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ROFLMAO

LakeRacer

I live in Phoenix, AZ. I purchased my boat in Fort Meyers, FL. The dealer there did not charge me sales tax as I went to Florida to pick up the boat. When I got back to Arizona I had the boat documented and paid no sales tax.

This is how it works in AZ. All boats (motorized) in AZ need to be registered at the Game and Fish Department. They will want to see a bill of sale showing that tax is collected. After paying the fees a certificate of number (registration) is issued for your boat and you put on the appropriate numbers. If the bill of sale doesn't show any sales tax collected, the Game and Fish Department will not issue a certificate of number. They make you go to the AZ Dept of Revenue and pay the tax due.

How then do you not pay tax on a documented boat? In Arizona, the state won't allow dual registration. If the boat is documented, the Game and Fish Dept. won't allow you to register it. If you can't register it, no one knows if you paid sales tax or not. Easy.

wms

Lake Racer, its exactly the same in VA which is why I decided to go with documentation. Otherwise, I would have needed to register with the Dept of Game and Inland Fisheries and pay $2000 sales tax. Documentation cost me $133 with the CG and $175 for some nice vinyl lettering on the stern.

I am told by a few folks here that they also avoid property tax by being documented. (The city gets their list from Game and Inland Fisheries - not so sure if they get one from the CG) We shall see.

Macklin

Iggy

I was reading that some states still require you to register the boat even though it's been documented.
Greedy bastards.

Article in PassageMaker Magazine talked about taking delivery of the vessle "off-shore" or outside U.S. waters. Then keeping it in Mexico (Ensenada) for 91 days. After then you can return it to the U.S and not pay sales tax and apply for Calif. tax exemption.

Jana

I put vinyl numbers on one side of my engine compartment and coated over with resin. Only bad thing is that the resin turns kind of yellow.

Cignificant

Macklin, if they catch you they will tax you. I wasn't paying any taxes, and then built a garage out back where I keep my boat. I think the building inspectors turned me in, so now I have to pay (boat is documented). And there is no "car tax" relief..

Sean

I just went throught this with my boat...and it was the hardest thing I've ever had to do(pay that sales tax)...

The boat needed to be documented because there is a ship's mortgage on it, but the kicker is that in New York state, the boat also requires a title to prove ownership. Well, the only way to get a title is to pay the sales tax.

It unclear to me at the time whether I needed to register the boat also, but I figured I would do it anyway and put those ugly numbers up on the bow along with the ugly sticker the state gives you. I later found out it is necessary to register the boat with the state and the numbers are not required, but I figured I would avoid the hassle of being stopped by our local Bay Constables for something stupid...

just my experience so far...

LakeRacer

is also a non-title state. No one knows the boat exists.

wms

Hey Cig, I hear ya on that one. But, I am told that the city dispatches inspectors to the boatels to look for unregistered boats. So I am not holding out much hope. Although, one of the people I talked to who is documented and has not gotten a property tax bill for years, racks up at the same boatel.

As I said, we shall see. Luckily I missed the tax for this year... .just got the bill for the Baja which I no longer own.

Macklin

OnTheBay

Well here is my experience with Documentation verse DNR registration in Maryland. In MD when you register with DNR you get both a number that you must display at the bow like normal and a 2 year registration use sticker about 4"X4" square. When you are documented you do not display the registration numbers, but you must still display the 2-year registration sticker. So here is how it works; the DNR spot checks marinas each year looking for boats that are docked in Maryland or documented with a Maryland Port-of-Call. If the boat does not have a DNR registration use sticker (the 4"X4" one) they will site you on the spot, if you are aboard, or they will get your address from the CG Documentation and send you a citation in the mail. When you go to pay your MD DNR use registration fee to get your 4"X4" sticker they will check to see if you have paid sales tax if not you owe sales tax based on the NADA stated value. I know this to be the case because it happened to me, even worse they tried to charge me for interest on the sales tax from the date the boat was first documented. I beat it but almost had to pay an additional $5K in interest and penalties. Maryland Boaters Beware!