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My wife and I are considering locating our catamaran in the Puerto Del Ray marina in Fajardo, Puerto Rico. We will not be full time residents on the boat initially but will spend considerable time on it exploring the USVIs. I'm trying to see what the property tax would be on the boat and haven't had any luck searching except that the rate in Fajardo is 11.5%. Does anyone here keep a boat in Puerto Rico? Is the tax really 11.5% each year?
 

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This will be fairly complicated for anyone to answer here. There are three things you need to research. Use Tax, Property Tax and Registration fees.

Whether each applies, will depend on how long the boat is there, where your permanent residence is located and how long you are in Puerto Rico and maybe other factors.

Taking a leap here, if you live elsewhere, but keep your boat there year round, I would expect you to have to navigate Use Tax and Registration fees, but not personal property tax, which is typically owed by residents of jurisdictions. YMMV
 

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My wife and I are considering locating our catamaran in the Puerto Del Ray marina in Fajardo, Puerto Rico. We will not be full time residents on the boat initially but will spend considerable time on it exploring the USVIs. I'm trying to see what the property tax would be on the boat and haven't had any luck searching except that the rate in Fajardo is 11.5%. Does anyone here keep a boat in Puerto Rico? Is the tax really 11.5% each year?
It is my understanding that in PR "Personal Property Taxes" are payable on business assets only. A boat is "Personal Property" (vs. "Real Property") but if not being used in business, would not be subject to taxation. Other taxes would apply of course, use tax, taxes associated with registration et al. The wise thing to do would be to contact a CPA/accounting service in PR to get an accurate read on the matter.

FWIW...
 

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Never heard of such a tax. I've never heard of issues in PR like FL, ME and other States have with registrations (and "use tax") payments for hanging around more than 60 days. Enforcement, though, down here can be quite selective.
 

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Thanks for the comments so far. I think the comment that it only applies to residents and businesses may be correct. Your comments made me dig further-- from the 2017 (latest that is posted) instructions on the CRIM site: "WHO MUST FILE A PERSONAL PROPERTY TAX RETURN: Every natural person or legal entity engaged in an Industry or business which on January 1, 2017 is an owner of personal property is rented to another person or in the possession of such property where the owner is outside Puerto Rico or cannot be located, shall complete and file such return."

I have the page on the CRIM site showing the different rates for each municipality if anyone wants to see them, but I cannot post the link here.

I know the use tax and registration taxes, and they are reasonable: $10,000 max excise/use tax, and a few hundred a year max registration.

So bottom line, unless someone here knows otherwise, it appears as though private property (boats, cars, etc.) owned by resident individuals and non resident individuals are exempt from the personal property taxes.
 

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IIRC Florida also has a misnamed "personal property tax" which is also only levied on the property of a BUSINESS based on what they own on January 1st each year, or something like that. There's nothing "personal" about it. Of course there's a movement in Congress (again) to force statehood on PR, or "liberate" it, so don't make any five-year plans.(G)
 

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I’ve got some exposure to Puerto Rico. Government there is highly disfunctional and everyone admits it. A board I’m on is rebuilding housing there, post hurricane. Crazy system.

One major point of stress is that, not being a State, PR residents do not pay Federal Income Tax. However, the island receives billions in Federal support, funded by income taxes. There is no requirement that any jurisdiction break even with taxes and receipts. The rub is they only pay Medicare.
 

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I’ve got some exposure to Puerto Rico. Government there is highly disfunctional and everyone admits it. A board I’m on is rebuilding housing there, post hurricane. Crazy system.

One major point of stress is that, not being a State, PR residents do not pay Federal Income Tax. However, the island receives billions in Federal support, funded by income taxes. There is no requirement that any jurisdiction break even with taxes and receipts. The rub is they only pay Medicare.
Really, not a lot more "dysfunctional" than Stateside, from whence they take their cues, but admittedly a lot more open about it. And pretty hefty taxes to the PR government. As well as FICA (or SE Tax) to the IRS Stateside, just like the Virgin Islands. Just not the Federal income tax, but it's pretty much made up in PR taxes, and all the V.I. is is a "mirror" tax system. File a 1040VI, pay your SS taxes and Medicare, etc. Stateside (or your SE tax). 15.41% (or something like that) from every dollar of earned income goes to Uncle Sugar.
 

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And pretty hefty taxes to the PR government.
Exactly, which would have to decline, should statehood be adopted. Presumably, the federal government would assume some of the programs and cost. However, the local government officials would be neutered, to a degree, and that’s the rub.

Puerto Rico should be a national treasure. It has everything from history to culture to food, coffee, beaches, rainforests and scenery.

It’s original military and trade center value has all but disappeared, so it needs a new purpose. Tourism could be increased 10 fold, but not with all the negativity and corruption. It has the foundation to be a paradise.
 

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Exactly, which would have to decline, should statehood be adopted. Presumably, the federal government would assume some of the programs and cost. However, the local government officials would be neutered, to a degree, and that’s the rub.

Puerto Rico should be a national treasure. It has everything from history to culture to food, coffee, beaches, rainforests and scenery.

It’s original military and trade center value has all but disappeared, so it needs a new purpose. Tourism could be increased 10 fold, but not with all the negativity and corruption. It has the foundation to be a paradise.
'Ol GWB pretty much put the kaibash to the military base at Rosy Roads and "taught those 'Rican's a lesson" after they complained about a civilian observer getting blown to smithereens in an observation tower on Vieques back around 2003 along with the Navy's wholly unnecessary use of depleted uranium rounds when they blew the crap out of the island for practice - with civilians in the middle of the island and gunnery and bombing ranges on E and W ends. You know the ship that you can see the outline of in the Bimini Atoll nuke tests? The Navy towed it all the way from the S. Pacific, through the canal and bombed the **** out of it on the East End of Vieques. Heavily irradiated. There's no accounting for stupidity.

Look at Roosevelt Roads on Google Earth. It could have been some form of housing, etc., but the Navy just abandoned it and let it go to hell.
 

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I'm not really following your point. I understand the Vieques gunnery range issue. Like so many issues in PR, they wanted it gone (for good reason) and now aren't happy that it's gone (in a way), because it didn't happen the way they wanted.

What I meant about military value was it's original purpose to protect foreign invasion from the south by sea. The San Juan fort was used for observation right up to WWII, but it's been unnecessary since and probably won't ever be again. Perhaps the gunnery range was a misguided attempt to have some remaining military value to justify the extraordinary net loss on federal dollars going to the island (zero return of income tax receipts).

San Juan was originally the central trading port for the entire region, dating back to the 15th century, I believe. That remained the case for centuries. That's long gone too.

The island needs to be reinvented, as it's unsustainable on its own. Not long ago, they attempted to be a foreign corporate tax haven, by attracting US companies that would not need to pay the same federal taxes. Local corruption and lack of workforce screwed that up. PR citizens are fleeing the island in droves, which began long before the hurricanes. Before one envisions that being unskilled labor, it's not (entirely). The island is losing its doctors, engineers, lawyers, teachers, etc. It's in a death spiral.

Tourism could be a US paradise, if they could get their act together.
 

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Got pulled off subject. A lot of history there, including bombing the crap out of Culebra until the 1950's while people lived there. PR can't do much of anything without the assistance of the U.S. That's how 'protectorates' work. For example, the BVI has its own corruption issues under British rule. Actions from Stateside put giant holes in the PR economy for the benefit of outside interests. The thriving pharmaceutical industry evaporated into someone else's pocket. The military economy was removed to teach a lesson. And so on. I agree with a lot of what you say, but we're devolving into politics here.
 

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V, I’m very interested in your take. I truly believe Puerto Rico is a diamond in the rough. It could be the prime Caribbean tourist destination. It has room for all levels of tourism, unlike any other island, sans Cuba. It’s fundamentally corruption that is holding it back from its next evolution. The pharmas were the tax haven play. It was both corruption and lack of workforce that killed it. Maybe an OT thread is warranted, but I hate that sewer generally.

Yes, PR is a protectorate, but that’s not an entitlement. It’s just a fact. A fact whose original purpose is no longer needed. What a protectorate is entitled to and what they owe to get it is the center of the issue.

I took four years of Spanish as a kid. My recent involvement down there has me trying to brush up. I’m way behind.
 
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Mas Medalla usually suffices. Oh, I see you have a J54DS. Drove one that was spanky new back over 10 years ago. Even raced it (DON'T do it) some. Then sold it to some guy in MI-6 or something like that. I facilitated the sale, I should say. Haven't seen it since. Had a lot of fun on that boat between Culebra and SXM. A friend just grabbed a J49DS for $50K that needs a new mast and had a stand sticking through the nav (port side nav) at knee level that missed everything. Easy fix. Nice boat, galley stove was never used, less than 200hrs on the engine. I don't think anyone had ever slept on it. Except he'll pay more for the factory spar and mainsail than he did for the boat. I watched someone tune the rig on the 54DS. Not an easy task to get it just right.
 

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I've been going to and working in and around PR since 1979.
The place has always had the same problems and lack of unity. There are those who want independence, those who want statehood and those who want the status quo to remain. I think it really depends on what each individual thinks would be best for themselves, which is the problem, of course.
I suggest we give them independence and let them, like most of the Caribbean Islands, find their own way to success or failure. I can't see the plus of the US supporting them if they can't come together as a community and move toward a self-sustaining entity.
 

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The problem with these "protectorates" is colonialism and "we know what's best for you." Same thing with many of the British colonies. The corruption was learnt from the guidance of Stateside politicians. They just don't hide it as well in the Caribbean. There's a book called "Rape of the American Virgins," now out of print, circa 1972. Nothing has changed much, but it's a bit of an eye opener (albeit somewhat dry). Thing is, many, many Americans, including some at the top, are clueless, calling Puerto Rico a "country" and the governor of the USVI "the president of the Virgin Islands." My problem with "independence," is that they have not been paying anything but FICA taxes into the U.S. system (medicare, SS) for decades, and if they became a "State" in some way, shape or fashion, the income taxes would necessarily immediately double or more because they'd be paying into the U.S. coffers just like the citizens of every State. In the USVI, income taxes are paid to the IRB, SS, Medicare is paid to the IRS stateside. How do you account for all the previous payments to the IRS if "independence" occurs? Just say "tough, you're done"? No social security, no medicare? Pay all the money back since the inception of the systems? They're subject to every other law, were subject to the military draft, but don't have the right to vote for the President, nor the right to indictment by a Grand Jury if charged with a felony crime. They are "citizens of the U.S." and obtain full Constitutional Rights when they move Stateside, but are considered "non-citizens, not resident in the United States" by the Federal Government. That's colonialism. Change your address and domicile to Stateside, you get more rights. You try and figure it out. I don't see any easy answers.
 

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PR was “purchased” via a treaty at the end of the Spanish American war. The reason for the purchase no longer exists. The US is not a sun-never-set style empire. It has strategically established protectorates, for defense and trade. Both were key in the 1800s. Neither are the case with PR anymore. Given history, PR has the rare ability to become a co-equal State, but short of that history, it could not even if it wanted to. To over simplify the sum of the US govt position, no one really cares if they do or they don’t, it just can’t stay half pregnant. Join in or take it on their own. PR is not entitled to their own rules anymore, because they have little value to provide in return.

I’d like to see them fully join in and I think it has the potential to be a jewel, for everyone. A tourism paradise. The only real block is the islands political parties. The rest could be sorted out.
 

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Heck, we only had a telephone tax surcharge to pay for that war until what was it, the 1990's? Honest, the sun almost never set on that one either, till someone pointed out that a hundred years ought to be enough. But unlike Haiti, Cuba, or the original 13 colonies, or so many other places, Puerto Rico seems content to exist in limbo. I suppose that beats dictatorship or a banana republic.
 
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