Where to document/title/register? - 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 01-14-2010
TakeFive's Avatar
If it's blowin' I'm goin'
 
Join Date: Oct 2009
Location: Swarthmore, PA
Posts: 2,565
Thanks: 5
Thanked 46 Times in 43 Posts
Rep Power: 5
TakeFive will become famous soon enough
Where to document/title/register?

I will be buying my first keel boat shortly and soon will need to decide what state to declare as my boat's "home." I live in PA, and plan to keep it nearby in PA for a year. If I like the Delaware River more than I think I will, it could be longer. But Plan A is to take it to Maryland (upper Chesapeake, maybe Rock Hall) in 2011 and thereafter. So I'd like some advice on the possible choices:
  • Document and register in PA (per state requirement), pay 6% sales tax to PA. In a year move it to Maryland and buy the MD sticker that they require. I've heard MD is notoriously strict about collecting excise taxes. But they don't demand excise tax if I can prove I paid to PA already, do they?
  • Document in MD, and pay 5% sales tax there (save 1% vs PA, I think), and be a "visitor" in PA for a year, hoping PA enforcement does not notice. This could save me 1% sales tax, and I do not believe PA is as strict with enforcement as MD is.

    Has anyone tried the second option? Is it too risky? For anyone who has moved their boat from PA to MD, how did that process go for you? Were you able to show proof of PA sales tax and avoid MD excise tax?

Last edited by TakeFive; 01-20-2010 at 09:06 PM.
Reply With Quote Share with Facebook
  #2  
Old 01-14-2010
Senior Member
 
Join Date: Oct 2009
Location: Virginia
Posts: 1,041
Thanks: 3
Thanked 14 Times in 14 Posts
Rep Power: 5
chuck53 is on a distinguished road
One thing you need to know, you can put any hailing port you want on your boat. Doesn't have to be the port you actually keep it in.
If you live in PA, put PA on it and keep it PA even if you move it to another state.
My first documented boat had the town I live in which isn't even close to where I kept my boat. Second boat actually had the town I kept the boat in.
It really doesn't matter.
You do know you do not put any state numbers on a documented boat. State sticker maybe (depending on the state) but no state numbers.

Edit.
I might add, I've known lots of people that bought their boats in other states, brought them to VA and never changed the hailing port. I would say that happens often.

Last edited by chuck53; 01-14-2010 at 07:08 PM. Reason: change
Reply With Quote Share with Facebook
  #3  
Old 01-14-2010
Webdood
 
Join Date: Apr 2000
Location: Circumnavigating
Posts: 4
Thanks: 0
Thanked 0 Times in 0 Posts
Rep Power: 0
webdood is on a distinguished road
Think about international registration

If you're into saving on sales (and other) taxes, think about registering it as a documented vessel in international waters. Copy paste this text into Google and go to that website. (this site will not let us post links?) (lame)

Copy/paste this into Google

Offshore boat registration. Registering a yacht in advantageous offshore jurisdictions
Reply With Quote Share with Facebook
  #4  
Old 01-14-2010
catamount's Avatar
Senior Member
 
Join Date: Sep 2002
Location: Gulf of Maine
Posts: 598
Thanks: 0
Thanked 1 Time in 1 Post
Rep Power: 13
catamount is on a distinguished road
If you buy the boat in a state that collects sales (or excise) tax on the purchase, you usually have a limited grace period to get the boat out of state in order to avoid paying the tax in that state -- but you will have to pay the tax in the state you take the boat to (assuming state 2 collects such a tax). Once you've paid the tax in that state (2), and if you keep the boat in that state long enough, then when you bring the boat to a third state, they (probably) won't expect you to pay the tax again, but they will expect you to register the boat with their state (if you keep in the state long enough). All that matters is where the boat is physically, and for how long. It does not matter what you claim as the hailing port when you document the boat -- the hailing port can be any place in the US.
__________________
Peterson 34 GREYHAWK, West Boothbay Harbor, Maine

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.
, a new voice for ocean conservation
Reply With Quote Share with Facebook
  #5  
Old 01-14-2010
catamount's Avatar
Senior Member
 
Join Date: Sep 2002
Location: Gulf of Maine
Posts: 598
Thanks: 0
Thanked 1 Time in 1 Post
Rep Power: 13
catamount is on a distinguished road
Quote:
Originally Posted by webdood View Post
(this site will not let us post links?) (lame)
You need to have posted more than one or two times before they will let you post links -- I think it's 5 or 10 posts.
__________________
Peterson 34 GREYHAWK, West Boothbay Harbor, Maine

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.
, a new voice for ocean conservation
Reply With Quote Share with Facebook
  #6  
Old 01-14-2010
Senior Member
 
Join Date: Oct 2009
Location: Virginia
Posts: 1,041
Thanks: 3
Thanked 14 Times in 14 Posts
Rep Power: 5
chuck53 is on a distinguished road
I don't know anything about international registration but I'm guessing it's good for expensive mega yachts as most of them you see are registered offshore.
For the typical boat that most people own, the advantages probably aren't there. In most states, the biggest tax issue in owning a boat is yearly property tax. Unless you move your boat around a lot to stay one step ahead of the tax man, and most of us don't, the local taxing authorities will find you and it doesn't matter whether your boat is documented or not.
Reply With Quote Share with Facebook
  #7  
Old 01-14-2010
TakeFive's Avatar
If it's blowin' I'm goin'
 
Join Date: Oct 2009
Location: Swarthmore, PA
Posts: 2,565
Thanks: 5
Thanked 46 Times in 43 Posts
Rep Power: 5
TakeFive will become famous soon enough
Does PA have property tax on boats? I've never heard of one, but this is my first boat. Waitaminute, I actually own 2 boats, but they might be "under the radar." This next boat will be my first 5-figure boat (aka "yacht" lol).

I know that VA has property tax on boats, which I suspect is why people register their boats in other states.

I suspect the reason MD is so strict is due to proximity to DE, where people register to avoid sales tax.
Reply With Quote Share with Facebook
  #8  
Old 01-14-2010
Senior Member
 
Join Date: Oct 2009
Location: Virginia
Posts: 1,041
Thanks: 3
Thanked 14 Times in 14 Posts
Rep Power: 5
chuck53 is on a distinguished road
Actually, VA doesn't have property taxes, but the local cities and counties do. At least most of them. There are a few localities that don't charge property tax on boats. But the ones that do, check state boat registrations and check marinas for documented boats to make sure all are paying property tax.
Back to your original question, chances are the tax man will find you one way or another whether your boat is documented or not.
Reply With Quote Share with Facebook
  #9  
Old 01-14-2010
TakeFive's Avatar
If it's blowin' I'm goin'
 
Join Date: Oct 2009
Location: Swarthmore, PA
Posts: 2,565
Thanks: 5
Thanked 46 Times in 43 Posts
Rep Power: 5
TakeFive will become famous soon enough
I do realize that the "by the book" way to do this is pay sales taxes to PA and do required paperwork in PA, since I will keep it there for at least a year. When I move it to MD, follow their requirements.

The other option was skirting the rules a bit.

I just need to confirm that if I can prove that I paid 6% to PA, MD will not come after me for even more sales/excise tax a year later. I do realize that I would still have to buy the MD recreational sticker.
Reply With Quote Share with Facebook
  #10  
Old 01-14-2010
sailpower's Avatar
Senior Member
 
Join Date: Jun 2008
Location: Fort Lauderdale
Posts: 250
Thanks: 1
Thanked 8 Times in 8 Posts
Rep Power: 7
sailpower is on a distinguished road
The dollars you are talking about saving are so small, why not just be legal?

MD and most states will credit what you have paid elsewhere.

Good luck.
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



All times are GMT -4. The time now is 12:18 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.