Visit our Popular Forums

Muaddib1116 · 20-04-2020, 13:19

I'm trying to get a handle on what the implications of your hailing port are, in regards to a CG Documented vessel.

I live in Boston, but I am planning on mooring my future boat in RI, at least for the first season. Does that mean that I need to Document it with the hailing port as the town where it is moored? Or should I use Boston? After a season or two, I will probably keep the boat in MA, somewhere near Boston, for a while. Does that mean that if I had Documented it with a RI hailing port, I will have to update the Documentation with the new location?

Do you pay the taxes of the state of the hailing port? or just where the boat is kept?

Thanks.

**a64pilot** · 20-04-2020, 13:24

You can make it anywhere you want to, but I wouldn’t one a State that is aggressive about coming after taxes, like California for instance.
Some even will use Earth Tx.

Tayana42 · 20-04-2020, 13:25

You can choose any place in the US or a US Territory that has a post office, even somewhere exotic like Honolulu or away from water like Death Valley. It doesn’t matter for tax purposes. You will be taxed by the state where your boat is located. If your documentation shows a home port in another state that state may try to tax you so keep good records of where you pay slip fees and where you pay the tax for the boat.

Captain Bill · 20-04-2020, 13:32

Quote:

Originally Posted by Muaddib1116

I'm trying to get a handle on what the implications of your hailing port are, in regards to a CG Documented vessel.

I live in Boston, but I am planning on mooring my future boat in RI, at least for the first season. Does that mean that I need to Document it with the hailing port as the town where it is moored? Or should I use Boston? After a season or two, I will probably keep the boat in MA, somewhere near Boston, for a while. Does that mean that if I had Documented it with a RI hailing port, I will have to update the Documentation with the new location?

Do you pay the taxes of the state of the hailing port? or just where the boat is kept?

Thanks.

Hailing port in the US can be any place with a zip code. It has nothing to do with where the boat is moored or owned. A search of CF will find many threads on this subject. The hailing port also has nothing to do with where you pay your taxes. That being said, California is well known for assuming that any California based hailing port is in fact a California based boat and you have to prove that your boat is not in fact a California based boat. I am unaware of Taxichusetts actually doing the same. That being said I am aware that Senator John Kerry lost his fight over keeping his boat in RI while he was a MA resident and had to pay MA Taxes. I don't believe it had anything to do with the hailing port of the boat, but rather his MA residency and him trying to avoid state taxes by buying and keeping his boat in Boat Sales Tax free RI. I may be wrong on the details of that issue however.

Island Time O25 · 20-04-2020, 13:39

Sen. Kerry was perfectly within the letter of the law to have his boat registered and kept in RI. What he had is a political hot potato where he traditionally advocated higher taxes for us, peons, while availing himself of the legal loophole of skipping MA tax man's reach.

It is not the state of residency of the boat owner that matters but the state where it is registered, kept and used. Legally, Kerry did nothing wrong. Politically - that's another matter.

Captain Bill · 20-04-2020, 13:53

Quote:

Originally Posted by Island Time O25

It is not the state of residency of the boat owner that matters but the state where it is registered, kept and used. Legally, Kerry did nothing wrong. Politically - that's another matter.

Actually that depends on the state. In Florida, if you are a resident you owe use taxes and registration taxes to Florida no matter where you purchase or keep your boat. The only escape clause for a Florida resident is to pay equal or higher taxes in the state where you bought it. You technically are still required to register it in FL. Other states may or may not have similar requirements.

belizesailor · 20-04-2020, 14:19

For a recreational vessel you can use any hailing port you want. It has no legal/tax significance...though it wont stop tax authorities from trying.

I've seen "Earth" etc. I dont think that is technically valid, but no one really cares for a recreational vessel. I suspect that such comic hailing ports dont match whats on the Documentation record (technically a violation).

EARTH is valid, so long as you have a small tx beside the EARTH.
https://en.wikipedia.org/wiki/Earth,_Texas

Muaddib1116 · 20-04-2020, 14:21

Thanks for the replies guys, that's really helpful.

If I ever do decide to change the hailing port, after Documenting the vessel, I'll have to update the Documentation with the CG right?

Discovery 15797 · 20-04-2020, 15:00

Quote:

Originally Posted by Muaddib1116

Thanks for the replies guys, that's really helpful.

If I ever do decide to change the hailing port, after Documenting the vessel, I'll have to update the Documentation with the CG right?

Yes, and pay a fee.

Here are the answers to your questions regarding USCG Documentation, specifically change of name or hailing port.

SVHarmonie · 20-04-2020, 15:06

Quote:

Originally Posted by Captain Bill

Actually that depends on the state. In Florida, if you are a resident you owe use taxes and registration taxes to Florida no matter where you purchase or keep your boat. The only escape clause for a Florida resident is to pay equal or higher taxes in the state where you bought it. You technically are still required to register it in FL. Other states may or may not have similar requirements.

Sorry Capt Bill, that is NOT true.

If your boat is never in Florida, you are NOT required to register an out-of-state boat even if you are a resident. I know, I take advantge of this "loophole." No state can collect use taxes on property that is never inside the state.

Residents of Florida are required to register a boat they own within 15 days of moving it into Florida (and pay any taxes owed). Nonresidents have (I believe) 60 or 90 days.

Since you can't register a boat in two different states, the law as you describe it would make it impossible for a Florida resident to keep a boat in another state that requires registration of all boats in their waters.

**hlev00** · 20-04-2020, 15:18

FWIW here is my personal experience wrt to Mass taxes.

I live in and pay taxes in Massachusetts. I bought a boat in CT and moved it to Jamestown RI. My USCG documentation home port and marking are Jamestown RI. I considered Bristol to keep the number of letters down.

I keep the boat in RI during the winters. About 18 months later after my purchase I received a letter from Mass Dept of Revenue stating that, based on USCG information, I owed a sales tax on my boat. I supplied the DoR with copies of my purchase and sale, and invoices from my summer and winter boat yards to back up my claim that the boat remained in Rhode Island. They closed the case without assessing a sales tax.

You might be able to head off an inquiry by filing for an exemption on form ST-6E, or that might just raise questions. Something to look into.

Muaddib1116 · 20-04-2020, 16:11

Quote:

Originally Posted by Discovery 15797

Yes, and pay a fee.

Haha, yeah, of course.

Quote:

Originally Posted by hlev00

FWIW here is my personal experience wrt to Mass taxes.

I live in and pay taxes in Massachusetts. I bought a boat in CT and moved it to Jamestown RI. My USCG documentation home port and marking are Jamestown RI. I considered Bristol to keep the number of letters down.

I keep the boat in RI during the winters. About 18 months later after my purchase I received a letter from Mass Dept of Revenue stating that, based on USCG information, I owed a sales tax on my boat. I supplied the DoR with copies of my purchase and sale, and invoices from my summer and winter boat yards to back up my claim that the boat remained in Rhode Island. They closed the case without assessing a sales tax.

You might be able to head off an inquiry by filing for an exemption on form ST-6E, or that might just raise questions. Something to look into.

Thank you, this is really helpful, it is very close to what I am planning on trying to do. I think I'll have enough room for "Jamestown" if I stick to 4" lettering

Was that attempt by the MA DoR a one time thing? Or do you have to clear it up with them every year/few years?

**a64pilot** · 20-04-2020, 16:16

Beliezesailor, I apologize, I inadvertently edited your post when I meant to quote it, I’m trying figure out how to undo that.

Quote:

Originally Posted by belizesailor

For a recreational vessel you can use any hailing port you want. It has no legal/tax significance...though it wont stop tax authorities from trying.

I've seen "Earth" etc. I dont think that is technically valid, but no one really cares for a recreational vessel. I suspect that such comic hailing ports dont match whats on the Documentation record (technically a violation).

EARTH is valid, so long as you have a small tx beside the EARTH.
https://en.wikipedia.org/wiki/Earth,_Texas