SailNet Community banner

1 - 13 of 13 Posts

·
Registered
Joined
·
618 Posts
Discussion Starter #1 (Edited)
I am budgeting for a 10% sales tax / registration / licensing fee depending on where I purchase. I understand that I may not be charged if the state of purchase has an exclusion, but surely some state along the way will make me ante up. I want to make sure I understand the situation going in . . .

My question: once you've paid one state a sales tax or licensing fee, it is credited by al other states, right? In other words, the worst that could happen is that I buy in state X which charges 8% transfer tax on boats and I wind-up spending substantial time in state Y which charges 10% one-time licensing fee or use tax -- I would only owe state Y 2%, right?

TIA
 

·
Registered
Joined
·
5,607 Posts
Yes, IF you can prove it...keep your receipts.

I think the highest tax is 8%, most are 5% to 6%. Some are 0%
 

·
Registered
Joined
·
93 Posts
There's a reason so many boats are kept in Rhode Island. No sales, use or property tax on boats. Very small registration fees.

We winter our boat in Maine, and the state sent us a letter last year asking us to pay use tax or show why we should not (Maine has an exemption for boats which are just there for storage and work). We used logs and credit card records to show that the boat was used in Maine waters for under 2 weeks in our first year of ownership, and the problem went away.

Expect your home state to be fairly aggressive about this, states are hurting for taxes and rich yachties are a mighty tempting target.
 

·
Registered
Joined
·
618 Posts
Discussion Starter #5
Cam

Blowin...yes...you would only owe the 2% difference in that case BUT you are aware that MANY states also have an ANNUAL personal property tax which can be quite expensive as well right?
No, Cam I didn't know that. Obviously, I know about income taxes and real estate taxes, but I knew nothing of "personal property tax" . . .. I suppose I need to find a schedule of state by state Boat transfer tax, Use taxes, One time licensing fees and now personal property tax! It seems like (and all the responses seem to confirm that) all but the personal property would be credited in other states.

Thanks for the heads-up.
 

·
moderate?
Joined
·
1,000 Posts
Yeah...good list but note that the pers.prop. tax is generally a county imposed tax and can vary GREATLY from county to county within a state. Back a few years ago I was paying $1k per year at my VA slip...and 50 miles away in Norfolk the tax was a dollar. (changed now but you get the point.) I also believe that some staes may have an annual USE tax instead of personal property. I'm pretty sure MD. collects this but maybe a local there can confirm.
Point is...shop around for marinas where you may stay a while and ask the annual tax question before you sign on the dotted line. What looks to be a cheap place to stay can turn out differently!
 

·
Wind and pie move my boat.
Joined
·
428 Posts
Interesting info in a country founded from a tax revolt & now seems to have assimalated the soul of Silas Marner . The longer I live the more I regard my citizenship as membership in a club I have no recollection of joining that has very highs dues & few , yes I said few , benefits . Please spare me invitations to leave . This is my country....I just disapprove of what's become of it .
 

·
Registered
Joined
·
673 Posts
Interesting info in a country founded from a tax revolt & now seems to have assimalated the soul of Silas Marner . The longer I live the more I regard my citizenship as membership in a club I have no recollection of joining that has very highs dues & few , yes I said few , benefits . Please spare me invitations to leave . This is my country....I just disapprove of what's become of it .

DON'T EVEN GET ME STARTED. :mad: We as Americans have given up so many of our "rights" and it isn't funny. If the Founding Father's were alive I have no doubt they would be apalled at the legalese and semantics that have been used to justify governmental actions, esp. the past 8-10 years.:mad: :(
 

·
Aeolus II
Joined
·
670 Posts
I'm pretty sure MD. collects this but maybe a local there can confirm.
My understanding here in Maryland is that IF you keep you boat in MD or use MD waters more than 90 days in a calendar year you are REQUIRED to pay the state excise tax (5%), plus registration fees every 2 years. This applies to used boats, documented boats and boats registered in other states but used in MD.
Check:
Boating in Maryland: Boat Registration
 

·
Registered
Joined
·
203 Posts
Just to be clear on the previous post, the 5% tax is a one time thing. Maryland also gives you credit for any tax paid to another state. For example if you paid 6% to register in NJ and then moved the boat to MD, you would owe no additional tax.

The registration fee is every two years. For a documented boat it is $10. I think Maryland is a boater friendly state.
 

·
Registered
Joined
·
2,283 Posts
Blowin...yes...you would only owe the 2% difference in that case BUT you are aware that MANY states also have an ANNUAL personal property tax which can be quite expensive as well right?
Its even more confusing than that since in many states personal property tax is assessed by the county where the property is located, so the tax you pay could vary widely even within a State.

Here in VA, I pay PP on my boat to Middlesex county, even though I live in Loudoun County. The tax would be much higher if the boat was in Loudoun County both because they assign a higher value to the boat, and have a higer tax rate. This could be because Loudoun does not have bay waterfront so the boats tend to be less expensive trailerable boats.
 

·
Registered
Joined
·
1 Posts
Personal Property tax in Norfolk

Does anyone know how much the personal property tax in in Norfolk or if there is any?

Boat value $120k
 
1 - 13 of 13 Posts
Top