" off shore" sale

[dirtydon]

what are the benefits to an off shore sale? can the boat be brought to the states? sales tax,when does it need to be paid if it is an off shore sale?boat i'm looking at is in mexico. thanks for your time and knowledge,dirtydon

[Gudgeon]

Different states wll have different requirements for the time the boat has to stay out of the state. I did ours thru an attorney who does alot this work. Recieved my tax clearance fro Ca very quickly after filing. PM me if you would like his information he is based in San Diego

[Faith of Holland]

When I bought Faith, in 2002, she was Australian, but shipped here because the dollar was trading better against the Aussie at that time, and the market was better here. She had previously been imported, which needs only happen once, but I confirmed that the duty had been paid. If it's a foreign vessel, not made in the USA, it might be subject to customs duty, in addition to any taxes. Wouldn't hurt to check it out.
Gregg
Sailing Faith: Home Page

[kevingy]

There aren't necessarily any benefits to an offshore sale. As each boat is unique, each boat purchase is unique. The only thing that is for certain is that the purchased boat can be brought back into the US.

Sales tax, as with anything governmental, is a bureaucratic mess. It varies from state to state, with each state having its own laws and loopholes. You will need to consult the tax code for the state you live in. You may be able to delay paying sales tax indefinitely, or you may have as little time as a week. For example, Rhode Island and Missouri do not charge any sales tax at all if the value of the boat (i.e., megayacht) is above a certain amount. From what I've read, in Washington, if you never bring the boat back into the US, you never have to pay sales tax. Of course, I am not a tax expert, so please do your own research for your specific state.

Chances are, you're going to have to pay taxes eventually. You might as well pay them now, as tax rates will only increase, especially if you're in California and the fiscal mess therein.

[Rhosyn Mor]

As I understand it, If you take the boat back to the states, with the intention of keeping it there, at some point you will have to pay tax, most states have a short grace period. If you federally document the boat and it never arrives in the states there is no tax to pay.
If I were you I would just call your local vessel registration office and ask them.

[Abaco]

State sales tax is paid in the State you register the boat at the time you register it. Usually a bill of sale documenting the price you paid is used to calculate the tax.

[kevingy]

Originally Posted by Abaco

Usually a bill of sale documenting the price you paid is used to calculate the tax.

The key word here is "usually". In have registered boats in Tennessee and Florida. As I recall, both had an NADA book behind the counter and access to the NADA web site. If the NADA value of the boat is more than the price on the bill of sale, the clerk may charge you tax based on the NADA value. It happened to me in Tennessee.

The intention here is to keep sellers from giving the buyer a bill of sale with a lower dollar amount in order to pay less tax and therefore make the boat appear more attractive. If you've just honestly found a great deal, you may be out of luck.

[Pblais]

what are the benefits to an off shore sale?

I can't see how it changes anything. It all comes down to where the boat lands and remains for a period of time. For the US the offshore customs duty may or may not apply but after that it has no effect. Just because there was no transaction in the jurisdiction the issue of sales tax becomes use tax. The rules for that don't matter where you bought the boat. State rules vary a lot. Buying in one US state and moving to another would be the same as offshore then bringing into a state.

The offshore sale has greater costs to purchase due to travel expenses, surveying costs, and commissioning the boat so you can take it with you. Unless it is a great deal on an expensive boat the travel and distance hidden expenses add up quickly. I wouldn't fly half way around the world to buy a 1980's production boat that you could buy 50 miles from home. depending on the state and tax rules it may or may not pay to be in another state.