Skipping CA tax ? - Page 2 - SailNet Community

   Search Sailnet:

 forums  store  


Quick Menu
Forums           
Articles          
Galleries        
Boat Reviews  
Classifieds     
Search SailNet 
Boat Search (new)

Shop the
SailNet Store
Anchor Locker
Boatbuilding & Repair
Charts
Clothing
Electrical
Electronics
Engine
Hatches and Portlights
Interior And Galley
Maintenance
Marine Electronics
Navigation
Other Items
Plumbing and Pumps
Rigging
Safety
Sailing Hardware
Trailer & Watersports
Clearance Items

Advertise Here






Go Back   SailNet Community > On Board > Boat Review and Purchase Forum
 Not a Member? 


Like Tree11Likes
Reply
 
LinkBack Thread Tools
  #11  
Old 05-25-2014
Senior Member
 
Join Date: Feb 2011
Location: San Francisco Bay area
Posts: 2,250
Thanks: 2
Thanked 38 Times in 38 Posts
Rep Power: 4
MarkSF is on a distinguished road
Re: Skipping CA tax ?

Quote:
Originally Posted by overbored View Post
in California you can either register with the DVM or document the boat. If you register it then the DMV will collect the use tax at that time. If documented then the state sends you a bill for the use tax about 6 months after the sale for any boat documented with a California address
Or in my case, you pay the use tax to the DMV, then 6 months later the state demands it again!
__________________
1984 Bristol 31.1
Alameda, California, USA
Reply With Quote Share with Facebook
  #12  
Old 05-25-2014
Senior Member
 
Join Date: Feb 2011
Location: San Francisco Bay area
Posts: 2,250
Thanks: 2
Thanked 38 Times in 38 Posts
Rep Power: 4
MarkSF is on a distinguished road
Re: Skipping CA tax ?

Quote:
Originally Posted by thevdeub View Post
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
Your best option might be to ship it.
__________________
1984 Bristol 31.1
Alameda, California, USA
Reply With Quote Share with Facebook
  #13  
Old 05-25-2014
GMFL's Avatar
Large Member
 
Join Date: Jun 2010
Location: Newport Beach, CA
Posts: 276
Thanks: 5
Thanked 3 Times in 3 Posts
Rep Power: 5
GMFL is on a distinguished road
Re: Skipping CA tax ?

Quote:
Originally Posted by Rhapsody-NS27 View Post
You not only need to be concerned about sales tax, but CA also has a Use tax. If keeping your boat in CA after the sale, you may be subject to both.
You are thinking of property tax here. In CA, use tax is what you are supposed to pay for items purchased out of state.
Reply With Quote Share with Facebook
  #14  
Old 05-26-2014
Senior Member
 
Join Date: Feb 2011
Location: San Francisco Bay area
Posts: 2,250
Thanks: 2
Thanked 38 Times in 38 Posts
Rep Power: 4
MarkSF is on a distinguished road
Re: Skipping CA tax ?

Property tax is due yearly and is about 1%. Sales / use tax is a one off tax due on purchases, and is about 9%, regardless of whether the item is purchased out of state, or in CA.

Why not do some research on the CA tax websites where you might get some ACCURATE info?
christian.hess likes this.
__________________
1984 Bristol 31.1
Alameda, California, USA
Reply With Quote Share with Facebook
  #15  
Old 05-26-2014
christian.hess's Avatar
"Nubile Southern Sailor"
 
Join Date: Sep 2013
Location: Columbus, Ga
Posts: 3,834
Thanks: 102
Thanked 152 Times in 148 Posts
Rep Power: 2
christian.hess is on a distinguished road
Re: Skipping CA tax ?

yup whatever it is called its around 9 percent paid on the spot at dmv...

really simple like mark says
__________________
Finally sailed!!!!!!
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Islander 36 refit still going on...

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Reply With Quote Share with Facebook
  #16  
Old 05-26-2014
GMFL's Avatar
Large Member
 
Join Date: Jun 2010
Location: Newport Beach, CA
Posts: 276
Thanks: 5
Thanked 3 Times in 3 Posts
Rep Power: 5
GMFL is on a distinguished road
Re: Skipping CA tax ?

Quote:
Originally Posted by MarkSF View Post
Property tax is due yearly and is about 1%. Sales / use tax is a one off tax due on purchases, and is about 9%, regardless of whether the item is purchased out of state, or in CA.

Why not do some research on the CA tax websites where you might get some ACCURATE info?
EXACTLY! For instance, I only pay 8% sales tax where I live.

Use tax is usually stated and paid on your tax return BTW and is only for out of state purchases. Sales tax on a boat or vehicle, if done privately, is paid based on what YOU state the purchase price is, FWIW. (hint, hint)
christian.hess likes this.
Reply With Quote Share with Facebook
  #17  
Old 05-26-2014
christian.hess's Avatar
"Nubile Southern Sailor"
 
Join Date: Sep 2013
Location: Columbus, Ga
Posts: 3,834
Thanks: 102
Thanked 152 Times in 148 Posts
Rep Power: 2
christian.hess is on a distinguished road
Re: Skipping CA tax ?

tried to hint at that before...

wink wink!
__________________
Finally sailed!!!!!!
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Islander 36 refit still going on...

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Reply With Quote Share with Facebook
  #18  
Old 05-26-2014
GMFL's Avatar
Large Member
 
Join Date: Jun 2010
Location: Newport Beach, CA
Posts: 276
Thanks: 5
Thanked 3 Times in 3 Posts
Rep Power: 5
GMFL is on a distinguished road
Re: Skipping CA tax ?

Back to the OP's question,

What's to stop you from buying the boat in CA, taking the bill of sale back to HI and just transferring title there? Get your new HI numbers, sticker and slap them on next time you're in CA. Sail it home when you can.
Reply With Quote Share with Facebook
  #19  
Old 05-26-2014
Senior Member
 
Join Date: Apr 2000
Location: San Pedro, CA
Posts: 266
Thanks: 0
Thanked 1 Time in 1 Post
Rep Power: 15
windward54 is on a distinguished road
Re: Skipping CA tax ?

Actually there are three taxes paid on California boats, but normally you only have to worry about two of them, the sales tax and the annual property tax. Sales tax is due on the purchase, you can avoid it by taking an off shore purchase. The boat has to go out of the State for at least one year. There is an exception for repairs, and the boat is allowed to stop in the State for making repairs. But the use of the boat is limited while under repair to 25 hours on the engine.

The second tax is property tax, and that is assessed on the boat if the boat is moored or docked in California on January 1st. The State actually hires people to walk docks to check on boats.

Best bet, take an off shore delivery and head for Ensenada. They do great work there and you don't have to deal with the State.
Reply With Quote Share with Facebook
  #20  
Old 05-27-2014
Senior Member
 
Join Date: Feb 2010
Location: Narragansett Bay
Posts: 9,097
Thanks: 10
Thanked 142 Times in 128 Posts
Rep Power: 6
Minnewaska will become famous soon enough Minnewaska will become famous soon enough
Re: Skipping CA tax ?

Lot's of confusion above. Sales tax is paid upon sale and sometimes collected when you register. Use tax is the equivalent concept, but due upon "using" your property within the State. The concept is born from those that buy their property in another state and immediately remove it, thereby being exempt from sales tax in the state of purchase. The State you use your property withing still wants their vig.

Looks up California Sale/Use tax rules. Some states will provide a longer exemption for moving your property to your home state, if you keep the boat on the hard. I do not know CA rules.

However, forget about trying to beat the system by lying or deceiving. If you get caught (and the tax guys LOVE to catch rich boat owners), the penalties and interest will make you bleed. Do it correctly.
__________________

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

Jeanneau 54DS

In the harsh marine environment, something is always in need of repair. Margaritas fix everything.
Reply With Quote Share with Facebook
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

 
Posting Rules
You may post new threads
You may post replies
You may post attachments
You may edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax Question... palomar General Discussion (sailing related) 15 02-03-2012 01:16 PM
Sales tax - is this right?? labatt Boat Review and Purchase Forum 46 01-02-2007 06:23 PM
tax SimonV General Discussion (sailing related) 20 07-31-2006 12:04 PM
tax christinero General Discussion (sailing related) 1 07-28-2006 02:57 PM


All times are GMT -4. The time now is 02:15 PM.

Add to My Yahoo!         
Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
SEO by vBSEO 3.6.1
(c) Marine.com LLC 2000-2012

The SailNet.com store is owned and operated by a company independent of the SailNet.com forum. You are now leaving the SailNet forum. Click OK to continue or Cancel to return to the SailNet forum.