One More Question About Personal Property Tax

[capcook]

Please bear with me here... So if I understand marine taxiation... I have to have my boat registered in some state in order to get a US Coast Guard registration which I will need to prove ownership elsewhere in the world. Registering in a state makes the boat subject to that's state's PPT laws no? (not to mention registration fees) So if you are just crusing along the US coasts and not staying for for more than the required days for residency could you register your 40-50 CAT in say Arkansas if they had really low PPT rates and then all the other States would have to honor that ??? This PPT tax really has me bummed out...

signed depressed...

[Bash]

Most states do not require registration of USCG documented yachts.

[sailorboy1]

I live in NH and they only require state registration if the boat is operated in in-land waters. The boat is CG documented though.

[YOGAO]

Sorry for a low value post.

Personal Property Taxes are not collected in all states. Some states collect sales tax only, while others (like VA) have a limit on the amount of sales tax you pay, but then have a yearly PPT.

There has been lengthy discussion on this topic recently on CF, do a bit of a search.

You probably need to talk to a GA tax atty to get your "t's" dotted and your "i's" crossed.

Fair Winds,
Mike

[capcook]

Originally Posted by YOGAO

Sorry for a low value post.

Hope it was worth the cost


Ya, I need to find a CPA/Attorney who specializes in marine law I guess to really understand the issues as most CPAs would not have a clue about this issue (I know because I am a CPA)...

OK... I am off to google Coast Gaurd Registration requirements....


Cheers

[Hud3]

Personal property taxes are a strictly local issue. You really need to contact the taxing authority and find out what the requirements are. You don't need to pay a CPA or lawyer to do it.

As a former resident of Virginia, I paid property taxes on my boat to the county in which I resided. During the years that the boat was outside the county's boundaries for at least 183 days, it was exempt and I paid no property taxes on it. I did have to provide proof to the county tax official that the boat was elsewhere. That was easy to do using receipts and even copies of pages from the ship's log. Other states/counties may have different requirements, which is why you need to get very specific in your inquiries.

If you document your boat with the Coast Guard, you cannot have a title issued by a state. The CG doesn't care if your boat is registered in a state. They certainly do not require you to register it in order to obtain USCG documentation. The registration requirement varies state by state. In Virginia, I was not required by the state to have a state registration for my boat, since it was documented. I was required to register the dinghy. Other states require registration if the boat is documented, but do not require numbers to be displayed on the boat. Again, requirements vary by state, so you need to check with the authorities.

[osirissail]

- - Just to amplify a few of the excellent points by HUD3 - If your boat is large enough to qualify for USCG Documentation - all you need is a bill of sale (and past documentation information if the vessel was previously USCG documented) and then fill out the USCG forms available from their internet website. That makes you "ready" for international cruising.
- - Individual States inside the USA have one or two variations of their "Registration of Vessels" procedures. Without USCG Documentation you "Register" "the boat with the State normally the same as you would Register an automobile and you get a State Number (e.g. "FL3920C") that is affixed to your bow and you receive a "Title" for the boat from the State.
- - If you are USCG Documented there is a variation of State "Registration" where you do not get a "Title" but you do get a little "Decal" that must be affixed to the port side of your boat so it is visible. Your ownership proof is the USCG Documentation and the State will use that number to reference your vessel in their system.
- - If you never use the vessel in US Waters technically you do not need either variation of State registration. However, if you do use the US vessel in US waters for -any- length of time and are boarded/inspected by local marine authorities they will want to see proof that you have "registered" or are registering in some State and it should be where your drivers license or other identification show you are "living." I seriously doubt there is a State that will waive a US vessel in US waters without some kind of proof of a State registration (that means some government got some money from you). It is easiest to do it during the purchasing process. In Florida the "registration" fee for my 50' vessel 10 years ago was US$60/year; last year it went up to US$88/year; and (oh, my god) this year it jumped to US$270/year - just looked, ouch! Maybe I will start shopping around for a better State myself. But if you do that - see the other threads - it involves shifting all your various "links" (e.g., drivers licenses, banking address; tax address; etc.) to the new State. That just may not be cost-effective when everything is added up.

[capcook]

Originally Posted by osirissail

- - if you do use the US vessel in US waters for -any- length of time and are boarded/inspected by local marine authorities they will want to see proof that you have "registered" or are registering in some State and it should be where your drivers license ..... In Florida the "registration" fee for my 50' vessel 10 years ago was US$60/year; last year it went up to US$88/year; and (oh, my god) this year it jumped to US$270/year - .

Thanks Hud & Osirissail...

I lived in FL for about 15yrs and had a 30' pontoon boat... I know those "local Marine" guys just "live" to find someone with an expired sticker... I also read up on USCG registration and it giving you exemption from having the "numbers" on your boat, but I was wondering about that sticker... thanks for clearing that up.... Now I have to ask.... does registering in FL and getting that sticker also make you subject to FL's PPT tax which is quite high...at least on Airplanes I know.... Thanks for your help with this...

[slomotion]

Florida has no personal property tax on recreational boats.

[capcook]

Originally Posted by slomotion

Florida has no personal property tax on recreational boats.

Aha... you are so right... I just looked this up and this is what the Florida Attorney General had to say about in Oct 2004:

"Every boat registered as is required by the Florida Vessel Registration and Safety Law is exempt from any personal property tax, but is subject to a vessel registration certificate fee pursuant to section 328.68, Florida Statutes.[8]"

Well, that settles it.. I am moving back to Florida when I retire... no state income taxes and no PPT on the boat... I will gladly pay the $300 bucks on the registration... hum.. I wonder if that registration is value based... I best check that out..

Thanks

[YOGAO]

Florida charges by size. Of course, another thing to consider is insurance since it is generally more expensive and there are fewer companies underwriting boats in Florida.

Fair Winds,
Mike

[capcook]

One thing is for sure... I can not leave the boat in GA or CA for more than the alloted period of time e.g. 184 days in GA.. not sure what the time limit is for CA but need to find out... In GA you will owe about $20/1000 of appraised value and the value the boat at 40% of FMV... so on a $500k CAT that would be about $4k/yr... ARGH... Headed to FLA...


<FONT color=#000080><FONT face=Arial> Georgia Code 48-5-16 states that if a boat is “Functionally located” in a county in this state for 184 days or more during the immediately preceding calendar year, then it is taxable in that county. With that being said, if it is taxable in any county in

[Cheechako]

I bought a boat in Annapolis, Documented it, wandered my way to Florida staying up to 3 months in any given state along the way. Sailed the Carribean for 3 years, returned and sold the boat. Never paid tax anywhere. More recently my state wouldnt let me pay tax if the boat wasnt in the state...

[Galdarol]

Originally Posted by Cheechako

I bought a boat in Annapolis, Documented it, wandered my way to Florida staying up to 3 months in any given state along the way. Sailed the Carribean for 3 years, returned and sold the boat. Never paid tax anywhere. More recently my state wouldnt let me pay tax if the boat wasnt in the state...

Was that state, Washington, as listed in your profile?

[Benz]

Regarding the question in the OP: The coast guard does not require any state registration to document, but it requires an address. That address will be in some US state or territory. That state has access to the USCG database, and when it sees that a vessel was documented with an address in that state, it may come barking at the boat owner for taxes, depending on local laws. Find a state that has a tax structure you can handle and establish a PO box there. Make sure it is not California.
Ben