Titleing and USCG documentation

[Cruiser2B]

I need a bit of help with my next step. I received the NJ title and USCG bill of sale from broker today. I need to know what me next step is, do i apply for USCG doc or get title in my name first. The reason I as is because I am titling it in Virginia and vessels that are documented are not required to pay boat(2% of sale price) tax and they are not subject to property tax. I am afraid if I go to DMV for titling they will charge me the boat tax. Any help from someone with VA experience is greatly appreciated!!

[sailingdog]

Was the boat previously USCG documented ever?

If it wasn't then you should apply via the USCG Vessel Documentation Center. Forms are available HERE. Fee schedule is located here. Instructions are located here.

If it was previously documented, you'll be "returning the boat to documentation" as described in the webpages I linked to above.

You shouldn't title the boat, because the USCG documentation takes place of the title.

BTW, I don't believe that you are exempt from paying the 2% sales tax on boats if your boat is USCG documented. Nothing on the Virginia website indicates that you would be exempt from paying it. Also, didn't see anything that says a USCG documented boat is exempt from personal property taxes in VA.

[kd3pc]

C2B

As usual, Dog is correct..you will still be required to pay sales tax, whether documented or titled. As to personal property tax, unless you live in one of the very few locations where the personal property tax is waived for boats (Hampton, VA is the only one I know of) you will be subject to yearly personal property tax, based on what the county (and their rates and how they calculate it) where you slip the boat is.

Most of the time, the selling broker will collect the state sales tax on your behalf and submit it to the state....check to make sure you have not already paid that. Keep the paperwork, as "proof" you have paid the state tax, in case you want to slip in MD for a while, they WILL ask, and then DEMAND proof of tax payment in your home location, so that you can pay them the difference between VA and MD. NC is no where as mercenary as MD is.

Your documentation application paperwork, with your paid tax receipt and copy of the bill of sale, insurance binder will be "your traveling papers" so that you can legally move the boat and use it, while you await your new numbers. Keep them on the boat, just in case you are stopped by LLEO or CG.

There is no requirement to "title" your now documented boat in VA, unless you want to give the state some more money.

[SVAuspicious]

A number of waterfront counties in VA have waived property tax for boats. I know I paid no tax in Prince William County from 2002 to 2005 when I kept my boat there.

[Cruiser2B]

Ok, so if I understand the info so far, I just hang onto the title that the previous owner supplied, don't change it into mine as the documenting process will take care of that. The boat has a plaque in it where i do believe it had been documented in the past.

I know, the boat was very wet when we opened it....it looks like rain!

[sailingdog]

So, instead of applying for documentation, you'll be returning the boat to documentation, which costs $84, rather than the $133 for an initial documentation of a boat. IIRC, you'll need this form.

BTW, are you a US Citizen? If not, you'll have to state title and register the boat, since USCG documentation requires majority ownership by US Citizens.

Originally Posted by Cruiser2B

Ok, so if I understand the info so far, I just hang onto the title that the previous owner supplied, don't change it into mine as the documenting process will take care of that. The boat has a plaque in it where i do believe it had been documented in the past.

I know, the boat was very wet when we opened it....it looks like rain!

[Cruiser2B]

Yes, I am a proud American!