Documented Vessel Question
 

I bought my previous boat almost four years ago, and sold it about one year ago. I bought the boat from a dealer in California and took delivery in Arizona because we own a house there and home ported it there. I had an agent who I was referred to by the dealer do the documentation of the boat for a fee of $1500.00.

Now four years later I have the State of Arizona coming after Me for sales tax on the boat. My first question, are documented vessels subject to the same taxes that state registered vessels are?

My second question, who is responsible for paying the tax? I own my own business and I am responsible for paying sales tax on items I sell. If I don't collect from the customer I still have to pay. It just seems kind of odd that the State is contacting me directly. If I bought a car from a dealership would they do the same thing?

Thanks for any info anybody can give.

Re: Documented Vessel Question
 

As far as I know, if you bought a car, you are responsible for paying the tax directly to the state. It isn't the same as buying a CD at Best Buy because there are so many other facets to cars, like boats. There is Sales tax 1 time, perosnal property tax every year (depending on state), registration every year.

As far as documentation goes, different states have different laws. From reading here on OSO, I have come to understand that many states still require full taxes and a registration sticker even though the vessel is documented with the coast guard. They may not require hull numbers though. I would bet that you are liable for all taxes that have not yet been paid. The theme here? Don't get between a government entity and its tax collections!! :D

Re: Documented Vessel Question
 

We just had the same situation here in Maryland. Got a lovely letter from the state infoming us we owed back taxes to the state for a documented vessel in their state. bought out of state but because it resides on a trailer within the state borders ( or as they said " principal state of use" ) we owe them money and a lot of it :mad: :mad: :mad:

Re: Documented Vessel Question
 

If you bought a boat from any state other then were you are calling home port you must the sales tax for that state that you are calling home port. even if you have it documented It. Most states have a usage tax for this reason. Most states say that if you keep a boat in that state for 30 days or more you must paid the usage tax.
Example If you came to New York for the summer and kept you boat here for 30+ days them by law you are to paid the usage tax of 8.75% and you have it documented in Florida and paid the sales tax when you bought it of 6% them the state of new York will make you paid the 2.75% as a usage tax.

Rick OSG

Re: Documented Vessel Question
 

I believe Arizona amended the law so they can collect taxes on used boats sold from dealers...You still have no sales tax on used boats sold through private party...We had to send in our check too...Arizona does not require state registration if you have it documented...

Re: Documented Vessel Question
 

We went through this recently with Nevada. They changed their law at the beginning of 2004 or 2005. We had all documented, but now had to pay a LOT of taxes to the state for them. So, now they're both documented and registered. :mad: But, the state is also trying to get us for previous boats, BEFORE THE LAW, that we don't even own anymore! :mad: :mad:

Gotta love the government. :rolleyes:

Re: Documented Vessel Question
 

You may want to check that that $1500 didn't go for taxes and documentation.
Last time I checked, the USCG fee was about $100 and you could do it yourself. Maybe the rest was for taxes in the state you purchased the boat?

Re: Documented Vessel Question
 

$ 1500.00 is a lot to document a boat. You can plod thru it yourself for about $ 150.00 but it takes forever.
I bought a boat out on Long Island ( 6% tax) and signed a paper that I would move it out of New York state within 15 days.
When I got it to Maryland I had 30 days to pay Maryland tax ( 5%) on it and it took another 6 months to get Documentation straightened out with CG.
Last two years Maryland has hired a bunch of water cops on a percentage deal, to check HIN numbers on boats in marinas. If'n your taxes ain't paid they will get you big time with all the penalties and interest.
Got 5 boats in my marina just last year, one for almost 100 grand in tax, penalties and interest.
They settled with him for around 35K !

Re: Documented Vessel Question
 

I agree, $1500 is way off!!! maybe he was supose to pay tax with the $1400 left over and didn't??? I just had my 32 USCG doc. and it cost a total of $120.

Re: Documented Vessel Question
 

Illinois just changed their law as well. A documented person to person sale and a boat which was registered but not used in the state did not have to pay taxes. Any boat purchased from a dealer demanded taxes to be paid.

Changed in 04.