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PalmettoSailor 08-14-2012 03:29 PM

Another Maryland tax question
 
I know there has been some discussion of taxes levied by MD when you bring a boat into the State, but I don't think I've seen anyone mention what happens if you were to take the boat out of MD water for a period of time (assume long enough to be taxed in another juristiciton) and then returned to MD waters after a period of time. Would you be subject to addtional use tax for bringing the boat back into MD?

Was Matt Rutheford presented with a tax bill for 5% of St. Brendan's value when he crossed back into MD waters after a year away?

sailingfool 08-14-2012 03:53 PM

Re: Another Maryland tax question
 
Sales/use tax is typically a one time event per owner/vessel/state. Some states allow credit for sales/use tax the owner paid in a different state.

ParadiseParrot 08-14-2012 04:12 PM

Re: Another Maryland tax question
 
Reciprocal State Taxes | The Auto Port Inc

Maryland appears to levy an excise tax not a use tax check with a professional.

RichH 08-14-2012 05:05 PM

Re: Another Maryland tax question
 
If you have a documented receipt of previous sales taxes paid in Maryland, or receipt of sales taxes paid to another state that is sufficient for Maryland - although Maryland will demand the 'differential' of what you previously paid if lesser than the MD 5% SALES tax.
This follows the same tax rules for most states for trans-location of automobiles, trucks, aircraft, etc. if you relocate ... if you paid less in SALES taxes to your former state, you OWE the 'new' state the difference.

The excise/use tax is a totally different issue that is required for bi-annual operation in MD. Caution - MD proposal to levy a yearly user tax of a % of the assessed boat value PER YEAR was recently rescinded and replaced with a stiff new 'user fee' of several hundred $US per each 'registration'.
more .... Maryland Department of Natural Resources - Boating

The important message here is dont delay in reporting relocation of a boat or auto to MD as there are very stiff fines and penalties if you are beyond 'the grace period' ... that grace period MUST be a documented grace period that proves that the vehicle was NOT in Maryland BEFORE the 'grace period' --- something like guilty before you unquestionably and ardent at great cost to yourself prove by precise documentation that you're innocent.

sailingfool 08-17-2012 02:18 PM

Re: Another Maryland tax question
 
Quote:

Originally Posted by ParadiseParrot (Post 909540)
Reciprocal State Taxes | The Auto Port Inc

Maryland appears to levy an excise tax not a use tax check with a professional.

I can't say how correct the info in that link is for Marlyland, its MA info is wrong.

Maryland does have a sales/use tax

Maryland Use Tax - Use Tax

and I would expect also an excise tax.

PalmettoSailor 08-19-2012 02:15 PM

Re: Another Maryland tax question
 
Thanks for the tax info but it didn't really answer my question. I know they have an excise or use or whatever tax. I've already paid that.

My concern was the ramifications of taking my boat out of MD for a year or more then bringing it back. Can MD tax you AGAIN under that scenario was the basic question.

ParadiseParrot 08-19-2012 02:20 PM

Re: Another Maryland tax question
 
Why don't you call the tax office and get the STRAIGHT SKINNY.

SeaQuinn 08-19-2012 02:27 PM

Re: Another Maryland tax question
 
If you are talking about sales tax....I don't think so. Sales tax is triggered when a boat changes ownership.....the tax is due at that time. If you pay it after you first purchase the boat you don't pay it again unless you buy another boat. moving it in and out of the state does not matter. Are you planning on keeping it registered in MD?

hellosailor 08-20-2012 12:12 AM

Re: Another Maryland tax question
 
Palmetto, you'd best contact MD with that one. Taking a boat away and bringing it back would NOT affect sales or use taxes, as they are one-time taxes. Property taxes get levied every year though, and excise taxes can be written in almost any way. If there was something that said "any boat imported into this state is subject to a fee of..." that would be nasty, but possible.

You might find a title fee problem, i.e. if you are required to title a vehicle (vessel) and there's a hefty fee for doing so, and you changed the title when you took it out, you might be required to retitle and pay again when you came back. Floriduh has some nasty title fees on cars, but treats boats differently. Some states treat cars and boats with engines as "vehicles" though.

Best to call MD though. They have some odd ideas there. Like, several school zones were posted in areas where there are no schools, no residences, no children. Because you can double the speeding fines in a posted school zone. Slick move, huh?

PalmettoSailor 08-20-2012 02:28 PM

Re: Another Maryland tax question
 
Quote:

Originally Posted by SeaQuinn (Post 911614)
If you are talking about sales tax....I don't think so. Sales tax is triggered when a boat changes ownership.....the tax is due at that time. If you pay it after you first purchase the boat you don't pay it again unless you buy another boat. moving it in and out of the state does not matter. Are you planning on keeping it registered in MD?

Its USCG Documented, so I only have a Documented Vessel use decal from MD.

That's currently $10 per two years, and would be easy enough to keep current if I want to move the boat south for a while.

If this becomes more than an academic excercise, I will call DNR, but from what I can gather from their website and forms, it would be no problem with MD so long as you kept the Documented Use Decal current.

You would likely be liable for tax in any other juristicion you stayed in for more than 90 days though.


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