Boat purchase sales tax

[Cuttyhunker]

So the real answer is who really knows where the bureaucrats will take you? What a long strange trip it could be.

 

[ytmarine]

What about reg as home made?

You need to show RIDEM every receipt, at time of application for reg., for materials used in the "homemade" build.

 

[NBoldt]

How does documenting change this discussion? Or does it? If you live in a non-tax state when you buy it, document it, then move into a tax state? Do they look at documented boats?

I bought a boat that was documented. I didn’t know anything about documentation. i read at if a bat is documented then it’s illegal for a boat to be registered with a state. I compared the two prices and found that documentation was cheaper, so I went with that. When I went to pay sales tax in VT, I found that the state charges a similar priced non-registration fee if the boat is in the water for thirty days or more a season. Not so cool!

I sent in documentation fees and papers last September and state sales tax/non-documentation fees and papers about six weeks ago. I have none of the required forms. The state wanted NADA values for my Atlas Acadia. They don’t exist. All similar ones for sale are in pristine condition. We needed a new hull paint and lots of other work. I’m fearing a fight as the out-of-state seller didn’t put the actual sale price on the purchase agreement, and I did know it was required.

 

[AJ2020]

This is all an excellent example of how confusing govt bureaucracy has become...u need a tax attorney to understand basic shit...and in the end they will take more money away from you...

 

[Kimotee]

If it is good for John Kerry, it is good enough for you.... Kerry's family boat is kept in RI for exactly the same reason. Sen. Kerry docks yacht in R.I., saves on taxes However, beware if you bring the boat into Massachusetts for extended service or storage....you may become liable for the tax as a Massachusetts resident.

 

[Seacraft18]

You are incorrect. This is a common method in CT and Ma to get around their respective taxes. If you live in Ma, you need to pay the tax there regardless of registering it in RI. The fees in RI are equal to any tax in CT or Ma. However, a boat that spends more than 90 days in RI waters must be registered there, this is the same rule that applies to CT and Ma. Keep in mind to operate a RI registered vessel in RI waters you'll need a RI boater's license. Rhode Island Boating Laws & Regulations | Boat Ed® http://www.dem.ri.gov/programs/managementservices/licenses/boating-registration.php

not sure where you are getting your information regarding Mass.

Sales and Use tax on Boats, Recreational Off-Highway Vehicles, and Snowmobiles

Private sales made outside of Massachusetts​

A 6.25% use tax on your purchase is due by the 20th day of the following month that it entered Massachusetts, if your purchase was:

• Bought outside of Massachusetts from a private party and
• Brought into Massachusetts within 6 months for:
  • Use
  • Storage or
  • Other consumption.

For example, a use tax would be due by July 20 if you:

• Bought a snowmobile in New Hampshire on January 1 and
• Brought it into Massachusetts on June 30.

​

 

[Rand Peck]

As Deckhand above mentioned, RI does not have a sales tax on boats. My question is, as a Mass resident, even if keeping her in RI, can you register her there. Will RI want a perminent resident address or do they let out of staters register there?

 

[Clamdigger]

ahh....not necessary true. It's "time" in RI waters. And I hate calling it "registered" because it really isn't. It's just a sticker and a fee, not really a registration (for documented vessels). Documented boats, cannot be registered with a state.

USCG allows States to register and collect sales tax. Every state is different, USCG only enforces Federal law. Some states even title documented boats. Also if registering a boat it's in the state of principal use or stored

 

[proskirichard]

If it’s documented you don’t have to register in any state. Just have to list a hailing port that could be anywhere. I would just list new castle.

In NY State you need to register the boat regardless of Documentation.

 

[Brooksie]

Could they make it more complicated??
I am a MA resident, I bought a boat in FL (private sale) stored and cruised it there for years, was boarded a couple of times (customs, harbor petrol, environmental police) showed document. Sold boat 10 years later (private sale). Never paid any fees or taxes to MA or FL.

 

[Genius]

USCG allows States to register and collect sales tax. Every state is different, USCG only enforces Federal law. Some states even title documented boats. Also if registering a boat it's in the state of principal use or stored

can't title a Documented vessel, at least that is my understanding. Please show me where this is possible.

Also, I don't like this registering term....I understand states want there share of the money and issue stickers, even call them registration.... But, I guess this term is being used so widely I need to get over it.

 

[BB_Offshore]

In California (Marin County), in addition to the sales tax (roughly 10% of the purchase price), one is taxed 1.25% of the combination of the purchase price and the sales tax every year.
That is, if I paid 100K for the boat and taxed 10K, the value of the boat is determined by the County Appraiser to be
110K. Unbelievable but true. A tax on a tax paid for with income that was already taxed.
Whatever happened to the Tea Party?

How bad was the assessed value increase in Marin this year? SF and Sonoma counties were up ~25%. Was even more less than pleased when I opened the tax bill this year...

 

[novivin]

I

I think it's the sticker....seems contradictory...

I agree. I am testing this out now. We’ll see...

 

[novivin]

How bad was the assessed value increase in Marin this year? SF and Sonoma counties were up ~25%. Was even more less than pleased when I opened the tax bill this year...

Holy Crap.

 

[novivin]

Could they make it more complicated??
I am a MA resident, I bought a boat in FL (private sale) stored and cruised it there for years, was boarded a couple of times (customs, harbor petrol, environmental police) showed document. Sold boat 10 years later (private sale). Never paid any fees or taxes to MA or FL.

If this boat was Documented, then I guess I understand why they never found you. Was it slipped, or moored? Did you have to deal with any municipal govt. to permit moori g or dockage? Wondering so we can undrstand how Florida might handle it at least...

 

[Seacraft18]

If this boat was Documented, then I guess I understand why they never found you. Was it slipped, or moored? Did you have to deal with any municipal govt. to permit moori g or dockage? Wondering so we can undrstand how Florida might handle it at least...

You wondered who never found him, mass or fl ?

according to mass.gov, He did not owe taxes to mass.

Sales and Use tax on Boats, Recreational Off-Highway Vehicles, and Snowmobiles

Private sales made outside of Massachusetts​

A 6.25% use tax on your purchase is due by the 20th day of the following month that it entered Massachusetts, if your purchase was:

• Bought outside of Massachusetts from a private party and
• Brought into Massachusetts within 6 months for:
  • Use
  • Storage or
  • Other consumption.

For example, a use tax would be due by July 20 if you:

• Bought a snowmobile in New Hampshire on January 1 and
• Brought it into Massachusetts on June 30.

 

[Brooksie]

If this boat was Documented, then I guess I understand why they never found you. Was it slipped, or moored? Did you have to deal with any municipal govt. to permit moori g or dockage? Wondering so we can undrstand how Florida might handle it at least...

It was stored at a storage yard then cruised. Never moored or in a marina.

 

[novivin]

I am wondering because I do not state register a personal boat, but just paid a five year Fed. Doc after i bought it in RI. It is in my driveway being refinished. I have a personal mooring in the town I live in for it. I have not been charged excise tax yet, even though i bought it last year but the Doc came after tax season. I am on the up and up with my town regs on the mooring. I am waiting to see if somebody wants to collect. I have NO plan to register with a state. The boat has been legally registered with the USCG. How can you be expected to register with federal and state? I always understood one or the other is fine. I know plenty of people that recreationally document only and have for years.

 

[Technofish2]

You are correct. No sales tax on boats registered and kept full-time in RI. I live in CT, Keep my boat at a marina in RI. My boat has been registered and kept in RI for 20

You are correct. No sales tax on boats registered and kept full-time in RI. I live in CT, Keep my boat at a marina in RI. My boat has been registered and kept in RI for 20 years.

Are you documenting the boat with the coast guard? I believe you have to have some form of registration/identification number on the boat. I bought a boat in Florida. Didn't pay any sales tax on it. Had it delivered to NY, in the fall when purchased. Trailered it to Mass where it remained. Documented it with the coast guard. Traded it some years later for a boat in New Jersey. Trailered it to New York myself, then trailered it to Mass as I did the first boat. Documented boat number 2 as well. Some years later New York taxation is inquiring about the boats documented and wanting proof of sales tax. I told them the boat was not in New York, but in Mass. So, they asked me how it got there. I told the person on the phone I transported it there. They asked me to write a letter indicating I trailered it there myself. So, I obliged with a letter with proof the boat was in Mass. Next thing I know I've got a bill for about $30,000. in sales tax, penalties and interest. They entrapped me with the letter I supplied. Claimed the boat was deemed used in New York because it was under my control in New York while I trailered it. They backed off on boat number one but wouldn't number 2. They dropped the penalties but not the interest. Cost me $14,000. Apparently, the state data mined the coast guard data base looking for boats documented by New Yorkers that had no record of sales tax. No one would have the expectation that a boat bought somewhere else and docked in waters other that your state of residence would require you to pay sales tax to your state of residence. Had I any idea, I would have paid the sales tax in the beginning. It would have been cheaper. I believe these investigators get more money for cases they close. So, they're ruthless in their approach to information gathering. In today's world of technology and data it's a risky game to attempt to avoid the sales tax. The only way I would have avoided the tax to New York is if I had it delivered to Mass and took ownership of it there. But Mass would then have a claim against it for sales tax. You can't beat them. Sooner or later, they find you.

 

[Quik Fix 16]

. You can't beat them. Sooner or later, they find you.

Very true Comrade.