me, I'll take the good old USA with all its problems over the nanny state and excessive taxation in Europe. Did you forget that part?

 

[rwidman]

This all goes to prove my point!

Do not register or document a boat in the US.

If you intend to keep a boat in the USA, you will have to register or document it in the US.

 

[rwidman]

You're missing some history too. A lot has changed since 1776. One problem we encounter daily is that distances have narrowed and people travel and communicate across state lines far more than 324 years ago.

Nope, not missing any history at all. What you are posting is not history.

Different states have different laws because of different conditions. What makes sense for New Jersey might not make sense for Iowa. Even within a given state, counties have the right to make some laws and cities have the right to make laws within those cities.

And when people travel from state to state it is their responsibility to follow the laws in that state. It's part of being a grownup.

 

[kthoennes]

From everything I know from my relatives in Germany, Europe is no bureaucratic paradise either, from the cheese regulation in France to the temporary leasing of graves in Germany. If my great grandfather weren't buried in a war grave memorial near Ypres, his resting place would have been reused and re-leased decades ago. If we ever go to the "Boot" boat show in Dusseldorf I'll take a side trip to Langemark - but all the other older relatives in Hellenthal are already tilled under with strangers buried on top. Messy boat regs and taxes are nuthin'.

 

[BandB]

re" the European Union has more commonality in many areas than our states."

My ancestors left Europe because they didn't like it there. I feel the same way about it. If you like Europe so much, there's nothing keeping you from moving there.

So you think Europe hasn't changed in 300 years and, yes, we very much like Europe and, if we wanted to, would move there. But then we like many places. Right now like the long days which allowed us to get ready this morning to start today's trip at 4:00 AM so we can reach Copenhagen by mid afternoon.

 

[HTurner]

Another thread descends into &^#*!!...

 

[backinblue]

I wonder how often the registration laws and taxes are really enforced. My boat (prior to my purchase) lived in VT for 8 years with a NH registration, i.e. no sales tax. When I moved it to CT a few years ago I registered it and paid ~$6K in taxes thanks to a new law that limited taxing of boat sales in CT. I think that has expired and would now be more than double that amount. I've yet to have any law enforcement ask or check my registration. But I have not registered my dinghy as required, because I'm a rebel at heart!

 

[Nightflyer]

There are taxes for boats in Georgia more than just registration.

Friend had his 29’ boat in a inclosed storage unit north of Atlanta and found a impound lock on trailer for failure to pay personal property tax on $100,000 boat. More than $1,,000.

For boats (or any personal property business), anything $7501 + is supposed to be taxed. Every county should be doing this, but some are more on the ball so to speak. Basically, whatever amount it is valued at, take 40% of that and apply your county's millage rate. That will be your tax liability for the year.Mar 9, 2017

The City of Savannah's 2019 millage rate is 12.856, which means property owners pay $12.856 per $1,000 of taxable value. *Please note: locally, the School Board and Chatham County set and assess property taxes separately and in addition to the tax rate set and collected by the City of Savannah.

Lake Lanier north of Atlanta:
For tax year 2020, the combined millage rate for Forsyth County has been set at 27.614 mills ($27.614 per every $1,000.00 of net assessed value).

 

[backinblue]

Thankfully, CT does not tax boats as personal property, only road vehicles. But we do pay a lot in sales tax when you purchase or register in CT for the first time.

 

[BandB]

I wonder how often the registration laws and taxes are really enforced. My boat (prior to my purchase) lived in VT for 8 years with a NH registration, i.e. no sales tax. When I moved it to CT a few years ago I registered it and paid ~$6K in taxes thanks to a new law that limited taxing of boat sales in CT. I think that has expired and would now be more than double that amount. I've yet to have any law enforcement ask or check my registration. But I have not registered my dinghy as required, because I'm a rebel at heart!

It varies by state and even by locale within states. On states that have property taxes on boats, the property tax assessors are often very vigilant. In areas where state wildlife officers are active, they'll often do safety checks and include registration. They may ask if your registration is out of state, how long the boat has been in their state. Now a boat with no registration would generally have a high risk of being checked and ticketed, but perhaps not true in the states you're in. Tenders and dinghies in other states often get ticketed.

 

[Porgy]

The discussion had wandered off a bit as the denizens here are wont to do but, the OP just wanted to visit GA or SC for one or two months. They present themselves as law abiding Floridians and nothing posted to imply otherwise. No cheating, skirting the law, dodging taxes, not on the lam staying one step ahead of Johnny Law. Just visit for a short spell.

The OP should undertake their own due diligence but I think they’ll find that some other states allow boaters from different states to legally visit them for a period of time. Geez.

 

[jhall767]

What about a soujourners permit for Florida if in the state for over 90 days? I've read where its a requirement.

Purchased the boat and paid the Maryland tax a couple of years ago. Now I want to winter over in florida for 7 or 8 months.

 

[psneeld]

SC marinas are required to send certain slip rentals to their taxation department.

In NJ, we (USCG) used to fly the taxation people people around looking for out of state boats and illegal marinas.

In FL, the FWC guys come around the docks yearly (last couple of years at least) checking for registration.

 

[Newtrawlerowner]

Trying to understand state use taxes. Do states tax or impose a fee on out of state boats that are moored in that particular state for extended periods of time? I'm from Florida and was thinking of docking my boat in a GA or SC marina for a month or 2 this fall. Will I have to pay that state a use fee?

The short answer is “it depends”
My boat is in Florida. I bought it there and because I planned on keeping it there, I paid the tax. BUT no one has ever pulled me over and asked for proof. I did register in Florida and they did ask about sales tax.
My first boat I also bought in Florida, did pay the tax but never did register there. I registered in Colorado. No sales tax required in Colorado UNLESS you are from out of state and plan on being there more than 90 days with your boat. So check with the state you plan on keeping it in. Good luck.

 

[backinblue]

As a side note, a little off topic, it's a shame that everyone thinks boat owners are in the top 1% and therefore should pay more in taxes. In my state, there was once a luxury tax on top of sales tax for boats sold over $100K. It decimated the local boating industry and hurt boat sales and all the workers and industry surrounding boating. Granted, it's an expensive past-time, but targeting boaters as a tax bonanza is a mistake. After the boating industry took a huge hit, they not only eliminated the luxury tax but limited the sales tax on boats to 3% and a big recovery resulted. The 3% has now expired and boaters wtill have to pay the hefty state sales tax but there are still options like nearyby Rhode Island that does not tax boaters and encourages a thriving boating industry. In they end, they likely make much more in revenue because of all the employment and supporting businesses like marinas and hotels and restaurants and suppliers and workers that exist because of a really thriving boating community. OK jumping off the soapbox now. I know this is not a political site, but the short-sighted easy money-grab from boaters is not a smart decision. We will choose not to spend our money or spend it elsewhere when the costs become exorbitant.

 

[timb7734]

We kept a Florida registered vessel in Brunswick Ga every summer for ten years, June to October, without ever re registering in Ga or being questioned about it.

 

[Datenight]

The 3% has now expired and boaters wtill have to pay the hefty state sales tax but there are still options like nearyby Rhode Island that does not tax boaters and encourages a thriving boating industry. /QUOTE]

According to the Connecticut DMV website the sales tax on boats is still 2.99%. We paid 2.99% on the new dinghy this spring.

Rob

 

[backinblue]

The 3% has now expired and boaters wtill have to pay the hefty state sales tax but there are still options like nearyby Rhode Island that does not tax boaters and encourages a thriving boating industry. /QUOTE]

According to the Connecticut DMV website the sales tax on boats is still 2.99%. We paid 2.99% on the new dinghy this spring.

Rob

Hmmm that's good news. I thought it had expired. Glad to hear it hasn't.