Tax exemption - 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? 


Reply
 
LinkBack Thread Tools
  #1  
Old 12-05-2007
SimonV's Avatar
Wish I never found SN!
 
Join Date: Jul 2006
Location: Brisbane Australia
Posts: 1,995
Thanks: 3
Thanked 4 Times in 4 Posts
Rep Power: 9
SimonV will become famous soon enough
Tax exemption

90 Day Offshore sales are back!
Yacht Sales Tax Exemption Makes a Comeback

Thursday, September 06, 2007


Offshore Delivery? - Buyers shopping for a new boat who opt for offshore delivery and keep the boat outside of California for at least 90 days may be able to take advantage of an attractive sales tax exemption.


SACREMENTO - When legislators finally approved California's state budget Aug. 21 after a 51-day-long impasse, it contained a nice surprise for boaters: the return of a sales tax exemption on the purchase of yachts in California that are delivered offshore.

The new provision allows buyers of a boat, plane or recreational vehicle to avoid paying sales tax, as long as they follow specific guidelines and keep it out of the state for at least 90 days after the purchase. The legal requirements are somewhat complex, so getting the advice of both a tax professional and a yacht delivery firm experienced in offshore deliveries is a must.

This provision replaces a measure enacted in 2004 that had required boat buyers (along with RV and aircraft buyers) to keep their purchased vessel outside California for a full year to qualify for an exemption.

Senate Minority Leader Dick Ackerman, R-Irvine - a boat owner - is credited with spearheading the drive to remove a renewal of the one-year out-of-state requirement from this year's budget. Ackerman told reporters that the 2004 law restricting the sales tax exemption "was going to be an experiment," and he believes that experiment had failed.

Yacht brokers and boat builders statewide had been adversely affected by 2004's tougher requirements for buyers who sought to avoid sales tax, Ackerman said. A return to the 90-day out-of-state requirement for offshore deliveries is expected to provide a valuable incentive for new buyers, resulting in increased sales of larger vessels by California yacht dealers and brokers.

The tax savings will especially be a boon to buyers of larger yachts. For example, while the tax savings on a $250,000 38-foot sportfisher would be around $19,500, the buyer of a $3 million 60-foot motoryacht could save a whopping $234,000 through the exemption. In order to take advantage of the sales and usage tax exemption, buyers are required to carefully follow state tax codes. In addition to taking delivery of their vessel outside California, buyers must keep the boat out of state waters for at least 90 days of the first 180 days of ownership. The boat must actually be used during that time period (not simply stored out of state) and the original intention of the buyer must to use the boat outside of California. Many boaters opt for a slip in one of Ensenada, Mexico's full-service marinas, which some boaters have dubbed "the 90-day Yacht Club." In addition, boat buyers must be able to document all aspects of the vessel delivery and the out-of-state berthing, to prove compliance with state law. Several books are available that describe the process, including Capt. Lonnie Ryan's "The 90-day Yacht Club Guide to Ensenada." While reputable California yacht brokers can explain basic details of the law regarding exemptions, it is wise to engage the services of a professional tax advisor and a company that has experience with the requirements involved in an offshore delivery. The return of the 90-day requirement was approved as one of several budget compromises with Democratic legislators, which resulted in passage of the $145.5 billion budget signed by Gov. Arnold Schwarzenegger on Aug. 25.
__________________
Simon
Ericson 39B.
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

I love my boat
S/V GOODONYA
Brisbane
present location Heading to the Whitesundays

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

DELIVERY SKIPPER
Drinking Rum before 10am makes you a Pirate NOT an alcohlic
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
boat purchase, taxes, residence -- help for NW sailer? winslow59 Boat Review and Purchase Forum 15 01-14-2007 10:20 PM
Tax on boats brought to Florida faithab Boat Review and Purchase Forum 10 12-21-2006 08:59 PM


All times are GMT -4. The time now is 06:22 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.