[regor80]

Hello,

I'm thinking about buying a Sailboat. The seller is in Ohaio, I live and work in New York City and the most convenient Marina lies across the Hudson River in Jersey City, New Jersey. I'm planning to keep the boat all-year in that Marina. I'll be sailing in the New York Harbor and beyond...

The question is in which state do I need to register the boat and ultimately pay Sales & Use tax?

Thanks

 

[bubb2]

Hello,

I'm thinking about buying a Sailboat. The seller is in Ohaio, I live and work in New York City and the most convenient Marina lies across the Hudson River in Jersey City, New Jersey. I'm planning to keep the boat all-year in that Marina. I'll be sailing in the New York Harbor and beyond...

The question is in which state do I need to register the boat and ultimately pay Sales & Use tax?

Thanks

NY, the state of your residence. Just like if you bought a car in Jersey

 

[miatapaul]

But won't nj start looking for money after the boat is in there waters after a certain time? Are you sure you want to keep her in Jersey? Long Island sound has better sailing. NY harbor does not sound like much fun to sail in all the time with all the commercial traffic.

Sent from my DROID RAZR using Tapatalk

 

[tempest]

Your Boat will be " Based" in NJ; While it's called NY harbor, they share the Hudson with NJ.

I believe NJ considers 180 days of consecutive use in their waters a resident vessel.
It's not like buying a car in Ohio and taking it home to NY.
You will be keeping it in NJ. I think they will want it registered there.
You'd also need to take their Boating Safety Course.

Could you Register it in NY and keep it in NJ...without penalty... possibly, maybe probably..

But technically, I believe you will be a NJ vessel if kept there more than 180 days.

 

[ianjoub]

Chapman piloting says register it in the state you will be using it in.

 

[regor80]

That's exactly what I mean. It's not clear to me. For simplicity I'd like to stick with NY for the paperwork but I have a feeling they want me to register it in NJ because the boat spends most of its time there.

Each state allows out-of-state registered boats to cruise in their waters for a certain period of time before they require re-registration in their state. If sales tax is applicable in the new state of registration, most states will subtract the amount of tax previously paid, and only charge the difference in taxes. -- BoatUS​

Your vessel must be registered in its "State of Principal Use." "State of Principal Use" means a state on whose waters a vessel is used or to be used most during a calendar year. -- various DMV pages​

 

[Minnewaska]

First, you won't owe anyone Sales Tax. This assumes you are closing the deal in and Ohio, where you'll have to fill out a form in OH that are not a resident, nor keeping the vessel there, and will be exempt from their Sales Tax. The form may only be required, if the seller is a broker/dealer.

You will owe the State where you "use" the boat a "Use Tax". This rate is often the same as that State's sales tax and is due after a defined period of time that each state sets differently.

Nothing in your description suggests you will owe NY. However, if you document the boat with the USCG, the NY Department of Sales and Use tax will check those listing, match them up with your NY address and assume you owe them use tax. You will have to keep all marina and winter storage contracts to prove it was in NJ and they will go away.

Ironically, I have both purchased in OH, as well as had to prove the above to NY.

Do not volunteer to pay NY. You may still owe Use Tax wherever you actually are and just waste the money.

 

[tempest]

According to NY's registration site they call it a " Sales tax" and you pay it at the time of registration or provide proof that you paid it elsewhere. Unless you file an exemption form.

http://dmv.ny.gov/forms/mv821b.pdf

NJ is the same. NJ tax dept actually called me because the out of state broker collected and paid my NJ sales tax from Maryland. AFAIK both states call it a sales tax or sales/use tax.. in NJ it's 7%

 

[CalebD]

Well, there are other options besides a marina in NJ.
For one thing there is the 79th Street Boat Basin operated by NYC Parks, which, if you keep your boat on a mooring will be way cheaper than a marina in NJ.

Then there is the North Cove Marina, by the World Financial Center but it is tiny and extremely expensive and they probably wouldn't let you in anyway!
Then there is the Chelsea Piers complex which would probably only charge you about $8K for the season - not including winter.

Liberty Landing Marina (in NJ) now operates a small mooring field on the Manhattan side near Chambers Street #2 train. They operate a launch there in season and it is an almost brand new facility. This seems one of the best options to me (I live downtown).

NYC Parks also installed moorings just south of Pier 40 at Houston St. There is a dinghy dock here but the pier is old and facilities for boaters are not great. Should cost about the same as 79th St. Boat Basin.

If you like sailing in NY Harbor you will love the World's Fair Marina in Queens. It is the marina that is right next to LaGuardia Airport on the East River.

My boat is 25 nm. upriver at Nyack.

 

[Minnewaska]

Folks, you don't register the boat in NY, unless the boat is going to be permanently (or at least longer than the statutory requirement) in NY! Where you live makes no difference. You can have a NY address on a NJ registration.

If the boat is elsewhere, the state where the boat resides will still require you to register there.

Don't conflate registration and sales/use tax. They are not always the same thing, they just use registration as ransom to get your tax.

 

[edguy3]

NJ is the same. NJ tax dept actually called me because the out of state broker collected and paid my NJ sales tax from Maryland. AFAIK both states call it a sales tax or sales/use tax.. in NJ it's 7%

In my case, the mere presence of an NJ address on a Maryland sale's document was enough to get the NJ tax collector chasing me. Although the boat was in NJ and I had already been to the DMV to register, they had no practical way of knowing either of those facts. ( I was waiting further coast guard documentation in order to complete the registration process. )

During the process, I had a nice chat with the tax guy about registering out of state. He indicated that NJ residents owe the tax immediately upon bringing the vehicle into NJ, not 180 days later as I thought. We discussed an example of keeping the boat in Delaware and, technically, if one crossed the mid-point of the Delaware river, the tax would be due immediately. ( The tax would be subject to a credit for any sales/use taxes already paid. )

On a related topic, Liberty landing is in reduced sales tax zone, but sadly, that rate doesn't apply to motor vehicles.

/ed

 

[Minnewaska]

.....He indicated that NJ residents owe the tax immediately upon bringing the vehicle into NJ, not 180 days later as I thought.....

Use taxes often have different triggers for residents and non-residents and immediate is not unusual.

In the OPs case, they might very well come across the river to NY and technically incur the use tax. However, they will still owe the NJ use tax for being within their state permanently.

If the OP does plan to take their boat to NY, I believe they should still pay NJ and determine if NY has an offset for what they pay to NJ. If so, perhaps pay the difference to NY and be done with it, which I think is done on your annual state income tax form, if you aren't actually registering in NY.

 

[JimsCAL]

Whatever you do, keep records of any taxes paid so if you move the boat, you don't have to pay them again.

 

[JimMcGee]

Hello,

I'm thinking about buying a Sailboat. The seller is in Ohaio, I live and work in New York City and the most convenient Marina lies across the Hudson River in Jersey City, New Jersey. I'm planning to keep the boat all-year in that Marina. I'll be sailing in the New York Harbor and beyond...

The question is in which state do I need to register the boat and ultimately pay Sales & Use tax?

Thanks

Regor, don't make it more complicated than it needs to be. If the boat will be berthed in NJ you need to register the boat in NJ.

When you register the vessel you will either need to pay the sales tax or show documentation that you paid the equivalent tax to another state.

If you later move the boat to NY you will need to register it with New York.

Keep copies of your slip and winter storage agreements in case NY comes looking for the tax. If they do just send them copies to show the tax was paid and the boat is registered in NJ.

If the boat includes a dinghy NJ will require a separate bill of sale to register the dinghy. If included have the seller or selling broker draw up, date and notarize a bill of sale for $1. You cannot register the dinghy otherwise. You will also need to present the dinghy at a NJ state police marine barracks where they will run the serial number to confirm it's not stolen.

NJ is NOT consistent on this, so some may respond a separate bill of sale isn't necessary. Ask me how I know...

Good luck. Describing my experiences with boats and NJ motor vehicles as "inconsistent" is an understatement.

 

[regor80]

Thank you all. This is very useful information.

 

[tempest]

I agree with Jim above...and not to complicate your life further, if you register in NJ you'll also need a NJ safe boating certificate unless you have a coast guard license. You can take the course on line from a company like boat-ed and go to any number of testing centers.
I think the package is about $69.00.

 

[edguy3]

...if you register in NJ you'll also need a NJ safe boating certificate unless you have a coast guard license. ...

Not that it is a bad idea, but I thought the motorboat license was only needed for freshwater use...

State of New Jersey - Motor Vehicle Commission

MVC issues motorboat and personal watercraft licenses for use on fresh, non-tidal waters or lakes, creeks or rivers not affected by tidal conditions. A boat license and New Jersey boat safety certificate is required to operate a power vessel or personal watercraft - jet ski or waverunner - on non-tidal waters of New Jersey. A boat license is not required for non-powered vessels.

 

[tempest]

Not that it is a bad idea, but I thought the motorboat license was only needed for freshwater use...

State of New Jersey - Motor Vehicle Commission

It's a bit tricky here in the Garden State. For tidal waters you need a boating safety certificate. This is just a card that currently has no expiration. No Motor Vehicle division involvement required. Online course, and an in-person exam.

For "non-tidal" waters you need to take your boater safety card to motor vehicle div. and have them put a "B" endorsement on your driver's license.

The Hudson River is tidal...so only the Safety card is needed.

 

[TakeFive]

From reading this, it appears that that a non-powered sailboat (sailing dinghy like a Sunfish or Phantom) on non-tidal waters does not require any sort of certificate in NJ. True?

 

[tempest]

From reading this, it appears that that a non-powered sailboat (sailing dinghy like a Sunfish or Phantom) on non-tidal waters does not require any sort of certificate in NJ. True?

True