Florida boat registration in Maryland

[Peterbreit]

When I bought my boat in 2008 in Maryland, I had to register it in MD because the Chesapeake is my sailing region. And of course, I had to pay a steep MD sales tax. Never mind my boat was CG registered as required by my bank.

Now my marina neighbors bought their boat in Florida and brought it finally to Maryland last Spring. They will sail it here for about 6 months then back to Florida for the winter months. The boat is also CG registered. They plan to get a MD registration tomorrow.

The question is: Do they have to have a Maryland registration number? Do they have to pay the full sales tax or less for a few years depreciation??

Thanks in advance

[HeywoodJ]

Why not go straight to the horse's mouth? https://dnr.maryland.gov/boating/pag...istration.aspx

If your vessel was purchased elsewhere or previously registered in another jurisdiction, is now in Maryland waters, and will use Maryland waters more than any other single jurisdiction during the calendar year, you are liable for vessel excise tax and must register the vessel within 30 days of entering Maryland waters.

If your vessel is duly registered in another jurisdiction but remains in Maryland waters more than 90 days in a calendar year, you may be liable for vessel excise tax unless you can prove principal use in another jurisdiction.

Emphasis from the original. Your neighbors will have to determine state of principal use. Maryland is pretty generous in that regard, they say:

What is "principal use?" 8-701 of the State Boat Act
“State of principal use” means the jurisdiction on whose waters a vessel is used or to be used most during a calendar year, which is the period from January 1 through December 31.

“Use” means to operate, navigate, or employ a vessel. A vessel is in use whenever it is upon the water, whether it is moving, anchored, or tied up to any manner of dock or buoy. A vessel is also in use if it is kept in any structure in readiness for use.

[redneckrob]

I would add that you pay tax on the current value of the boat. Boats normally depreciate over time, but in the crazy market of the past few years maybe not.

[leecea]

Do they have to have a Maryland registration number?

No, they'll get an MD sticker but not an MD registration number.

When used principally in Maryland, documented vessels must display a documented use decal.

[mvmojo]

Maryland is aggressive in collecting their "excise" tax and they hire contractors (bounty hunters) to walk the docks in the winter looking for boats w/out Maryland stickers or MD registration numbers. Their law states that is your principal place of use of the boat is in Maryland waters, you owe their tax. If you paid tax elsewhere, you may get a credit depending on what state you paid - some have reciprocity, some not. By principal place of use they mean where the boat is used the most, regardless of how much time you spent in Maryland. If you cruise Maryland waters for 4 months of the spring/summer and then cruise the ICW and Bahamas w/out staying more than 4 months in any other state, Maryland considers your principal place of use to be Maryland even though you spent less than 50% of your time in Maryland waters. And, if they come after you for the tax, the burden of proof is on you to demonstrate that you used the boat more in some other state than you did in Maryland (marina receipts are generally acceptable).

FWIW, if you're cruising the Chesapeake Bay, Virginia is more tax friendly and boat taxes are different on a county by county basis with some counties not charging any tax at all...

[Peterbreit]

Thank you everybody who replied. They got the boat registered in MD. and since they paid sales tax in Florida at the purchase no tax was due. $10.00 for a MD sticker was all they owned.

[redneckrob]

Originally Posted by mvmojo

Maryland is aggressive in collecting their "excise" tax and they hire contractors (bounty hunters) to walk the docks in the winter looking for boats w/out Maryland stickers or MD registration numbers. Their law states that is your principal place of use of the boat is in Maryland waters, you owe their tax. If you paid tax elsewhere, you may get a credit depending on what state you paid - some have reciprocity, some not. By principal place of use they mean where the boat is used the most, regardless of how much time you spent in Maryland. If you cruise Maryland waters for 4 months of the spring/summer and then cruise the ICW and Bahamas w/out staying more than 4 months in any other state, Maryland considers your principal place of use to be Maryland even though you spent less than 50% of your time in Maryland waters. And, if they come after you for the tax, the burden of proof is on you to demonstrate that you used the boat more in some other state than you did in Maryland (marina receipts are generally acceptable).

FWIW, if you're cruising the Chesapeake Bay, Virginia is more tax friendly and boat taxes are different on a county by county basis with some counties not charging any tax at all...

Having lived in both MD and VA I want to correct one piece of information. Everyone in VA pays the 2% tax regardless of county https://www.tax.virginia.gov/aircraf...ensatory%20use

Some counties impose a completely different kind of tax you pay every year based on personal property value. This is on top of the 2% sales tax and is really an entirely different kind of tax.

[jkleins]

Originally Posted by redneckrob

Having lived in both MD and VA I want to correct one piece of information. Everyone in VA pays the 2% tax regardless of county https://www.tax.virginia.gov/aircraf...ensatory%20use



Some counties impose a completely different kind of tax you pay every year based on personal property value. This is on top of the 2% sales tax and is really an entirely different kind of tax.

According to your link and my personal experience several years ago this does not apply to documented boats purchased in another state. Just titled boats and in state purchases.