Buying a boat in MD and sales tax

[Badsanta]

Originally Posted by sailingunity

We were very concerned about this as well we when bought our boat in Maryland. We closed in August and moved to VA in October. However, it seems like enforcement is spotty, I wouldn't stress about it too much. When you buy the boat you'll sign a statement saying you plan to leave Maryland.

I hear Florida is the worst.

Oh they'll find you. They get a list on January 1.

[Badsanta]

Originally Posted by Chuck34

Mogulskibum,
The boat I'm looking at is Coast Guard documented and I will keep it documented. Unlike MD, VA does not require documented boats to be registered, it is optional. So, if I buy it, I will do the CG paperwork, and from what I've been reading, it will take 2-3 months to get my Certificate of Documentation.

Your still subject to local property tax. Depending on location could be zero but more than likely more

[gatorsailor]

Virginia has an annual property tax on the boat in addition to the sales tax. Over the long run, medium run, MD is much cheaper.

[Chuck34]

As badsanta mentioned, property tax depends on where you are. We have some counties in VA that charge nothing on boats and some that are very reasonable. Where I am, property tax will be way less than the extra 4% MD sales tax I would be paying.

[Kazamaran]

Wherever you moor the boat and hangout, pay the tax ! All states are reciprocal credits wherever you decide to move later. I cant imagine sailing around worrying about that stuff; sneaking around and worried about about state authorities capturing you and all the drama associated. Pay the tax! You oughta be worried about gas in the bar b que and sipping a few off the transom waving to those guys not putting some phoney story together about when and where you bought the boat. Just my opinion.

[Chuck34]

Originally Posted by Kazamaran

Wherever you moor the boat and hangout, pay the tax

Not trying to avoid the tax, just trying to keep it as low as legally possible.
Paying 2% to VA and local property tax in VA, will still be a lot less than the 6% MD wants.

[sailpower]

Originally Posted by derfy

Florida is more onerous than Maryland. They take around 7-8% Sales/Use Tax (6% plus local 1-2%) on a new boat purchased in Florida. There is a temporary exemption for out-of-state buyers, buying only from registered FL Brokers (not individuals). You can then have 90 or up to 180 days to escape Florida.

FL Sales/Use tax is 6% capped at 18k so all boats purchased for over 300k pay 18k.

There is a discretionary sales surtax levied by some counties (Not Broward) that is levied only on the first 5k of the purchase price.

A 100k boat purchased in a Miami-Dade County would pay 6% of 100k plus .5% of 5k for a total tax of $6,025 or 6.025% of the purchase price. Basically what you refer to as local tax is insignificant and total tax is never 7/8%.

http://floridarevenue.com/Forms_libr...t/gt800005.pdf

http://floridarevenue.com/Forms_libr...ssyear2017.pdf

[derfy]

Thanks for the clarification. I did not know about the 5K cap. I stand corrected.

[edguy3]

Note: when I purchased a boat in MD as an out of state resident, they notified my home state of NJ. NJ reached out a month or two later & insisted that I pay the NJ sales tax immediately even though I hadn't registered it in NJ yet. The tax was due the moment the vessel crossed the Jersey line. (IIRC, I was waiting for the CG documents and was allowed more time register.)

/ed

[hellosailor]

Chuck-
Your only SAFE bet, is to check the rules directly in both states, for vessel registration and for tax matters. Sales, excise, property, whatever.
Boat Registration
That's one of them. VA has another.
You might also try something on another angle: Go to a large boat dealer, a place that sells new and used boats. Go at midmorning or afternoon on a weekday, when things should be slow, and maybe bring some coffee and donuts and ask one of the brokers if they can clue you in on the details, tell them you're making a private purchase and wanted some information about taxes and stuff.
And then beware because most if not all states put NEW LAWS INTO EFFECT ON JANUARY 1ST. While you're checking, check for upcoming changes.

[ferrailleur]

Hi all,

don't have my boat yet..
what are the average cost of a yearly marina slip in the Chesapeake bay around Annapolis for a 37-40' sailboat (all utilities included)?
I'd also like to have a yearly haul out with the basic below waterline done by myself.
Again, I'm a quite well read newbie on that size boat. I'm an older gentleman with a great sailing experience in Europe 45 years ago!

Thanks

[Chuck34]

Most likely I will be buying thru a broker. Not concerned with VA, all I have to do there is pay the 2% sales tax and not have to worry about state registration. The boat will be CG Documented and VA does not require it to be registered.

Property tax....depends on the locality...reasonable to none at all.

[Badsanta]

But Virgina will give you a tax sticker for a documented boat if you ask for one. Which may come in handy when crusing in other states.

[Badsanta]

Some locations have no boat tax in Virginia. Colonial beach and Kilmarnock come to mind.

[Chuck34]

Originally Posted by Badsanta

But Virgina will give you a tax sticker for a documented boat if you ask for one. Which may come in handy when crusing in other states.

The only waters I ever cruise in is VA and MD and I'm 99% sure that will never change. That goes for almost all of my boating friends as well.