Are Documented Vessels Exempt from State Jurisdiction?
 

I have a question. Why does the boat title disappear. I had a title when I bought the boat. I financed a portion of the purchase price. The bank I used wanted the boat documented and brought in a service like yours to complete the process. When the loan was paid off I expected to see my title returned the same as in a car purchase. I have contacted the USCG and was told by them the documentation papers are in a sense your title, "just sign the back the same as a car title". That is not the same thing. I have of course had the documentation papers even when there was a loan on the boat. So, that paperwork will not assure a future buyer there are no more liens on the boat.
Thanks

Thank you for your question. The Coast Guard told you correctly. When you document a boat with the Coast Guard that is State titled, the title is "turned in" to the Coast Guard and in turn a Certificate of Documentation is produced. At any time, a documented boat can return back to a State title through a process of deletion with the Coast Guard as long as there are no liens against the boat. In essence, the Certificate of Documentation replaces a title. At the time of sale on a documented boat, the seller assigns the backside of the Certificate of Documentation, just like a title, but with the addition of a notary witnessing the transfer. Many bank lenders require a boat to be documented to secure their interest as a lienholder on the boat. When the loan is paid off, the lender submits a request to the Coast Guard to release their lien which is done through a Satisfaction of Mortgage. This document is sent to the owner of the boat and should be kept with all other documentation papers to have available at the time should the boat be up for sale.

If you should have any questions, just let us know.

Thank you!

Ok, sounds easy enough. My original bank loan was with a bank that did boat loans. This bank was later bought out by TD Bank. TD Bank told me to go to the RMV! I will call them again I guess, now that I have the information you have given about the Satisfaction of Mortgage. Thank you

I think this is what you are referring to...


Documented vessels CAN NOT display state registration numbers, we all may argue that statement to mean Documented vessels can not be registered, subsequently we would like to argue that no registration means no sales tax, I for one did go down that path with my state department of motor vehicles, I argued without any success that Documentation prohibits state registration by virtue of that rule.
the state tax boys all speak the same language, in my case both Fla and NJ. They maintain the Documented vessel must also have state registration and have paid all state sales tax, then you must display only the yearly sticker from motor vehicles and NOT display the registration numbers. The Annual Sticker will tell the police, Marine Patrol etc that you pay annual reg fees and State Sales Tax. And yess, the Coast Guard only cares about the Documentation numbers which must be permanently affixed inside the boat. Your documentation papers supersede the Title and the title must be surrendered when applying for documentation

What is the benefit of USCG documentation? Other than a bank wanting it.......... My new skater was USCG documented at 1 time....

Benefits of documentation can depend on several things. One, some state(s) where the boat is going to be registered does not charge sales tax or a registration fee on a documented vessel. Two, some people do not want the state registration numbers to appear on the boat. Three, if using the boat on coastal waters, especially on international waters, it's best to have the boat documented rather than state titled. Four, sometimes it's just an individual's preference:) Hope this helps.

A documented vessel in short terms means it has a federal title. Most banks don't want a state title because each state can be different rules. If a boat is moved to another state it can be very hard to get it repossessed with a state title. To clear the documentation of a lean with the USCG you need a form filled out by the lean holder and filed with the USCG.

MVD is straight up service and can clear the issues if used

I skipped out on paying taxes on my last boat because it was documented .
I also registered the trailer in maine .

Saved me thousands , F uk illinois, they already hose me enough, not getting any extra tax money out of me if I can help it .

MVD,
Is Florida 1 of those states? Everything I have read says you still have to pay FL Sales tax, even if you USCG document?
Tx,
Dean