How much is your boat taxed?

[Macblaze]

A lot of posts over time have made reference to taxes people pay to buy/own/keep their boats. It always makes me scratch my head because I (we) don't really pay any taxes. So I thought I'd start a thread to compare and contrast the cost the gov't want to impose us to indulge.

Alberta, Canada:
5% GST (one-time sales tax) on initial purchase.
Pleasure craft licence: $0
Annual VHF radio registration: $37

C'est tout, that's all.

Other Canadian situations
To Register boats in Canada rather than license: $250 (one time)

I haven't looked really closely but I assume purchasing a boat is taxed with the prevailing PST in each province:
Provincial Sales Tax:

BC: 7%
Alberta: 0%
Saskatchewan:6%
Manitoba: 7%
Quebec: 9.975%
Nunavit & NWT: 0%

Harmonized Sales Tax (5% GST inc.)

New Brunswick: 15% (10% provincial)
NFLD & Lab: 15% (10% provincial)
Nova Scotia: 15% (10% provincial)
Prince Edward Island: 15% (10% provincial)
Ontario: 13% (8% provincial)

As far as I know (other than sales taxes on moorage etc.) there are no annual taxes/fees imposed on boat owners in Canada.

So what about the rest of the world?

[Dsanduril]

In the US every state is different. California, my nominal home, has a sales tax that is 7.25% of purchase price. The various counties and cities can add their own sales tax on top of that, usually comes out to a total of 9-10% as a one-time payment at the time of purchase or the time you bring the boat into California.

Then there's an annual personal property tax, nominally 1% of the value of the boat, although, again local stuff and fees generally brings that to about 1.25%. Annually.

Then there's registration fees for state registered (as opposed to USCG documented) vessels. That's a modest fee (by comparison) < $100 every two years.

[dougweibel]

In the US it is highly dependent upon the owners state of residence, the amount of time the boat is in various states and what strategies the owner may exercise. The previous poster's tax situation (total 9-10% initial and 1.25% annual) is in no way representative. Some others pay 0% and 0%, with just some incidental fees like USCG registration, FCC radio license, etc., all of which total up to probably less than $100 per year and are independent of the boat value.

[Macblaze]

Originally Posted by dougweibel

In the US it is highly dependent upon the owners state of residence, the amount of time the boat is in various states and what strategies the owner may exercise. The previous poster's tax situation (total 9-10% initial and 1.25% annual) is in no way representative. Some others pay 0% and 0%, with just some incidental fees like USCG registration, FCC radio license, etc., all of which total up to probably less than $100 per year and are independent of the boat value.

That's sort of what I had gathered from comments here and there. But I was wondering what the actual figures were — state to state, country to country

[goboatingnow]

Vat on purchase price
Radio license one off €100 life time applicability ( not mandatory )
Zero license requirement
No registration requirement
That’s it.

[Orion Jim]

Connecticut isn’t known as the “tax you to death state” for nothing....
The sales tax is 2.99% (it used to be 6.35% so no one purchased expensive boats in the state since a neighboring state had no sales tax on boats) and the annual registration fee is detailed in this attachment https://portal.ct.gov/DMV/Watercraft...n-Fee-Schedule
The annual tax...fee...used to be different from one town to the next so the state took it over from the town tax assessors and distributes the loot equally among the towns according to population.

[Benz]

No tax on boats in Rhode Island; nominal state registration fee, $25/year for federal documentation.

[NaClyDog]

Originally Posted by Macblaze

A lot of posts over time have made reference to taxes people pay to buy/own/keep their boats. It always makes me scratch my head because I (we) don't really pay any taxes. So I thought I'd start a thread to compare and contrast the cost the gov't want to impose us to indulge.

Alberta, Canada:
5% GST (one-time sales tax) on initial purchase.
Pleasure craft licence: $0
Annual VHF radio registration: $37

C'est tout, that's all.

Other Canadian situations
To Register boats in Canada rather than license: $250 (one time)

I haven't looked really closely but I assume purchasing a boat is taxed with the prevailing PST in each province:
Provincial Sales Tax:

BC: 7%
Alberta: 0%
Saskatchewan:6%
Manitoba: 7%
Quebec: 9.975%
Nunavit & NWT: 0%

Harmonized Sales Tax (5% GST inc.)

New Brunswick: 15% (10% provincial)
NFLD & Lab: 15% (10% provincial)
Nova Scotia: 15% (10% provincial)
Prince Edward Island: 15% (10% provincial)
Ontario: 13% (8% provincial)

As far as I know (other than sales taxes on moorage etc.) there are no annual taxes/fees imposed on boat owners in Canada.

So what about the rest of the world?

Depending on the origin of your boat, you may be liable for duties and tariffs as well. All is payable when you enter the country with your vessel.

[Macblaze]

Originally Posted by Orion Jim

The annual tax...fee...used to be different from one town to the next ...

You know there are lot of things about the American system that can be argued as good or bad, but this little bit of idiocy is definitely a strike against

[Dsanduril]

Originally Posted by Orion Jim

...The annual tax...fee...used to be different from one town to the next so the state took it over from the town tax assessors and distributes the loot equally among the towns according to population.

Because MacBlaze commented, as another couple of USian examples, both of the Carolinas charge personal property taxes on boats based on a "millage rate." The millage rate depends on county, city, school district, fire protection district, and a host of other districts. Each district adds their rate to the total. If your property is in X county, Y school district, and Z fire protection district then your millage rate is $M, while if you are in X county, U school district, and W fire protection district it may be $R.

Here's an example for Abbeville County in SC:

Abbeville County Total .13570
County Operations .08870
County Library .00320
Piedmont Technical College .00230
County Office Building Bond .00050
County GOB Bond .00420
County Building Project Bond .00730
Solid Waste .00650
Fire .00810
Infrastructure .00150
County Reserve Fund .00260
G.O. Bond 17 .00570
County Reserve Fund 2019 .00510

School District Millage Rate
District Total: Abbeville .21610
Operating and Upgrading .19310
School Bond 2019 .02300
District Total: Greenwood 51 .24150
School Operations .18310
Countywide School .03900
School Bond .00980
Vocational Facility .00960

Municipal Millage Rate
Abbeville .10652
Calhoun Falls .14500
Calhoun Falls GOB 2016 .00450
Donalds .02000
Honea Path .12150
Ware Shoals .09600

source

To cap it all off, you have to calculate your assessed value which is some percentage of market value and depends on the type of property (residential, commercial, ....).

In the end it works out to somewhere between about 0.5% and 1% of value annually depending on which state/county/municipality in the Carolinas.

North Carolina also has a 3% sales tax when the vessel is purchased that is capped at $1500 (if your vessel is > $50k you don't owe any more sales/use tax). Don't know about sales tax in SC.

[SalingSue]

$0 for the purchase etc of the boat

Selective of where I do business, also I have a hard time paying for something that doesnt yield me any notable value.


Sadly I end up paying a good deal on fuel tax, income tax, misc "fees" tax and so on.

[Orion Jim]

Originally Posted by SalingSue

$0 for the purchase etc of the boat

Selective of where I do business, also I have a hard time paying for something that doesnt yield me any notable value.


Sadly I end up paying a good deal on fuel tax, income tax, misc "fees" tax and so on.

And.... where might this be?

[SalingSue]

Originally Posted by Orion Jim

And.... where might this be?

A state with no sales or use tax.

[jdmuys]

In the EU a boat must have paid the VAT before it can sail. The VAT is typically around 20% of its value.

In addition to that each country can add yearly taxes. In France, this is rather complex. For a yacht with a length of 15m or more, the annual taxe is 886€ plus a motor tax that depends on its power. The formula is available online, but for 50HP, you can expect to pay an additional 200€ give or take.

All the above is an oversimplification.

[chrisr]

in Oz you will pay 10% GST if purchase a new boat. zero if purchase a used boat

no annual tax or such but there is a state based registration fee. in our case (NSW) this is abt A$350 pa

some of you guys sure get screwed don't you ?

cheers,