[rockDAWG]

It is apparent that MD allows the out of state boat in MD water for 90 days. Is this is a life time of the boat deal? Can one leave Maryland for a day and come back for another 90 days.

 

[Skipper Jer]

Google is my friend.

From http://dnr.maryland.gov/boating/pdfs/recreationvessels.pdf


"A vessel duly registered in another jurisdiction may enjoy Maryland waters for a cu
-
mulative total of 90 days in a calendar year without being required to pay vessel excise
tax. A vessel may remain longer than 90 days so long as a majority of the year is spent in
another jurisdiction (i.e. Florida for 7 months and Maryland for 5 months). "

Of course the crux of the matter is how one (either the state or the boat owner) proves that the vessel either violates the above or adheres to the above.

 

[Tim R.]

What if excise tax is already paid in another state?

 

[TakeFive]

Maryland is known to be strict about enforcement of this, to the point of sending agents to marinas to scout out violators. A boat with Delaware registration numbers or hailing port gets especially close scrutiny, since the "register in Delaware but keep it in Maryland" scam is well known. If you are going to make a claim that you normally keep your boat in Delaware or another state, you had better be sure to save your marina contracts to prove it.

 

[TakeFive]

What if excise tax is already paid in another state?

Maryland claims to offer reciprocity to most states, so if you save your paperwork that proves you already paid sales, use, or excise tax to another state, you should get credit for the amount you have already paid.

I have heard that Maryland does occasionally make some unreasonable demands. I did get a taste of this last year when I purchased an inexpensive dinghy from Amazon, which charged me PA sales tax for my purchase. When I went to register the dinghy in MD, they insisted on charging me sales tax AGAIN, even though I had a receipt that proved I had paid it to PA already. They said they would only credit the tax if I had paid it to PA as part of a boat registration. They suggested that I register the boat in PA first, then transfer it to MD. But this would have cost me more than the sales tax (which I suspect they knew), and I needed the dinghy for an upcoming cruise, so I paid the double-tax, but it left a very sour taste in my mouth.

 

[jorgenl]

You can always hang a "For Sale" sign on the boat ... ;-)

 

[hellosailor]

Use tax is generally on a par with sales tax, but an "excise tax" may be something entirely different from those, based on separate logic, and I wouldn't expect any state to give you a break on one based on the other. When in doubt, ASK THE TAXMAN DIRECTLY.

 

[Donna_F]

Maryland claims to offer reciprocity to most states, so if you save your paperwork that proves you already paid sales, use, or excise tax to another state, you should get credit for the amount you have already paid....

I think you are correct. Things may have changed, but when I bought my first boat in PA and moved it to MD, I only had to show proof that I paid sales tax to PA. They didn't request anything beyond the registration fee.

 

[TakeFive]

Use tax is generally on a par with sales tax, but an "excise tax" may be something entirely different from those, based on separate logic, and I wouldn't expect any state to give you a break on one based on the other. When in doubt, ASK THE TAXMAN DIRECTLY.

Maryland offers reciprocity on its excise tax:

Maryland Department of Natural Resources - Boating

Here's some other informal advice:

Annapolis Admiralty and Maritime Law Attorneys Lochner Law Firm, P.C. - Admiralty and Maritime Law, Boat, Boatinglaw, Boating Law, Law - BOATINGLAW.COM - Maryland Boat Tax 101

There are some excuses that will definitely not work. For example, "I didn't know I owed it;" "I thought the broker paid it;" "I registered the boat in Delaware;" "The vessel was on dry land for most of the year." All of these arguments do more harm than good. Particularly, "I registered the boat in Delaware" is like blood in the water to tax enforcement personnel. Remember, too, that your boat does not even need to be in the water-if it is in a high and dry boatel, and ready for the water, DNR will consider it ready for use and expect the tax to be paid.

 

[rockDAWG]

Thanks for the info. I guess we can keep the boat for 90 days in MD. We spoke with the boat yacht people, was told that Maryland is not really go after the people who bring the boat to MD for repairs. We really have no interest sailing the Bay. No one will have any right mind to pay 5% of boat value which is about $1.8 mm. This tax is not a small change.

When the work is done, I will sail her to New England. If our 90 days is up, I guess I can take her to Newport, RI for any remaining repair. It is a diminished return for the state. If you want to exercise more taxes, you just chase people with money away.

 

[sailpower]

T It is a diminished return for the state. If you want to exercise more taxes, you just chase people with money away.

FL finally figured it out and in 2010 capped their 6% sales/use tax at $18,000.

Revenue is up!

MD used to let you keep the boat in MD without tax penalty if it was legitimately being repaired and for the duration of the repair.

 

[hellosailor]

dawg, you also might want to check if Maryland is counting 90 days in the state or 90 days in state waters. There's a big difference, boats that are hauled are not in state waters.

So oddly enough, in tax-ageous New York, when you haul, the clock stops. When you hop across the sound to CT or NJ, the clock even resets, because they count contiguous days in the waters.

Don't believe a clerk on the phone, find something in writing, to be sure.

 

[Minnewaska]

....If our 90 days is up, I guess I can take her to Newport, RI for any remaining repair.....

Now you're talking! Bring her on up. Our chandleries, marinas, restaurants, shops, etc, will all welcome you with open arms. No sales or use tax on boats in RI. This is why! Half the boats in our marina are from out of state owners, many from out of country! Our residents make a living off them!

RI does require boats that remain more than 90 days to be registered in RI. Bi-annual fee is around $600 for boats over something like 30 or 40 feet. I don't see a ton of enforcement on that, however. If a boat is federally documented, its hard to tell from the dock whether its properly registered.

 

[rockDAWG]

Now you're talking! Bring her on up. Our chandleries, marinas, restaurants, shops, etc, will all welcome you with open arms. No sales or use tax on boats in RI. This is why! Half the boats in our marina are from out of state owners, many from out of country! Our residents make a living off them!

RI does require boats that remain more than 90 days to be registered in RI. Bi-annual fee is around $600 for boats over something like 30 or 40 feet. I don't see a ton of enforcement on that, however. If a boat is federally documented, its hard to tell from the dock whether its properly registered.

Cool....

Owner and I have a plan to take Perry 59 up to New England and beyond this year.

 

[WouldaShoulda]

FL finally figured it out and in 2010 capped their 6% sales/use tax at $18,000.

Revenue is up!

Wait a minute...

No one cares if lowering rates increases revenue.

We want fairness!! :laugher

 

[hellosailor]

"Half the boats in our marina are from out of state owners, many from out of country! Our residents make a living off them!"
Interesting story about Newport, RI. When planning to replace the old bridge was being discussed, there was a heated conversation about how many lanes the new one should be. The old one was obviously too small, total logjams on summer weekends. The proposal was to double the number of lanes on the new one.
And the town fathers shot that down, they said don't you dare do that, there's enough riff-raff coming into town on the existing one already. (The "new" bridge has the exact same number of lanes, and the exact same logjams.)

Yachties? Good lord, yachties might be living on Mansion Row. Or be visiting someone who lives there. But daytrippers, transients...you can turn 'em upside down and shake 'em all day, and nothing but pocket lint falls out. At least yachties might need to BUY something.

Which might also explain why you can't fly into Newport on commercial aviation, or get off at a train station. Nice way to build a walled city, without the expense of walls.

 

[Minnewaska]

The bridges (Newport and Jamestown) were both full of controversy. Still are. The bridge across the Sakonnet now too. Nevertheless, the year round number of tourists in Newport has not suffered, so it's hardly walled in. They are most welcome.

In Newport, its not the number of lanes on the bridge, it's the toll gates and the single lane to get off the other side and into Newport that has been the traffic limiter. No way to fix the single lane access to the city without some serious eminent domain, in part over a cemetery. They've recently installed high speed EZpass tolls on the bridge, so you don't even slow down to pass now. Much better. Still everyone will still be jammed up trying to get off the bridge.

 

[outbound]

Easy way to get around that Minne. Sail There!!! Go early and you may get a place to anchor not moor so have enough money for a pair of gloves at Team One.
Sure do like the new yacht center though.

 

[Minnewaska]

Easy way to get around that Minne. Sail There!!! Go early and you may get a place to anchor not moor so have enough money for a pair of gloves at Team One.
Sure do like the new yacht center though.

Cheers to that. Drop a hook, grab a mooring, even a slip. All are welcome.

 

[RichH]

Thanks for the info. I guess we can keep the boat for 90 days in MD. We spoke with the boat yacht people, was told that Maryland is not really go after the people who bring the boat to MD for repairs. We really have no interest sailing the Bay. No one will have any right mind to pay 5% of boat value which is about $1.8 mm. This tax is not a small change.

When the work is done, I will sail her to New England. If our 90 days is up, I guess I can take her to Newport, RI for any remaining repair. It is a diminished return for the state. If you want to exercise more taxes, you just chase people with money away.

THIS IS ENTIRELY FALSE .... If your boat, for ANY REASON whatsoever, is within MD and exceeds the '90 day grace period', you OWE the 'differential' of any sales taxes paid .... plus interest, plus penalties. Have the tee-shirt.

My present boat was 'delivered' to MD and with work to be completed before launch. During that year a blizzard caused all work to be postponed for an extended period of time before launch and the boat was in MD on the hard beyond 90 days ... actually 120+ days. I paid immense fines, penalties, and interest.