boat purchase, taxes, residence -- help for NW sailer?

[dillport]

I still say the state is entitled to sales tax on purchases made in that state. It is entitled to use tax on purchases made out of state with the intention of bringing that purchase into the state. It is not entitled to tax on a vehicle, boat, or aircraft which was purchased in a state which does not charge sales tax, if it was intended for use in that state, used in that state, and based in that state.

If I buy a boat in Oregon and keep it there for ten years, satisfying Oregon''s requirements for my ownership there, then move it to Illinois, why should Illinois profit because Oregon chose to tax me in other ways? If bought the boat in Michigan, paid sales tax, then ten years later take it to Illinois, the cost to Illinois of my subsequent use is no greater than the cost of my use of the Oregon boat--yet many states choose to tax if I cannot prove I paid sales tax initially. This is simply wrong--a misinterpretation of the law by collectors.

Incidentally, I understand that Indiana has been re-thinking its policy of charging use tax on aircraft brought into Indiana years after the original lawful, yet sales-tax-exempt original purchase--only because it has been challenged.

I condemn taxing of boats lawfully exempt from sales/use tax by reason of their state of purchase/use/base--I am not suggesting that one ought to escape the tax if he buys and uses the boat in state which did charge sales tax at the time. But those states which do not have sales tax finance their operations in other ways, by other means (taxes). A fellow who lives up to the Oregon requirements then has to "catch up" on sales tax when moving into another state gets hit twice. This is punitive--discouraging moves, impinging interstate commerce, and defeatable if properly challenged.

Being responsible and paying one''s share is important--but the arm twisting by non-thinking bureaucrats really pisses me off.

A class action ought to be filed for all those folks who really were exempt, but were induced to pay such windfalls to their new states. Then, I ''d wager, the authorities would figure out what is correct and what is simply overreaching.

Sorry for the ranting.

LD

[WHOOSH]

There sure seems to be a wide collection of views on this topic but a limited amount of factual data.

Boats that are documented will not require state registration...but they will be subject to a separate sticker-registration process that is implemented by states to track boats for tax purposes. State taxation determination is made independent of which registration process is used.

States typically (not always) establish a ''temporary'' period during which visiting boats may use their waters without being liable for either of the registration processes. After that, they want the boat to go thru one of these so a taxation determination can be made.

Typically - again, I don''t think this is universal but nearly so - if a boat is purchased in State A and sales tax is assessed and paid, the boat will subsequently not be assessed use tax in State B (e.g. when it is permanently relocated there) EXCEPT that some amount of use tax will be assessed that is equal to the difference between the lower amount assessed and paid in A than is required in B. So e.g. if you purchase, register and paz sales tax in NC and the amount due is $1000, then subsequently move the boat to FL (for which a use tax of $2500 is due) you could then be found liable for the balance of $1500. (The $$ amounts are just to illustrate the point...)

Some new owners contemplate a ''stateless'' vessel because they reason that they won''t be permanently located in any one jurisdiction and therefore can escape all tax liability. Instead, what they do is place themselves in a position of liability to the first taxing authority that finds them.

Hopefully this helps a bit...

Jack

[Magic_Moments]

I bought my last two boats in Washington and have a small amount of information.

If you buy the boat out of state and bring it in they will try to charge you sales tax if it is within 90 days of the closing.

Sales tax is determined by which county the boat will be residing in. I bought my first boat in King County and lived there so I didnt know this, but my second boat was in Skagit County (Anacortes) while I lived in Snohomish Co. At the time the sales tax was 7.9 in Skagit, but 8.2 in Snohomish, so it made a difference.
I am not sure about marinas on the Kitsap side, but for 35 to 40 foot slips between Seattle and Bellingham, there is a two to ten year waiting list to get in. Some marinas (Port of Everett) will allow you to stay in the slip the boat is in when you purchase it, but some (Cap Sante) make you leave after two months and give the slip to the next on the list.

There are also liveaboard waiting lists at most marinas except I think Port Orchard (Bremerton). One of my friends just got caught living on his boat while he is in school and he is lucky the boat was not evicted, but they are now keeping track of him. If you are planing to mostly anchor you can avoid most of that issue, but state parks limits stays on their moorings too 3 days. I just learned that none of the moorings in Sucia State park have been checked since 1999 and they are starting to have problems, so anchoring is better and free.
Some places had allowed liveaboards to be anchored out on their own moorings like Eagle Harbor (Winslow) on Bainbridge island, and False Creek in Vancouver BC, but I heard on the news today that they are clearing all the anchored boats out of False Creek prior to the Dragon Boat races, so some people will have to call the RCMP to find their boats new location.

Right now the U.S. charges a $30 fee annually for boats over 30 feet to enter the US. You can clear customs by telephone most of the time without going to a customs dock. However skip this procedure once and you will be searched each and every time that you cross the border on both sides. The Canadian officials tend to be very friendly while the US tend to be somewhat less so.

I might do some research on what it takes to get residency in Alaska since they also get the oil bonus which can be $1000 per year, but otherwise I would stick with Washington.

I know Olympia expanded its marina and Everett is expanding in the next 15 years and Bellingham is adding a new 600 slip marina in 15 years. I have my boat in Blaine which added 400 slips in 2000 and has some very consistantly good winds in Boundary Bay/Strait of Georgia, and the San Juans and Gulf Islands are 15 miles away.

I don''t what kind of marina availability BC has, but I do know that Blaine fills up with Canadian boats in April/May til the Law chases them all out in the fall. I think they are allowed up to 6 months in the US. I don''t know how long US boats can stay in BC. I believe the taxes are higher there than in Washington.

Ken

[sailaway21]

Lou Dobbs is on a different channel.

[Geronimo33]

It is my understanding North Carolina law requires the Harbormaster to conduct an inventory of boats present on 1 January each year and report the results to the State. Thus it would seem if one was not at the dock on New Years Day....one would not appear on the inventory.

I cannot speak of the other Taxes but assume North Carolina's love of taxes then there exists a risk of one's purse being lightened in numerous ways.

[camaraderie]

Geronimo...this is a 2 year old thread....but you're right... NC will get you on personal propery tax, checks marina records and contracts and assuming your boat is registered...someone will tax you unless you can PROVE you keep the boat elsewhere.