Many states require you to register your boat even if it is documented. However you do not have to put numbers on it. You do have to put the sticker on the boat. I just sent one to MD this way. He has to reg. it. NY is the same.
Some think they can get away with out paying tax. Wrong!
There may be some states that don't collect, but I have never dealt with one. Also send boats to OH and PA. They pay.

In Indiana we don't pay sales tax on a documented vessel. We do pay a regestration fee. and have to have the state sticker, but no numbers. Just the CG numbers, inside the boat..

My numbers were already on the boat so I was able to document using the same numbers.

Bottom line is fully understand the laws in your State. We have had boats in several states that do not require registration of documented vessels. Illinois recently added a provision to eliminate the loophole. If your State requires registration for documented vessels, pay the tax and move on down the road. If on the other hand it does not, take advantage of the opportunity.

Now we are on the same page!

Don't ask the NVDC about taxes! They don't know and don't care about how or if a state knows. We certainly want them to start gathering data on this topic and feeling they have to change and provide unsolicited info to the states. And we certainly don't want the states to feel like they have to start asking the CG for info because so many boater owners are asking them so many interesting questions...