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post #61 of 95 Old 02-02-2020
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Re: Best Eastern Seaboard State for Sales Tax

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Originally Posted by three-quartertime View Post
...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.........
Where one lives has virtually nothing to do with where they owes Sales or Use tax. The only relevance is that the waiting periods can change for residents. For example, a State may give out of state residents a period of time to leave and avoid their sales tax, but have no grace period for their own residents, even if they truly are going to move it elsewhere.

In your example above, the boat was actually moved to Delaware, so avoidance was likely fully compliant. Once they went on the move (cruising), they would be subject to the grace periods elsewhere, before Use Taxes applied. If one is constantly on the move, I'm sure all these taxes could legitimately be avoided. However, that does require constant movement. Some states assess Use Taxes in as little as 30 days and, like I said, your home state could be immediate.


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Re: Best Eastern Seaboard State for Sales Tax

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Originally Posted by three-quartertime View Post
....

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.
A similar situation happened to me, I had moved to MN after selling a boat I had owned while a MA resident. When ma dunned me several years after I moved. When I responded the boat had never been in MA, they responded if I could prove that then you would drop the demand which included four years of interest and penalties. Now the boat was kept on a trailer...if I had had out of state marina storage fees, etc. I would have been OK. If oferred to pay the tax amount and they accepted. PA may be back someday asking for proof...
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post #63 of 95 Old 02-02-2020
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Re: Best Eastern Seaboard State for Sales Tax

To be clear, Iím not offering anyone tax advice. I donít have any expertise in that area. Iím just writing about my personal observations/experiences.
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post #64 of 95 Old 02-02-2020
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Re: Best Eastern Seaboard State for Sales Tax

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This is mis-leading at best. Registration has nothing to do with where one owes sales or use tax. Only where the boat is moored. The above is a good description of tax evasion, not tax avoidance. The former is illegal.

Failure to pay, is fined. Intentionally deceiving authorites, by pretending your boat is elsewhere, is criminal.

You can not just register your boat in RI and avoid owing another State's taxes, unless it's actually in RI.

If you move it later, the new State will impose a Use Tax, if they have one. Most do.
Read the original post. The OP is taking off cruising. At no time did he suggest he was permanently leaving the boat in one tax jurisdiction while permanently registering it in another to avoid tax.

My post is hardly mis-leading [sic]. You might not like it, but talk to a yacht broker in RI, it's their shtick. The Newport Boat show advertises the RI no tax law. Do you honestly think they are marketing solely to to RI residents?

Buy a boat in FL, Register it in RI, take off cruising, follow the laws of each jurisdiction regarding vessel registration. Return and decide to store or moor your vessel in one particular jurisdiction and you may, or may not owe sales tax. Or, live in one state and keep the boat in RI do not have to pay sales tax on it.

Just wondering how much time you believe the Trump Princess actually spent in Nassau? It's OK for Kerry and Trump but it's not OK for the working man.

I hope you don't inadvertently remove your own right to vote

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Re: Best Eastern Seaboard State for Sales Tax

tax avoidance is a profession in the USA...

pay attention... someone's life depends on it
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Re: Best Eastern Seaboard State for Sales Tax

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Originally Posted by RobGallagher View Post
Read the original post. The OP is taking off cruising. At no time did he suggest he was permanently leaving the boat in one tax jurisdiction while permanently registering it in another to avoid tax.

My post is hardly mis-leading [sic]. You might not like it, but talk to a yacht broker in RI, it's their shtick. The Newport Boat show advertises the RI no tax law. Do you honestly think they are marketing solely to to RI residents?

Buy a boat in FL, Register it in RI, take off cruising, follow the laws of each jurisdiction regarding vessel registration. Return and decide to store or moor your vessel in one particular jurisdiction and you may, or may not owe sales tax. Or, live in one state and keep the boat in RI do not have to pay sales tax on it.

Just wondering how much time you believe the Trump Princess actually spent in Nassau? It's OK for Kerry and Trump but it's not OK for the working man.

I hope you don't inadvertently remove your own right to vote
Rob, you still seem to be missing the details. Yes, you can keep your boat in RI and not pay Sales or Use Tax, even if you're a resident of another State. That's exactly in keeping with what I've been saying. It only matters where the boat is, not where you live.

Buy a boat in RI, it's therefore in RI. No tax. Take it wherever you like and as long as you don't overstay the Use tax grace period in another state and you're good.

You can not buy a boat in FL and register it in RI and impact your tax liability in any way, unless you leave FL. One is welcome to register in RI, even if they are not there, but that doesn't change tax due elsewhere. If one is going to be on the run all the time and never stay in any jurisidiction long enough to incur Sales or Use Taxes, that works. However, registering in a State with no Sales tax is, therefore, moot.

I'm saying that registering in RI to intentionally make it appear that is where the boat is moored is illegal.

It's not a privileged thing, Kerry did not get away with it.


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post #67 of 95 Old 02-02-2020
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Re: Best Eastern Seaboard State for Sales Tax

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Originally Posted by Minnewaska View Post
Rob, you still seem to be missing the details. Yes, you can keep your boat in RI and not pay Sales or Use Tax, even if you're a resident of another State. That's exactly in keeping with what I've been saying. It only matters where the boat is, not where you live.

Buy a boat in RI, it's therefore in RI. No tax. Take it wherever you like and as long as you don't overstay the Use tax grace period in another state and you're good.

You can not buy a boat in FL and register it in RI and impact your tax liability in any way, unless you leave FL. One is welcome to register in RI, even if they are not there, but that doesn't change tax due elsewhere. If one is going to be on the run all the time and never stay in any jurisidiction long enough to incur Sales or Use Taxes, that works. However, registering in a State with no Sales tax is, therefore, moot.

I'm saying that registering in RI to intentionally make it appear that is where the boat is moored is illegal.

It's not a privileged thing, Kerry did not get away with it.
Again, the OP is planning on leaving FL for an extended cruise, did you read to original post? He is not asking about "being on the run all the time". If a cruiser stays in one state long enough they may be required to register their vessel in that state and pay any applicable taxes. Your entire post is moot.

Kerry could not "get away with it" unless you consider not committing a crime to begin with as getting away with it. What he did was perfectly legal, he purchased and moored the yacht in RI. Kerry voluntarily wrote a check to MA just to shut people up.

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Re: Best Eastern Seaboard State for Sales Tax

Oh boy. Kerry did not volunteer to do anything. He owed taxes to MA, because he overstayed the Use Tax period.

I've clearly read the OP. Leaving FL is fine. Registering in a non taxed State is useless to them. He plans to "the boat somewhere south of the Chesapeake Bay on a more permanent basis."

It will not matter whatsoever where it is registered. It will only matter what the rules are in that location, when they get there.


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Re: Best Eastern Seaboard State for Sales Tax

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Voting should be easy and it an obligation as a citizen. If you have a SS card... you can vote. Why can't an SS card be scanned for date of birth at the polling place? I suppose cheats will find a way to game whatever system... but the one we have in NYS is kinda stupid.



How about giving people $25 when they vote?
Sure, carrot and stick, the fines can pay for the rewards.

But there is effectively no cheating issue, that's 99.99% of the tme just a propaganda talking point by those seeking to suppress the poor and minorities from voting.

Pretty sure any systemic cheating scandals in recent decades that have actually had an impact on the results, have actually come from the right. . .
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Re: Best Eastern Seaboard State for Sales Tax

I think Dave ( the Op ) has several Challenges.

1st, You have to figure out where you permanently want to keep the boat. Research the Taxes there, and see if you can live with them. Probably the simplest option, maybe not the cheapest.

2nd, You've got to be out of Florida by early March! That's next month! I was thinking that you could document the boat and begin to move it North in March, but I don't think you have time to obtain a documentation, unless they or someone else is willing to expedite for a fee.

3rd, Once you start moving you'd have to research each state's grace period, and leave before you're assessed.

4th, Even if you registered in the two non-tax states that I'm aware of: Delaware or Rhode Island, and paid no Taxes, You would then be faced with moving your boat out wherever you decide to permanently dock her, before being assessed by the state where you're docking it.

5th, That begs the question. If you register in Either Delaware or Rhode Island, and keep moving, could you a year later re-register in Say North Carolina for argument sake, and not have to pay any sales tax.
It looks like North Carolina Has a 3% Sales tax on Boats with a maximum of $1500. But, I might be missing something..here! ( Like an additional personal property or use tax)

6th. Take a Look at North Carolina, If the above is correct, and I make no claim that it is, you could save a bundle.
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Last edited by tempest; 02-02-2020 at 02:36 PM.
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