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.What if excise tax is already paid in another state?
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.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....
Maryland offers reciprocity on its excise tax: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.
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.
FL finally figured it out and in 2010 capped their 6% sales/use tax at $18,000.T It is a diminished return for the state. If you want to exercise more taxes, you just chase people with money away.
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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!....If our 90 days is up, I guess I can take her to Newport, RI for any remaining repair.....
Cool....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.
Wait a minute...FL finally figured it out and in 2010 capped their 6% sales/use tax at $18,000.
Revenue is up!
Cheers to that. Drop a hook, grab a mooring, even a slip. All are welcome.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.
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.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.
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