boat taxes

[jandjonland]

We have been cruising in Mexico and Central America for the last 5 years and are now working our way up the East Coast. We hope to be in the Chesapeake Bay by next spring. We have heard that if you stay in the Bay over a year or so that Maryland will collect a 6% tax on the value of your boat. Is that true or are there other taxes like this that we should be concerned about? We plan to stay in the Bay at least a couple of years.

Thanks,

Joe and Jacque
s/v Marna Lynn
Alameda, CA
currently in Brunswick, GA

[SailorMitch]

Check this site for info on Maryland and taxes. Assuming your boat is documented, you may have to pay a tax of up to 5 percent unless you can show you paid a similar tax in another state. This applies only if your boat spends more time in Maryland waters than another state.
http://www.dnr.state.md.us/boating/r...vessel_reg.asp

[camaraderie]

J and J... there is currently only a pittance ($25 bucks or so) personal property tax in Norfolk, Portsmouth and Hampton Roads. Anywhere else in MD or VA will take a chunk out of your cruising kitty. The taxes are generally assessed in January so you can cruise around the bay in the good weather as long as you do't sign any long term dockage contracts until you settle in for the fall in the Norfolk area.

[hellosailor]

jandj-
It sounds like Maryland applies a strict and simple 50% rule, i.e. if the boat is there more than 182 days a year, they own you. You might want to contact them in writing to find out if it is that simple, or if they provide for vessels in slow transit, etc.

Each state has their own regulations about boats and motor vehicles. Generally, you can expect a local "burden" sometime after you have had a motor vehicle in a state for 30 days. Sometimes that's tax, sometimes that's registration, but yes, it is that short in some states. State and federal rules about "domicile" versus "residence" may also come into play, you'll need to check that out too.

In many states the time period is tolled by moving in/out of their waters, it looks like Maryland doesn't let you cheat that way, they may just be counting days.

[pfbanyas]

The important thing to remember in Maryland is that the rule is not just 50% of the time must be outside of Maryland. You must have more time in another SINGLE state than you do in Maryland. So 4 months in Maryland and then 3 months in VA and 3 months in North Carolina and then 2 months in DC means Maryland will come after you for taxes. The other bogus Maryland deal is that Maryland wants you to pay the tax upfront before you have been in the state for 90 days if you plan to stay for more than 90 days even iof you plan to go elsewhere for more than 4 months in another state. Then there is currently NO FORMAL METHOD to request a refund of your excise tax even if you can prove you are entitled to get it back. This link to MD DNR. Just be careful they play dirty. When I was there a boater took them to court over the wording of their tax law saying the intent was not to tax people who were visiting with no intent to have MD their primary state of residence. The day after he won the legislature modified the tax law to close the loophole so it applies to anyone who boats in MD waters. BTW the Potomac is all in MD up to the Virginia shoreline.
http://www.dmarine.net/maryland.htm