dinghy registration question

[rachelsavitt]

Hello , thesis my 1st post and hopefully not too stupid a question

My husband and I bought our 1st sailboat and it is currently in Texas, we live in California, we plan on sailing to Florida and caribbean for 6 months and then leaving boat for 6 months out of the water in maybe Grenada. Returning next season to sail again


Do we register/title the new Dinghy and motor in Texas? do we have to register /title at all ? can we pick anywhere? If do it in Texas we have to pay sales tax, but we did not buy it there, we don't really have a home base for the boat

i have researched but it is a little confusing

any help would be appreciated

[StuM]

Where is your boat registered? Some places require tenders to be registered separately, others do not, others do depending on motor size, how it is used, how it is marked etc, etc.

[sailjumanji]

If the dinghy has a motor, and its going to stay in Texas, then it has to be titled and registered in Texas. TWPD site says this has to be done with 20 working days of purchase.

https://tpwd.texas.gov/fishboat/boat..._registration/

If it was registered in another state, you can transfer title and registration and avoid the sales tax. (I think the law assumes that tax was paid in previous state.) Look at the Tax Affidavit section of PWD 143, and it lists the only ways to avoid paying sales tax.

https://tpwd.texas.gov/publications/...pplication.pdf

Best to call TPWD and ask them your questions. I live in Texas and have titled several boats as well as purchased a documented (not titled) boat from out of state and transferred it to Texas. (Even on that one, I had to pay sales tax.) We are currently considering buying a new boat ~$450k and sales tax on that one is going to be ugly. But I know of no way to get around it. Legally.

[sailjumanji]

Only way that I can see avoiding the title, registration and sales tax for the dinghy is to not use it in Texas. If TWPD sees the dinghy being used on the water without registration numbers and sticker, they will ticket you.

[InTheDish]

Where do you intend to have it housed in the U.S. when you finally do return?

In my case it's Wilmington, DE.

[Jammer]

Originally Posted by rachelsavitt

Hello , thesis my 1st post and hopefully not too stupid a question

Welcome

Do we register/title the new Dinghy and motor in Texas? do we have to register /title at all ? can we pick anywhere? If do it in Texas we have to pay sales tax, but we did not buy it there, we don't really have a home base for the boat

Typically the motor isn't registered. Just the dinghy.

The law is confusing because each state does its own thing and there is a presumption inherent in the law that you and your boat will have a domicile -- a "home base" as you call it, that you return to.

With a dinghy there isn't enough money at stake for it to matter much. When the dollar amounts paid for taxes and registration fees become large then it becomes more important to be careful to comply with the laws wherever you are, and be cognizant of the time limits. My advice would be to register it at the same location as the home port for the big boat, if that is convenient for you.

[sailjumanji]

Originally Posted by Jammer

Welcome

Typically the motor isn't registered. Just the dinghy.

The law is confusing because each state does its own thing and there is a presumption inherent in the law that you and your boat will have a domicile -- a "home base" as you call it, that you return to.

I guess there is "typical", and there is Texas. The motor is titled in Texas, so you have to apply for a title. Same for the dinghy, except it gets TX numbers to be displayed. Here is the rule:

Effective January 1, 1994, all motorboats and all outboard motors must be titled. Also sailboats 14 feet and over in length must be titled.
All motorized boats, regardless of length;
All sailboats 14 feet in length or longer or any sailboat with an auxiliary engine(s); and
All internal combustion (gasoline/diesel/propane powered) outboard motors must be titled.
Boat trailers are handled through your local County Tax office.

But I also agree with what you said. Fretting over a 6.25% sales tax bill on a dinghy and motor is not worth it. Unless you have no intentions of ever putting it into Texas waters. Because otherwise, a boat with no TX numbers displayed just screams to TPWD "PLEASE COME AND TICKET ME!"

Oh, and read the form that I linked to. There are penalties and interest due if waiting more than 20 business days to get this done.

Again, here are the Texas rules:

TPWD is required by law to collect tax for vessels/boats (65 feet or less in length*) and outboard motors purchased in Texas or first used in Texas on or after January 1, 2000. The tax rate is 6.25% of the sales price. Tax is assessed at the time of registration/title transfer and is due within 20 days from the date of sale or date brought to Texas. Applications filed later than 20 working days are subject to tax penalties and interest. A bill of sale or invoice is required for every transfer of ownership. Trailers are handled through your local County Tax office and the price of the trailer must be separated from the price of the boat and motor.

If you look at the form, you get credit for sales tax paid in another state.

If you purchased your sailboat in Texas, you paid sales tax on that, didn't you?

[rachelsavitt]

thanks for there responses, my husband registered it in Texas now we are waiting for the title for the motor ( we bought used in resale shop, owner has to bring it in), I guess from what I have read we have to register the motor as well