[pcmm]

Hello,

I'm looking to purchase a boat in the states (I'm canadian) and looking for any information on resources that can help me understand the process of purchasing a boat in the US, Maryland to be exact. Its likely to be a private sale so I'm looking for advice on the things to look out for. aside from making sure the owner has title (no leins, etc.) and Use tax. what else do I have to think of? I understand Use tax is an annual tax? seems odd that after payins sales tax you have to pay an annual "tax" just because you own the boat. How do I do a search for any outstanding leins against the boat? where do I do this? The boats I'm looking at are all project boats. Should I enlist a lawyer for this? if so what is the typical fees for doing something like this?

thanks!

 

[overbored]

if it is a project boat the try to keep it a cash deal. use tax is not an annual tax. use tax is like sales tax paid once on used boats to the state that it is registered in. not all states charge use tax.

 

[travlin-easy]

We don't have a use tax in Maryland. Essentially, if it's a project boat you are looking for, you pays yer money and takes yer chances. At least that's the case unless you have the boat surveyed, which I would strongly suggest. It's really not that expensive and most of the surveyors I've come across have been very professional. As for a lawyer - absolutely NOT! You really don't need a lawyer to buy a boat, or for most other things from my experience.

Now, what kind of boat are you looking for. Be specific and maybe we can render you some assistance.

Good luck,

Gary

 

[pcmm]

Gary,

the boat I am looking to potentially purchase is a Morgan Out Island 41 in Tracy's Landing it looks like a bit of a project. but I want to make sure that there are no outstanding legal issues with the boat before I attempt to purchase.

 

[jsaronson]

if it is documented with the Coast Guard you need to check with them to see if there are liens, If registered with the state, you check with the state.

 

[travlin-easy]

Ditto!

 

[RichH]

Easiest way to do this is through a boat dealer/broker who is experienced with transfers to international owners. Your contract with such a dealer/broker would be for handling of the transfer only, including guidance appropriate for applicable Maryland Tax statutes, etc. Usually a small transfer fee is required. Local banks can also effect such transfers - small fee again; but, require you to have correct oversight and knowledge of the transfer procedures .... especially for international transfers. Id recommend a dealer or broker.

This procedure should include the amount of time that the boat can remain in Maryland before you have to pay additional MD. fees, etc. ... they can advise/handle the tax, etc. procedures if you delay in the removal of the vessel that is 'within the borders' of Maryland beyond the 'grace period' of 90 days.

For your edification, start here for the preliminary info: Maryland Boating Information - Government Affairs - BoatUS

Off the top of my head, example for such dealers:
RogueWave Yacht Sales - Annapolis, Maryland Blue Water Sailing Boats and Yachts for Sale - Valiant Yacht Dealer
New, Used & Brokerage Sailboats, Powerboats for Sale Annapolis, MD & Deltaville, VA
....... When contacting, state your case and ask for estimate of charges, etc. for them to handle the 'complete' transfer. Do include your estimate of how long that the boat will remain IN Maryland after formal transfer.

Good luck.

 

[sailingfool]

We don't have a use tax in Maryland.

FWIW Maryland seems to have some odd terminology with their "excise" tax, which seems to actually be the same tax that many states may call a sales/use tax:
"5% VESSEL EXCISE TAX imposed by 8-710.3(a) of the State Boat Act on the purchase price or fair market value of all vessels used principally in Maryland. Excise tax must be paid within 30 days of Maryland tax liability to avoid assessment of penalty and interest."

A sales/use tax being a one-time payment based on the purchase price and due at or shortly after purchase... for example, Massachusetts has a boat sales/use tax that is so defined, paid to the State, plus its own "excise " tax, that tax being an annual fee paid to the local municipality based on a depreciated value of the boat.

 

[rikhall]

We are Canadian, we bought our boat in Edgewater MD and sailed her home.

Everyone we dealt with was wonderful.

If we can help with anything - send me a message.

Cheers

Rik

 

[travlin-easy]

Sailingfool, that excise tax is a one-time tax in Maryland, similar to a sales tax in other states. Of course, like all other states, they also have a license fee, or registration fee that is annual, about $12 a year. And, for that, we get absolutely nothing worth writing home about.

There are places in the world that impose a use tax, one that is an annual fee that is ridiculous to say the very least, on all your possessions, including your boat. In some locations, that is called a personal property tax. In general, taxes, and the way they are squandered by our politicians, just tend to piss me off. But, maybe that's because I'm old and cantankerous and continue to work very damned hard for everything I own.

All the best,

Gary

 

[svHyLyte]

We purchased our current yacht in Annapolis in January 2002. At that time we signed a form certifying that we were from Florida and removing the yacht from the state forth-with (we did so within 30 days) and we were not charged any tax by the State for the title transfer. We did, however, pay a tax when we registered the yacht in Florida as she had not previously been registered in our name elsewhere. Fortunately, the Florida tax was quite a bit less than what we would have paid in Annapolis.

FWIW...

 

[pcmm]

We are Canadian, we bought our boat in Edgewater MD and sailed her home.

Everyone we dealt with was wonderful.

If we can help with anything - send me a message.

Cheers

Rik

Rik, was your purchase through a broker? what was the process? I'm looking at a private sale and want to get all the right pieces in place. I know that I should do some digging to verify title and any outstanding leins. I know that there is an excise (sales) tax of 5% (which I'll take over the 13% i'd have to pay in Ontario). Is there anything else I need to watch out for?

thanks
Pierre