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Skipping CA tax ?

5K views 34 replies 15 participants last post by  denverd0n 
#1 ·
Hey,
I live in HI and planning to buy a boat in CA in June.
Only issue, I don think I can't get the boat ready to leave right away.
in HI, there is no sale taxes on used boat. In CA, it is certainly close to 10%.
Anyway I can register my boat in HI, keep the boat until next Summer (full year) in CA and sail it - when ready - at that point ?

Is it really illegal ?

Thanks,
Olivier
 
#32 ·
You can usually find out both the right way the wrong way and the grey way to deal with taxes by talking to an active broker in the state you have in mind.

Even if you are interested in a private sail their is no reason you can't talk to a broker and give him a shot at selling you a one of his boats. He may get lucky you never know. During that discussion ask about the taxes.

Talking to the taxing authority would authoritative but they will not give you any creative ideas.
 
#33 ·
The OP states "keep the boat until next Summer (full year) in CA and sail it" That is use in California. He does not want to pay the tax but he wants to use the CA facilities. Pay the tax! Who should pay for the breakwater maintenance, the dredging, the bouys, the harbor patrol,... If it is too expensive at Marina Del Rey, buy it elsewhere and maintain it elsewhere. Buy the boat in Nevada to avoid the ax; of course there are problems with that.
 
#34 ·
Catching up.

First, not a full year, I was stating next summer, I meant THIS summer, I.e. 3-4 months.
My bad.
As out off state resident, it is legal to do an offshore delivery, keep the boat less than 6 months in CA and move it out of the state. I won't discuss if this is fair or not for Californian tax payers, but it is legal.
CA brokers seem to be used to offshore deliveries, it looks like common practices.

Sidetrack: you can moore your boat on the west side, in Lahaina. It can be tricky as any mooring, but if you pay attention, it is safe and feasible.
 
#35 ·
6 months!?! I'm surprised to hear that California allows you 6 months to move your boat before you have to pay use tax on a purchase. Of all the states that charge a use tax on the sale/purchase of a boat, this is the first that I have heard of that allows more than 3 months. I have to wonder, are you sure about that?
 
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