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post #1 of 23 Old 02-24-2016 Thread Starter
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Tax for USA bound boat?

Hi All,

My wife and I had a boat built in France and sailed it to Panama in 2013. We plan on taking to the east coast of the USA in April. We have not payed any taxes on the boat,( USA registered) in the USA or Europe. No Vat in Europe because boat was going offshore. By the way we are Americans from Oregon.

My questions are:

% of tax one pays to federal gov?

Is tax on base cost of boat?

Is tax on everything including electronics, pots and pans, extra sails, etc?

Will customs even ask when we check in in Key West?

Last, the boat will not reside in the USA only there for one year before going offshore again. Must we pay tax if planning not to keep boat in USA?

Thanks

SV RC LOUISE
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post #2 of 23 Old 02-24-2016
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Re: Tax for USA bound boat?

Its about 1.75% so not much.

I don't know the rest of your laws.

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post #3 of 23 Old 02-24-2016
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Re: Tax for USA bound boat?

If you are considering bringing the boat to Florida you may want to read the following.

http://dor.myflorida.com/Forms_libra...t/gt800005.pdf
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post #4 of 23 Old 02-24-2016
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Re: Tax for USA bound boat?

As MarkofSeaLife pointed out, the import taxes are are under 2% check according to Customs & Border Patrol cbp[dot]gov
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post #5 of 23 Old 02-24-2016
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Re: Tax for USA bound boat?

There are some US states with no sales/use tax on boats (Rhode Island is exemplary on this), while Florida is 6% and California can be up to 10%. I wonder if it's possible (I'd guess not) to bring it into a no-tax state, sit for six months, then move to say Florida and thus escape Florida's use tax. Somebody's going to tell me that won't work, I'm sure.
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Re: Tax for USA bound boat?

You are not paying "tax" you are paying import duty or tariff to the Fed. You pay that if you bring the foreign-made boat into the US, even for the afternoon, unless there's some exemption you can find.

"Tax" would be due to the state where the vessel was documented, regardless of where the purchase was made. That state's tax authorities will have gotten the federal documentation information in most cases, and sent you a bill as soon as they did. Leaving you to prove that you were not liable for sales or use tax on the purchase.

Whether sales of use tax was due, or will be due, varies with each state. If it was due, it may now be due with penalties and interest. Again depending on the state.

So you'll need to do some research based on what your documentation port was, what your residency was, and what you residency is going to be when you bring it in.

Yes, you can be looking at 8% sales or use tax, now with multiple years of compounded interest and penalties that easily exceed the tax amount. It all depends on what those tax venues were and will be. And if you stay in any state for typically 90 days or longer? You'll often be required to register in in that state as well, and sometimes pay sales or use tax at that time.

Again, "it depends". You'll need to make very specific inquiries and plans.
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post #7 of 23 Old 02-24-2016
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Re: Tax for USA bound boat?

Oregon has no (zero) sales tax. For possible customs duty, ask the customs folks.
Long ago, I once imported a CN-built sailboat back in the 80's and did have to write out a check to US Customs.
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post #8 of 23 Old 02-24-2016
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Believe the fed customs duty is paid for all imported boats if landed here.
Believe it was part of the cost of my boat as well as it was built in mainland China although sold by the US based manufacturer to me in the US.
Think this is true but not recognized by most first owners as they don't see that bill if bought through US dealer.
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post #9 of 23 Old 02-24-2016 Thread Starter
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Re: Tax for USA bound boat?

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Originally Posted by outbound View Post
Believe the fed customs duty is paid for all imported boats if landed here.
Believe it was part of the cost of my boat as well as it was built in mainland China although sold by the US based manufacturer to me in the US.
Think this is true but not recognized by most first owners as they don't see that bill if bought through US dealer.
Thanks all for the info.

I hear you Outbound. We never intended to bring the boat to the USA, ever! But with my wife's illness I thought it would be nice if she could do some easy enjoyable sailing close to medical help if needed. I don't mind paying what ever the duty is like maybe 9 G's if we were going to keep the boat in the states, that's a fair price. But we just want to be here for 5 months then gone again. We will sell the boat overseas where the boat is in such great demand, anyway that has always been our plan.

So do you pay on the bill of sale price or do you have to show all other costs? Like pots and pans, electronics, safety gear, etc?

Another interesting thing is a Boreal 44 has never been sold to a secondary buyer so it will be interesting how I devalue the price of the boat. I get emails all the time from people asking me if I want to sell my boat and at any price because they don't want to wait in line for a new one.
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post #10 of 23 Old 02-24-2016
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Believe we paid duty on the boat alone. I had various stuff shipped there and installed. If that stuff came from US and had sales taxes paid think it was discounted off duty. As that showed it was either US made or already had duty paid. But if from Germany or France and went directly to China duty was paid on value when imported into US. If stuff came from Europe was imported here then shipped to China think second duty charge was not made.

Think you could show your contract showing just price of boat for purpose of importation and be fine. Could ask them over the phone to be sure. Could be anonymous if paranoid ( you're not paranoid if they are really after you).
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