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Anyone register boat with Coast Guard?

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Old 07-15-2009, 11:18 AM
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Question Anyone register boat with Coast Guard?

As far as taxes go it seems absurd to me for states to tax transactions between individuals over and over.. That`s double ..triple taxation
Seems my state (IL)does not require titling or registration if the boat is registered with the C.G.. My boat qualifies for registration under their requirement.
Just for principle sakes I`d want to give the State of Il the finger not pay their extortion fees and just register with Coast Guard.

Wondering if theres any downsides
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Old 07-15-2009, 11:26 AM
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You still need to register the boat with IL even if you document with the coast guard. You will be required to display your IL registration stickers but no numbers.

I agree that taxing between individuals is double/triple etc...dipping, but there is nothing you can do.

Easier to pay taxes now than to deal with the hassle later if you get caught, just my opinion.
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Old 07-15-2009, 01:35 PM
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Illinois requires all boats to be registered here and pay the sales tax. No way around it. Even if CG registered. I looked into hard. One guy tried it and got caught. The interest and penalties were crazy.
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Old 07-15-2009, 02:16 PM
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Quote:
Originally Posted by Brad Zastrow View Post
Illinois requires all boats to be registered here and pay the sales tax. No way around it. Even if CG registered. I looked into hard. One guy tried it and got caught. The interest and penalties were crazy.
That doesn't make sense. This is my understanding....
  • A CG documented boat can be documented anywhere
  • Depending upon where you bought the boat (took delivery) is where you would owe any sales tax. Each state is different.
  • Depending upon your state, you may have to pay annual unsecured property tax each year based on a tax assesment. My boats are in Orange County CA and the tax rate is 1.03511%
  • Since my boats are documented, I do not have to register them with the California Department of Motor Vehicles
  • Annual Coast Guard documentation and certification is $10 each year per boat
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Old 07-15-2009, 02:23 PM
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Depends on the state and laws. It is clear all states want their tax. Sales tax is one, some states have "personal properety tax" yea its yearly on boats. You can aviod it in some states by US coast guard registering it, but depending on the state they may try to track it down. Its all a bunch of BS.
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Old 07-15-2009, 02:30 PM
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Unlike California where I live....

Illinois does not have a statewide property tax. Property is taxed on the local level only, and includes only real property such as land, buildings or permanent facilities. Real property is assessed at 33 1/3% of market value. Illinois does not tax personal property such as automobiles, trucks, or boats. However, corporations pay a 2.5% personal property tax replacement income tax (S corps., partnerships, and trusts pay 1.5%).
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Old 07-15-2009, 03:12 PM
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My boat is registered with the CG, but I also have to have my states' registration sticker displayed (Oklahoma). I don't have to run numbers however.
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Old 07-15-2009, 03:26 PM
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I don't happen to have my boat registered with the C.G is titled & everything n Ohio but I have still yet to put my #'s on the bow just the state sticker, haven't had anything said to me yet .... Just curious what would they say or do about not having them on?
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Old 07-15-2009, 03:57 PM
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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.
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Old 07-15-2009, 04:02 PM
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Good Advice, Illinois sandbox, Illinois rules
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