mvdservice

There are some advantages for documentation over titling mainly for preference reasons. Some people don't like to have state numbers appear on their boat hull and when documented, the Official Number assigned to the boat by the Coast Guard is permanently affixed in the engine compartment, in most cases. Also, when traveling in international waters, a documented vessel is more recognized by water authorities than a state titled vessel. Some states offer a break in sales tax on a documented boat. A documented boat also records liens against a boat which have to be satisfied before a seller can transfer ownership, whereas a title could be missing lienholder information because it was never recorded properly. Lastly, if a loan is taken out on a boat, most lenders will require documentation to secure their lien interest.

PremierPOWER

A few years back a bunch of friends and I were boating at night on our local lake in Indianapolis. My buddy (who owns the boat we were on) was going slightly above idle in an idle zone and we got stopped by Dept. of Natural Resources, understandably. They did a field sobriety test on my buddy and he passed. They did a basic safety check and we passed. Then they said they wanted to search the boat. They had absolutely no probable cause that I can think of, as the driver was sober and we had all required safety gear. I immediately said, we do not consent to a search. He replied with something along the lines of "I don't really care what you consent to because we are not local police." Being that I am not a lawyer and I knew I had nothing to hide, I didn't argue with him. Turned out one of our friends had some weed in her purse. It was a small enough amount that they just ticketed her, but it was still somewhat BS that they decided to search us for no reason. I think she could have got a lawyer to get out of it but it wasn't my battle, so I cant say?

I would be interested to know the law as it applies to situations like this.

PremierPOWER

How do I find out what states have tax breaks on documented vessels? We have an address in Indiana and Florida. Im getting ready to take possession of a new boat and am documenting it with CG and registering in Florida, because of the $18,000 cap on sales tax and Indiana being 7% with no cap. Is this the best way to do this?

AllDodge

iTrader: (1)

Not a layer either, but the 4th Amendment on our Constitution says no LEO anywhere can search without due process. Like all LEO if they want to, I say NO, but do not even attempt to stop them. Anything found is not admissible and will be throw out, but you will need a layer in most cases. There is all kinds of John Laws out there that should not have a badge, but they do, and they are the ones that scare the crap out of me

AllDodge

iTrader: (1)

My buddies boat is documented in Indiana and docks year round in KY and he has paid no tax ever. Figuring IN does get the boats from the CG

Wildman_grafix

When I bought mine I lived in Indianapolis, no sales tax.

We latter moved to Florida, all I had to pay when I came down here was the $250 impact fee they put on every new registered vehicle. i asked if I would get that back if I took the vehicle back to Indiana,,,,,,,,,,,,, they didn't see the humor.

If you buy it and register it in Florida right away, you will have to pay the tax, over here its 7%.

PremierPOWER

How did you avoid sales tax in Indiana? The DMV website says 7%?

https://www.dmv.org/in-indiana/boat-registration.php

Knot 4 Me

Several years ago Illinois started tracking down USCG documented boats that were registered in Illinois but may have been purchased in states with no sales tax or a reduced (fixed amount based on value) sales tax. They sent you a tax bill in the amount of the difference between the Illinois rate (6.25% at the time I believe) less what you did or did not pay + interest. Ask me how I know. There was no fighting it.

tim mccray

I think most states will charge a use tax or sales tax. I believe Florida has a use tax if you use the boat there 6 months or more a year. So if the tax board catches up with you, you'll have to have receipts and proof that you were using it somewhere else for at least 6 months to get out of it. Then they'll contact those other states and give them a heads up so those state might send you a letter. California does it. They want a sales or use tax. Got into it with California several times. So does Arizona for anyone that documents their boats in say Havasu. A lot of people slip through the cracks.

mvdservice

Change of Address on documented boats
If your boat is documented with the Coast Guard, and you have moved since the time you documented your boat, be sure to inform the Coast Guard of your new address. It is free to do and will ensure you receive your annual renewal notices from the Coast Guard in a timely manner. You can notify the Coast Guard via email at [email protected] or by fax to 304-271-2541. Simply identify yourself, your Official number, the old address and the new address along with your phone number. You may also notify the Coast Guard at the time you renew your Documentation by providing this information on the renewal document.