Registration of a sailboat in USVI

[Direstraits]

I would like to register a used & USCG documented boat I am about to buy in the USVI. I am wondering if there are tax implications (TX requires 6% in sale tax).

The boat will be spending its time outside of TX and in the Islands. We will not have a shore base - we will sell our house(well there will be a storage shed with some stuff in it). So I do not see any reason to pay TX a great deal of money.

So how does one register a boat in USVI or is there another way I do not know about?

Does the USVI want sales tax?

There is also the issue of title - I do not think USVI offers titles.

Thanks for your wisdom

Dennis

[Island Time O25]

From what I understand, and others will correct me if I'm wrong, you cant have both - a USCG cert of title and a state title. It's only either. You can have the boat registered with a state authority while it's documented with USCG but that's mostly for local excise/sales/other tax purposes and residency issues.

Technically (Constitutionally speaking) the states should not have any tax authority over a Federally documented vessel. But over time that's went the way of many other Constitutional provisions where expediency trumped constitutionality.

[wholybee]

There are different types of taxes that are often used interchangeably, but they are not the same, or interchangeable. Different states impose different taxes. Sales tax, use tax, and property tax. So you need to check with the state (and local county) to know what the costs are.

What is important though, is that these taxes are based on where the boat physically is, not the home port listed on the USCG document. The home port can be any city in the US. You don't have to live there, visit there, and it doesn't even need to have access to navigable water. It is simply a mark of vanity. A home port in the USVI is not different than a home port anywhere else in the US. The boat is flagged US, and that is all that matters.

If you document the boat with USCG, you do not usually need to title the boat in a state. However, some states will still charge a fee, and can require a sticker to show fees paid, but cannot require numbers be displayed.

Many states will not issue a title or charge fees for a USCG documented boats. Even California does not title or charge fees for a USCG boat. However, If your boat is in California on January 1st, then whatever county it is in will assess property taxes the following tax year. Never enter California, never pay property tax. But as I said, it varies by locality, not just state, but at the county level. And while California's rule is "where was the boat January 1st?" other states have different rules, like "Has the boat been here for x months?"

For *most* purposes, the USCG document is equivalent to a title. If there is ever a lien on the boat, of if there is a question of ownership in court, the USCG document is not sufficient. You probably want legal help in that case, but the USCG can also provide an abstract of title which will help document the legal ownership. Few boat owners ever need it.

[aquavitae]

I have owned four sailboats in the USVI. My current boat has both USCG documentation and is also registered in the USVI. The previous owner had USCG documentation so I had it switched to my name and have kept it since, mainly for resale purposes and for going down island. I registered it on St Thomas for the “ local” effect of having the sticker and local numbers to avoid being hassled by the DPNR patrol boats on their infrequent visits to anchored and moored boats and because it is accepted in the BVI and SVI.

USVI charges no sales tax, only an annual registration fee, based on LOA of your vessel, plus separate registration for your dinghy. I would advise going to DPNR offices in Tutu mall in the center of the island ( no longer at the airport) and obtaining their Bill of Sale form to fill out by you and the seller. Make sure the form is signed by both parties in the presence of a USVI notary. Be polite and patient and it will be handled efficiently.