[Minnewaska]

Lot's of confusion above. Sales tax is paid upon sale and sometimes collected when you register. Use tax is the equivalent concept, but due upon "using" your property within the State. The concept is born from those that buy their property in another state and immediately remove it, thereby being exempt from sales tax in the state of purchase. The State you use your property withing still wants their vig.

Looks up California Sale/Use tax rules. Some states will provide a longer exemption for moving your property to your home state, if you keep the boat on the hard. I do not know CA rules.

However, forget about trying to beat the system by lying or deceiving. If you get caught (and the tax guys LOVE to catch rich boat owners), the penalties and interest will make you bleed. Do it correctly.

 

[Minnewaska]

Again, I don't know CA, but here you are required to provide an affidavit from the seller that you truly purchased below market. Therefore, the seller is also subject to fraud and highly unlikely to agree to pretend they weren't paid more.

 

[Minnewaska]

Overboard..... Great link. It clearly says that Use Tax is also due on documented vessels.

.........purchasers of aircraft or documented vessels from any person other than a person required to hold a seller's permit by reason of the number, scope, and character of the person's sales of documented vessels or of aircraft, as the case may be and not otherwise specifically exempt shall report and pay tax to the board.

http://www.boe.ca.gov/lawguides/business/current/btlg/vol1/sutr/1610.html

However, you are exempt under this circumstance......

However, a purchaser is not required to pay California use tax if the only use of the vehicle purchased from a private party in California is to remove it from the state and it will be used solely thereafter outside this state.

Ref: http://www.boe.ca.gov/pdf/pub52.pdf

The nuance is what they define as use. I would assume taking her for a sail is use. I still wonder if keeping her on the hard until removed from the state is considered use.

 

[Minnewaska]

.....It seems you can't even hire a delivery crew.

Having purchased several boats and aircraft in other states, I can say that is a very strict application of the out of state exemption. In most cases, you simply need to remove the property from the state. The only stress I've ever had is that some State's make a deadline very clear, while others use vague language like "immediately" remove and you don't really know if you complied.

It would seem that CA intends to aggressively collect their use tax. Buyer beware.