Keeping a Boat in the USA

[kiwa]

I'm looking at purchasing a boat in USA with the intention of sailing it back to Australia.( Im an Australian citizen )
Because of current time restraints I will not be able to bring it back till next year.
My understanding is that as soon as I purchase it as a foreign national the US registration will have to be cancelled and I will register it as an Australian boat.
Question - Does anyone know how long I would be able to keep it in the USA after the registration change - ie at some stage will US officials tell me to remove the boat from USA or be liable for import duties etc.What is that time frame.
Your advise would be appreciated
Thanks

[boatman61]

To the best of my knowledge the boat (circa '05).. if built in the USA.. it can stay, leave, revisit and stay with no restrictions...
you however will be subject to standard immigration proceedure...

[s/v Moondancer]

As a foreign flagged boat you need a cruising certificate which is a yearly license to be in the US. After one year you then leave for 2 weeks return and get another one. We are UK flagged and have been in and out for the last 3 yrs. We have been gone for a while so will get a new 1 year certificate in 3 weeks time when we return.

However, that does not cover the State tax which is often a use tax, or a just being there tax, which is 6% in Florida and varies from State to State. That becomes due in Florida after, I think, 90 days.

If you are going to leave the boat it needs to be in a State that does not have a punitive sales tax.

[skipmac]

If the boat is currently registered or documented in the US then no import duties will be due, even with change of ownership.

Sales tax would be your biggest potential financial liability. FL and most states will charge a sales tax, usually around 6% of the sales value if the boat is sold in and remains in that state. FL has recently put a maximum cap on the sales tax of USD$18,000.00. There are a few states that do not tax boats. One on the east coast is Rhode Island.

In Florida if the boat is in a boat yard or marina for repairs the sales tax deadline of 90 days can be extended but then must be removed within 20 days of completion of repairs.

More details here.

http://dor.myflorida.com/dor/forms/2010/gt800006.pdf

[kiwa]

That sounds like pretty informed advise.
The 6%tax - is that 6% of boat value?.
And excuse my ignorance - what is a punitive tax??

[s/v Moondancer]

My last Florida boat cost me $3000 to register in Florida, 6% of the $50,000 I paid for the boat.

Skipmac's information appears accurate

[Pblais]

or a just being there tax

Some states are more or less. But yes, it is based on the purchase price unless you try and claim some low value and then it's based on the true value. Tax collectors know a little bit about boat prices. Virginia is a cheap state 5.5% OR $2000 max whichever you like. North Carolina is similarly cheap as well. If you purchase in Florida you need to prove you left the state before the time limit. Fuel receipts or some such paperwork will do. Not many states are more expensive than FL plus your insurance will be higher there too. North of North Carolina will save you on hurricane insurance. You need at least liability insurance to be some place extended. You can buy that locally or where ever you like.

The just being there tax (that describes it accurately) is about your boat not you or where you live or are a citizen. It's a boat in a place for beyond a period of time and taxes become due. You owe the tax if they catch you and you can try to prove otherwise but in the US taxes owed is a sure thing until you prove you don't owe them. At least in a murder trial they would have to prove you really did it but with taxes the claim that you owe is all that is required. FWIW, Florida and Maryland are bulldogs when it comes to looking for you for boat use taxes. I'm not aware of any US State that is more aggressive. Florida has no annual income tax so they need the money more. Maryland just likes to go after it as they seem to enjoy the exercise.

Delaware has no tax at all but keeping a boat in Delaware is it's own tax. It's a horrible place to sail in and close to nothing plus they get real winter. Marinia fees escalate as you go farther north beyond southern Virginia. So you need to add up taxes, insurance, and marina fees. It all factors into the the decsion to buy in the US.

Not leaving right away maybe the more prudent idea. It just takes a while to find all the things wrong and fix them. Getting familiar is best not done while crossing the Pacific.

[skipmac]

Paul's point about marina and other costs increasing as you go north should be carefully considered. I purchased my boat in NY and the cost for a short haul (pick the boat up in the hoist and hang for an hour for inspection while the yard crew was at lunch then drop it straight back into the water) was three times more expensive than hauling my boat and blocking in the yard in Florida. Plus it gets cold up there.

[hellosailor]

Kiwa, you should understand that the US is a "federal republic" of 50 sovereign states, not one nation at all for many purposes.

We have state motor vehicle and/or boat registration in each of the States, with varying requirements in each of them.

And we have federal Vessel Documentation, which is never referred to as "registration" here. The r-word is used only for matters of State registration, as a boat and/or motor vehicle. (In most states, a boat with an engine is simply considered a motor vehicle and treated the same as a car. Most but not all.)

So if the vessel has federal Documentation, that becomes void as soon as an alien acquires more than a 50% ownership of the vessel. But state registration applies to vessels kept within a state, without any concern for who owns them.

If your vessel is purchased, usually there will be state sales tax (or use tax) and sometimes personal property tax or other tax levied on the sale or ownership of the vessel. That may come due at the time of the sale, or it may not be due if the vessel is removed from the state within 30-90 days. The exact requirements and time periods WILL be different in every state.

The only way to be sure of what you will face, is to contact the authorities in the state the vessel is located in. (Although a broker usually will know the regulations, their opinion is of course not legally controlling.)

In some states, brokers are required to collect sales or use tax at the time of sale, but private sellers are not. In some, there will be no tax if you are foreign-flagging the boat (or registering it to another state) and you get it out of the first state in 90 days or less. Again...you'll need to check state laws. Most of the states will have a "Department of Motor Vehicles" "Tax Department" or boats or marine recreation, etc. department web site(s) with specific information. Those laws often change on January 1st, sometimes on other dates, so you need to make sure they are current, too.

We have not VAT tax or federal taxes for you to worry about though. That's between you and Oz, along with any necessary duties.