Like Tree0Likes

Documented Vessel Question

Reply
Old 02-14-2006, 12:08 PM
  #1
Registered
Thread Starter
 
Havasu Cig's Avatar
 
Join Date: Jun 2002
Location: San Diego
My Boats: 2004 28 Skater / 300x's
Posts: 963
Default 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.
Havasu Cig is offline  
Reply With Quote
Old 02-14-2006, 12:17 PM
  #2
Registered
 
jayhawk261's Avatar
 
Join Date: Jul 2005
Location: Tulsa, OK
My Boats: 2000 Superboat 24 Step Bottom - Fresh 501
Posts: 1,729
Default 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!!
jayhawk261 is offline  
Reply With Quote
Old 02-14-2006, 12:39 PM
  #3
Registered
 
45sonic's Avatar
 
Join Date: Dec 2002
Location: Northern VA
My Boats: '00 45 Sonic
Posts: 3,401
Default 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
45sonic is offline  
Reply With Quote
Old 02-14-2006, 01:05 PM
  #4
45 Lip Ship / 900 Zul's
Platinum Member
 
ONESICKGLADIATOR's Avatar
 
Join Date: Feb 2004
Location: Slowing down so you can catch up
My Boats: Working on something new
Posts: 703
Default Re: Documented Vessel Question

Quote:
Originally Posted by Havasu Cig
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.
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
ONESICKGLADIATOR is offline  
Reply With Quote
Old 02-14-2006, 01:11 PM
  #5
Platinum Member
Platinum Member
 
HUSTLEthis's Avatar
 
Join Date: Nov 2001
Location: Laguna Beach,Ca.
Posts: 793
Default 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...
HUSTLEthis is offline  
Reply With Quote
Old 02-14-2006, 01:16 PM
  #6
Registered
 
OnlyMoney's Avatar
 
Join Date: Oct 2005
Location: Las Vegas, NV
Posts: 35
Default 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. But, the state is also trying to get us for previous boats, BEFORE THE LAW, that we don't even own anymore!

Gotta love the government.
OnlyMoney is offline  
Reply With Quote
Old 02-14-2006, 01:35 PM
  #7
Registered
 
Join Date: Jan 2006
Location: St Louis/LOTO
Posts: 733
Default 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?
rdoactive is offline  
Reply With Quote
Old 02-14-2006, 04:08 PM
  #8
Registered
 
Join Date: Nov 2005
Location: Pa & Maryland
Posts: 6
Angry 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 !
chaos10meter is offline  
Reply With Quote
Old 02-14-2006, 04:18 PM
  #9
32' SUNSATION
Platinum Member
 
Kanookstr's Avatar
 
Join Date: Feb 2001
Location: MA
My Boats: 2004 SUNSATION 32'
Posts: 1,143
Default Re: Documented Vessel Question

Quote:
Originally Posted by rdoactive
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?
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.
Kanookstr is offline  
Reply With Quote
Old 02-14-2006, 05:14 PM
  #10
Registered
 
The Menace's Avatar
 
Join Date: Nov 2002
Location: Bonita Springs, Florida
My Boats: 46 turbined Skater
Posts: 3,029
Default 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.
The Menace is offline  
Reply With Quote
Reply

Related Topics
Thread
Thread Starter
Forum
Replies
Last Post
Fountain38SC
General Boating Discussion
13
02-18-2008 09:04 AM
lowblue320
General Boating Discussion
6
02-17-2008 06:36 PM
docmanrich37
General Boating Discussion
6
04-19-2005 11:49 PM
32 thunder
General Boating Discussion
2
09-20-2004 12:17 AM
Curt
General Boating Discussion
25
08-12-2003 08:56 AM



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT -5. The time now is 06:13 PM.


Copyright 2011 OffShoreOnly. All rights reserved.