Changing boat from commercial to rec

LittleMac

Lieutenant
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Oct 11, 2011
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My boat is documented commercial; I am in NY State. My commercial fishing has gone down the past few years to the point I am thinking about giving up that endeavor. However, I would still like to keep the boat and use for recreational fishing / cruising.
As the boat was commercial, I was not required to pay sales tax in NY State, or register the boat when first purchased.. Obviously, if I no longer use the boat commercially I will need to change doc and register with NY as recreational vessel.
My question comes to the sales tax. What would be my cost basis when I register and pay sales tax? Original purchase cost? Or current value after depreciation?
Any other thoughts on this topic are greatly appreciated.
Best-Patrick
 

andy65

Commander
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Feb 11, 2012
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First Name
Andy
Boat Make
Northern Bay 36
They are probably going to want Fair Market Value. With depreciated value, boat could be fully depreciated and zero value. When someone sells a boat to their relative for $1, then they need a fair market. Can always call and inquire at your friendly NY sales tax office and ask the procedure, "If I were to ...."
 

F/V First Team

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Jan 10, 2012
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Narnia
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www.otisenterprisesmarine.com
Boat Make
Northern Bay 36 - Modified
Keep the fishing endorsement on your documentation. Costs nothing, gets your paperwork on top of the pile for renewal and it will be our little secret that you aren't all that much into being commercial anymore. Add recreation endorsement if you wish, you just have to pay a fee to have it changed.
 

captainlarry84

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Sep 13, 2011
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Freeport NY
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KristenFormer Charter Captain
You will need a detail letter of value from the original builder with a current value price. The DMV will accept it and they will mark your case for investigation. You may be contacted you not be contacted.
They will also accept the original bill of sale. If you original bill of sale is below the going market value they may once again accept it and then mark it for investigation.
Once done your NYS Reg will be no transferable and a title will not be issued. As your vessel origin is with the US Coast Guard.

You also will need to fill out a US Coast Guard form to change vessel status. The process is painless.

I know I have done it.
Keep in mind that once recreational endorsements are added the USCG notifies DMV that there is a recreational vessel that did not pay the taxes.
 
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