Join Date: Nov 2012
Location: Wilmington, DE
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Re: Best Eastern Seaboard State for Sales Tax
I am a Delaware resident. The state does not have sales tax.
About three years ago I met a couple on the Chesapeake who were residents of the state of Kansas. They had purchased their boat in Connecticut. Then they Immediately moved the boat temporarily to a Delaware marina where they registered the boat to avoid paying a sales tax. As I recall, they got some work done on the boat while at the marina, and afterwards left to cruise full-time until they decided to sell the boat.
Likewise, I occasionally see boats in various places, for example New England, Florida, the Bahamas, that have on their transom a city in Delaware as their home port. When I get an opportunity to talk to the owners, they invariably admit they donít actually live in Delaware. Itís just where they registered the boat. So apparently thereís a way of doing it.
Me, I keep my boat in Maryland and paid the Maryland tax when I purchased it. While I hate paying it, I figure just pay it and be done with it. I donít want to worry about getting hassled some day. . The Maryland DNR has been known to scour marinas looking for boats that do not have a Maryland registration sticker.
A problem the OP may run into is one I encountered when I lived in Pennsylvania. One day I got a letter from the state Dept of Revenue saying I owed tax on my boat. I canít recall what kind of tax they called it. I sent a reply letter stating that the boat had never been in Pennsylvania, it was ďhousedĒ (my accountant recommended using that term) in Maryland, and it would never be in Pennsylvania as long as I owned the boat. I never heard back from the Department of Revenue.