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06-01-2020, 09:39 PM
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#1
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Guru
City: Burien
Vessel Name: Intrepid
Vessel Model: North Pacific/ NP-45 Hull 10
Join Date: Apr 2020
Posts: 682
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questions on paper work washington state
I am purchasing a new boat in the next few weeks and am confused as to the process for paperwork. I know there will be sales tax ,buying in blaine then mooring in seattle. Thinking i would want it registered with coast guard but then there is the state registration. Do i still need numbers? .05 % hull value fee for annual registration. would this be the hull and not electronics or added components? In what order do i do these things.
Easy to wire money and get keys but i have no idea what everyone is doing.
About 80k in sales tax +hull fee using purchase price 4k a year + any coast guard fees?
Can anyone familiar with this process help me?
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06-01-2020, 10:03 PM
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#2
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Guru
City: Port Townsend and La Paz
Vessel Name: Domino and Libra
Vessel Model: Malcom Tennant 20M and Noordzee Kotter 52
Join Date: Feb 2014
Posts: 984
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Quote:
Originally Posted by magna 6882
I am purchasing a new boat in the next few weeks and am confused as to the process for paperwork. I know there will be sales tax ,buying in blaine then mooring in seattle. Thinking i would want it registered with coast guard but then there is the state registration. Do i still need numbers? .05 % hull value fee for annual registration. would this be the hull and not electronics or added components? In what order do i do these things.
Easy to wire money and get keys but i have no idea what everyone is doing.
About 80k in sales tax +hull fee using purchase price 4k a year + any coast guard fees?
Can anyone familiar with this process help me?
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You have it right. You will pay sales tax and you will pay the annual state registration fee as you estimated. You need the annual sticker but only need display the numbers if you do not register with Coast Guard. The Coast Guard registration is the optional part but at $27 per year, not the expensive part.
In terms of order, you can do it all at the same time and I recommend a marine documentation service. There is a good one in Anacortes.
__________________
Bill
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06-01-2020, 10:11 PM
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#3
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Guru
City: Sea of Cortez, Mexico
Vessel Name: Irene
Vessel Model: Nordhavn 40II
Join Date: Jan 2016
Posts: 1,234
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Same experience here. We used Pacific Maritime Title for the previous 2 transactions with good results. No affiliation.
Congrats on the boat, look forward to hearing about it.
__________________
Jeff
MV IRENE
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06-01-2020, 10:22 PM
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#4
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Guru
City: Gig Harbor
Vessel Name: Sandpiper
Vessel Model: Bluewater 40 Pilothouse Trawler
Join Date: Nov 2012
Posts: 2,315
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In Washingtonn State, used to be, you get two receipts from the seller, one for the hull and machinery and the other for personel property, you pay sales tax on the hull and machinery only. Washington State looks at the hull, engine, transmission, running and steering gear as taxable on used older boats. And things like cleats, railings and other bolted down "as equipped" things. Personal Property purchased used is not sales taxable in Washington State.
I'm not a lawyer. I have assisted boat buyers with boat purchases as a consultant and successfully saved them from paying excess sales tax . I have not studied the new sales tax laws enacted last year, since I retired, so do not know if above still applies but it is worth it for you to check with a licensing agency.
The values placed on personal property has to be realistic. Depreciated to current value and well documented. 10 to 20 cents on the dollar unless an item is less than 6 months old. Electronics, bedding, window coverings, canvas, books, tools, spare parts, dishes, silverware etc are all personal property. 10 to 20 cents on the dollar unless it's less than 6 months old, but it adds up if you think about all the junk that comes with a used boat purchase.
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06-01-2020, 10:22 PM
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#5
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Guru
City: Seattle, WA
Vessel Name: Pau Hana
Vessel Model: 1989 PT52 Overseas Yachtfisher
Join Date: Aug 2012
Posts: 2,676
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Pacific Maritime Title in Seattle or Marine Doucmentation Services in Anacortes are both top notch for helping you wade thru the paperwork maze.
__________________
Peter- Marine Insurance Guru at Novamar Insurance Group (206-350-5051) & tuna fishing addict!
1989 52' PT Overseas yachtfisher
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06-01-2020, 11:32 PM
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#6
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Senior Member
City: Sammamish
Vessel Name: Knot Home
Vessel Model: Bayliner 4788 - 1998
Join Date: Jan 2020
Posts: 239
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If $80k in sales tax you’re in the $800k purchase price range? If a cash sale then documentation may not be required but for a loan and possibly for insurance you will need to get the boat registered with the coast guard. Are you dealing thru a broker or private sale? If a broker (on either side) they should be providing g you with guidance. Is this your first boat in the PAC NW?
__________________
Patti & Gordon Knot Home - 1998 Bayliner 4788 Anacortes WA MMSI 368040370
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06-02-2020, 12:31 AM
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#7
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Guru
City: Burien
Vessel Name: Intrepid
Vessel Model: North Pacific/ NP-45 Hull 10
Join Date: Apr 2020
Posts: 682
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This would be a cash sale and dealing factory direct so no broker. It seems folks find registering there boat advantages . We have had smaller planing type boats but didnt venture out to far since we didn't like getting banged around so much so this will be our first cruising type of boat.We have a lot to learn but that's part of the fun.
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06-02-2020, 08:52 AM
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#8
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TF Site Team
City: Westerly, RI
Vessel Name: N/A
Vessel Model: 1999 Mainship 350 Trawler
Join Date: Jan 2014
Posts: 4,154
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Don't confuse Coast Guard Documentation (title) with State Registration. These are mutually exclusive topics. If you are in a non-title state, many lien holders require they be added as a lien holder on a title. In these cases, CG documentation comes into play. CG Documentation also is typically required with most international travel.
State registration is required if you keep the boat in any state for longer than their documented length of time. It is not uncommon to have to register a boat in multiple states. Sales tax is typically paid to only one state. Some states work around this by implementing a Use Tax during registration.
CG Documented vessels don't display ANY state registration numbers. Just state registration stickers.
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06-02-2020, 09:06 AM
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#9
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Guru
City: Columbia City, OR & Mulege, BCS
Vessel Name: Imagine
Vessel Model: Farrell 34
Join Date: Oct 2015
Posts: 846
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I went through a version of this for my boat.
"Back then," when CG documentation had a long lead time, Washington DOL issued my registration with a boat number until I could show CG documentation. With that, my boat number was removed from registration and I took the number off the boat.
So, that is one path forward for you if you don't have a CG document number out of the box.
The other new complication would be regarding access to the DOL desk face-to-face, I don't know how socially-distant that is right now, maybe you have to call for an appointment.
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06-02-2020, 10:13 AM
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#10
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Guru
City: San Francisco
Join Date: Apr 2018
Posts: 3,089
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Did I miss something? 0.05% of 800K is 400? not 4000?
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06-02-2020, 10:18 AM
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#11
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Guru
City: Seattle, WA
Vessel Name: Pau Hana
Vessel Model: 1989 PT52 Overseas Yachtfisher
Join Date: Aug 2012
Posts: 2,676
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General tax estimate for vessel sales in the Seattle area is 10%.
__________________
Peter- Marine Insurance Guru at Novamar Insurance Group (206-350-5051) & tuna fishing addict!
1989 52' PT Overseas yachtfisher
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06-02-2020, 10:20 AM
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#12
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Guru
City: Puget Sound
Join Date: Jun 2016
Posts: 631
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You pay the sales tax rate for the county / city where the sales took place. I.E. Anacortes is 8.7% Seatttle is 10.1% or a savings or roughly a $11k savings. It doesn't mater where you reside or moor the boat only where the business that made the sales is located... Hence many Seattle based boat dealers have offices in Anacortes. I think that for purchases made out of state where no sales tax is paid, the tax is called a use tax and is equal to the sales tax of that local area...
__________________
When crap happens, turn it into fertilizer for your tree of knowledge..... Scott Brodie
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06-02-2020, 12:11 PM
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#13
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TF Site Team
City: Westerly, RI
Vessel Name: N/A
Vessel Model: 1999 Mainship 350 Trawler
Join Date: Jan 2014
Posts: 4,154
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Quote:
Originally Posted by Ka_sea_ta
You pay the sales tax rate for the county / city where the sales took place. I.E. Anacortes is 8.7% Seatttle is 10.1% or a savings or roughly a $11k savings. It doesn't mater where you reside or moor the boat only where the business that made the sales is located... Hence many Seattle based boat dealers have offices in Anacortes. I think that for purchases made out of state where no sales tax is paid, the tax is called a use tax and is equal to the sales tax of that local area...
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Partially true. It doesn't matter where the owner resides. Sales tax on a boat is dictated by where it is registered. Where the boat is registered is dictated by where it resides.
I live(d) in NH where there is no tax. I bought a boat in CT and registered it in NH, I did not pay taxes. I bought a boat in CT and registered it in CT I paid taxes. I bought a boat in CT and registered in RI, I did not pay taxes.
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06-02-2020, 01:44 PM
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#14
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Guru
City: Puget Sound
Join Date: Jun 2016
Posts: 631
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Quote:
Originally Posted by Shrew
Partially true. It doesn't matter where the owner resides. Sales tax on a boat is dictated by where it is registered. Where the boat is registered is dictated by where it resides.
I live(d) in NH where there is no tax. I bought a boat in CT and registered it in NH, I did not pay taxes. I bought a boat in CT and registered it in CT I paid taxes. I bought a boat in CT and registered in RI, I did not pay taxes.
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It's different in WA. The state wants their share, the only option you have to reduce the sales tax is in which city/ county the deal is consummated in as the state has a fixed sales tax of 6.5%, the cities and counties all add on to that amount... some more then others.
__________________
When crap happens, turn it into fertilizer for your tree of knowledge..... Scott Brodie
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06-02-2020, 04:18 PM
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#15
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Guru
City: Vermont
Join Date: Jan 2013
Posts: 10,076
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Quote:
Originally Posted by DDW
Did I miss something? 0.05% of 800K is 400? not 4000?
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It was a typo in the tax rate. The annual excise tax is 1/2 of one percent, or 0.5%, or 0.005. So $4k per year on an $800k valued boat. And that's paid every year, in addition to the one-time sales or use tax when the boat is purchased or brought into WA.
__________________
MVTanglewood.com
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06-02-2020, 06:26 PM
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#16
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Guru
Join Date: Dec 2018
Posts: 565
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In the example given, that tax bill would be for the first year of purchase. The excise tax paid goes down every year. The value of the boat is depreciated annually for tax purposes.
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06-02-2020, 06:32 PM
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#17
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Guru
City: Vermont
Join Date: Jan 2013
Posts: 10,076
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Quote:
Originally Posted by Spinner
In the example given, that tax bill would be for the first year of purchase. The excise tax paid goes down every year. The value of the boat is depreciated annually for tax purposes.
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Do you recall what the depreciation rate is? I was told once, but don't remember.
__________________
MVTanglewood.com
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06-02-2020, 09:26 PM
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#18
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Guru
City: Burien
Vessel Name: Intrepid
Vessel Model: North Pacific/ NP-45 Hull 10
Join Date: Apr 2020
Posts: 682
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Thanks guys for all the help. Made contact with norm in Anacortes and he is good to go. I recall him saying an 18 year depreciation rate. I feel i have all the players in line. I could not have found the high quality of people had it not been for the members of this forum.
I hope some day to be able to provide help to others myself.
Rod
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06-03-2020, 11:14 AM
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#19
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TF Site Team
City: Westerly, RI
Vessel Name: N/A
Vessel Model: 1999 Mainship 350 Trawler
Join Date: Jan 2014
Posts: 4,154
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Quote:
Originally Posted by Ka_sea_ta
It's different in WA. The state wants their share, the only option you have to reduce the sales tax is in which city/ county the deal is consummated in as the state has a fixed sales tax of 6.5%, the cities and counties all add on to that amount... some more then others.
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https://dor.wa.gov/sites/default/fil...x/BoatBroc.pdf
Nonresident boats purchases
Sales tax exemptions are available to a nonresident
who purchases a boat in Washington for use outside
the state if:
I guess if you live in the state and don't intend on keeping the boat in the state, don't buy it the state. Nice
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06-03-2020, 05:11 PM
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#20
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Senior Member
City: Seattle
Vessel Name: Mabuhay
Vessel Model: Grand Alaskan
Join Date: Jan 2018
Posts: 399
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Really excited for you and your new adventures on the water. Please keep us posted with new boat pics and outings. Let us know when you get to EBM so we can give you a proper welcome!
Btw, I'm still not happy about paying excise tax on a boat we already paid sales tax on. It's quite a sum on an annual basis. The amount of bourbon I could buy with those funds?!?
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