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Anyone register boat with Coast Guard?

Old 07-15-2009, 04:23 PM
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Iowa and TX both have to pay taxes to reguardless of CG documentation. I run numbers just to avoid the water Gestapo. No way to avoid the taxation man.
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Old 07-15-2009, 04:47 PM
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Originally Posted by Brad Zastrow View Post
I have a boat registered with the CG and Illinois and I paid the sales tax. I even put the numbers on the side so the local boys do not hassle me. Water cops do not understand some of the laws. So I fugure why give them an excuse to pull me over any more than I do now. I get inspected at least once a year and have been given tickets in the past for lack of a working horn or numbers etc. Now I have it nailed with the requirements and have been good. Bottom line is Illinois you must pay the sales tax now matter where you bought it or even where it is registered. If you live here and use the boat here you must pay the tax. I even looked into forming a Delaware Corp to hold the boat. But the little loophole is where you live and boat for the state collectors. Do not risk not paying it as the moeny you will owe can get crazy.
Correct. I just stroked a check to the Illinois Department of Revenue for sales tax owed on a boat I bought in MO in 2005. I CG registered the boat and MO state registered the boat as it was slipped in MO. I paid the $1000 MO in-lieu tax and also paid MO personal property tax on the boat. I registered the boat in Illinois 2 years later and was told by the licensing service I used I owed no sales tax as the boat resided out of state for the first 3 months I owned it. WRONG! They only way I would be exempt from Illinois sales tax was if I owned property in MO and the boat resided there for more than 3 months after the purchase. Illinois state sales tax was owed at the time of purchase. Illinois will give you credit for the sales tax paid out of state but you owe the difference, if any, between the amount you paid out of state and what the tax would have been in IL (6.25% of the purchase price). I got credit for the $1000 in-lieu tax but did not get credit for the $700 in MO personal property tax I paid. I had to pay the difference between what I would have owed in Illinois less the $1000. In addition, I had to pay $900 in interest and late filing penalties. Bottom line, pay the tax and don't trust a licensing services knows what they are talking about when it comes to boat registration. I would have gladly paid the IL sales tax two summers ago and avoided the late filing fee and interest. I kept fighting it as the licensing service insisted I owed nothing. I was finally audited and had to provide all documentation surrounding the purchase. The auditor set me straight...quickly.
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Old 07-15-2009, 05:49 PM
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Yep, MI still knicks you for taxes and registration if CG documented as well.

I don't see any advantage to it here. Mine is registered ( I need to actually transfer or remove it) and I can't find any benefit at all. I put the numbers on the front to avoid any hassles anyways.
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Old 07-15-2009, 06:28 PM
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Seems its not worth the hassle, I thought the DNR was pretty clear on their site thou :

IL law:

Watercraft exempted from registration and titling: Watercraft shall not be required to be registered and titled under this Act if it is:

1. A watercraft which has a valid marine document issued by the United States Coast Guard, EXCEPT THAT any such documented vessel used upon the waters of this State for more than 60 days in any calendar year shall be registered in compliance with this Act.
2. Already covered by a number in full force and effect from another state, if such boat will not be within this State for a period in excess of 60 consecutive days.
3. A sailboard.
4. A watercraft from a country other than the United States temporarily using the waters of the State.
5. A watercraft owned by the United States, a state or subdivision thereof, used solely for official purposes, and clearly identifiable.
...etc etc..

I spoke with the DNR today and they told me it still has to be registered even with C.G. documentation.. thats the opposite what the above states.. Coast Guard told me today once I register with them I need to surrender my title to my state since documented boats are not titled. Without title and registration theres is no tax IMOP. Lots of misinformation. I can`t get a consensus
As far as the 60 days, who is going to know the boat is here 60 days here unless they post someone at my house.

Last edited by ICDEDPPL; 07-15-2009 at 06:36 PM.
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Old 07-15-2009, 07:23 PM
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1. Form a Delaware Corporation (No sales tax in Del.)
2. Put the boat in the Corp. name.
3. Document your boat with the Coast Guard as I did.
4. Many states, like Florida, have laws that let you keep your "out of state" boat in the state as long as it's listed with a licensed yacht/ ship broker as mine is.
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Old 07-15-2009, 08:04 PM
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In Missouri you pay an "In-lieu watercraft tax for documented vessels". I documented by 292 when purchased new in 2005. The in-lieu tax was $2000, much less than what sales tax would have been. No need for numbers on the outside of the hull, just a registration sticker. Water patrol around here understand and I have not been questioned once.

Missouri DOES have personal property tax, and that just sux anyway you look at it...
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Old 07-24-2009, 08:17 AM
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Default MO tax/fees

Anyone register with the USCG in MO, does it help any or is it just a myth

Here is what Missouri expects

Boats/Vessels/Outboard Motors
Registration and Processing Fees

•Outboard Motors - $2 registration plus $3.50 processing fee.
•Boat/vessel - determined by the length of the boat/vessel.
Length of Boat/Vessel Fees Processing Fee
Under 16 feet $25 $3.50
16 feet but less than 26 feet $55 $3.50
26 feet but less than 40 feet $100 $3.50
40 feet and over $150 $3.50

Title and Processing Fees

•Outboard Motors - $5 titling plus $2.50 processing fee
•Homemade boat/vessel that is at least 16 feet but less than 28 feet in length, made out of wood, and has a beam of five feet or less - $55 registration plus $3.50 processing fee
•Vessel - $7.50 titling and $2.50 processing fee, plus a $3.50 processing fee for a Missouri registration number ("MO" number) if one has not been previously issued.
Documented Vessel "In-Lieu" Boat/Vessel Tax

Less than $15,000 $500
$15,001 to $30,000 $650
$30,001 to $50,000 $1,000
$50,001 to $100,000 $1,400
$100,001 to $150,000 $2,000
$150,001 to $200,000 $3,000
$200,001 to $250,000 $4,000
$250,001 to $300,000 $5,000
$300,001 to $350,000 $5,500
$350,001 to $400,000 $6,000
$400,001 to $450,000 $6,500
$450,001 to $500,000 $7,500
$500,001 to $550,000 $8,500
$550,001 to $650,000 $9,500
$650,001 to $750,000 $10,500
$750,001 and above Add an additional $1,500
for each $100,000 increment.
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Old 07-26-2009, 06:34 PM
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Originally Posted by JDTDBD View Post
Anyone register with the USCG in MO, does it help any or is it just a myth
It helps. Compare those costs with what you would pay in sales tax.
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Old 07-26-2009, 07:05 PM
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Document boat with a La. port ... no sales tax in La. on used boats.
Common practice in the South.
May have to pay the state you live in Reg. Sticker fee.
Tx. I believe is like $36 a year or for 2yr. sticker.
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