coast gaurd documentation of boat in MI
 

In the process of buying a boat from MO that is coast gaurd documented. documentation is being changed over to me. anyone know how this pertains to state of michigan license, sales tax ect? not even sure what a documented boat is. little that i have read makes it seem like you can't have a boat reg. federally and also state reg.? but then what do you do about MC numbers? seems like you would get pulled over alot with out them.

YZ go thru this site thoroughly you should have all your answers.

http://www.uscg.mil/hq/g-m/vdoc/nvdc.htm

In Indiana we still have to have the state regestration, just a sticker, no numbers.. That is so they can get their property tax. There is no sales tax paid when it is Coast guard regestered.

That's a nice savings in Indiana.

I documented my boat with Coast Guard two years ago in Michigan. Was told that I do not need and should not have MC numbers but still need to pay for state registration as well as sales tax. I kept my MC numbers on anyways so that I wouldn't be pulled over all of the time...

What kind of boat did you get and we'll look for you when we head "up north"!

:)

not quite final yet, but looks like it will be a 99 36 outlaw. just got the trailer for it today, yea i know maybe should get boat first than trailer. but what the hey.

i was wondering about the mc #'s, since it will be documented in my name by the time i get it to michigan, i wonder if they will even issue them to me.

give a holler when your up this way.

I am in the processs of documenting my new boat so I call the Michigan Secretary of State. I was told that if the boat was documented with the coast guard it should not and could not be titled by the state of Michigan. Therefore, you are not required to register the boat. Sales Tax?? I was told the US Coast Guard informs the states of boats which have been documented.

I just hope the people at the Secretary of State know what they are talking about!

see that is what i read somewhere, can't find it in the site that GLH linked, but I know I read that if a boat was documented by the coast guard (nationally) by law it could not than be state registered.

just dont know what that means when you are one the water.

anybody know about the rules in illinois on a new boat ?
i was told you have to pay sales tax... if you documented or not ?

any way around the tax ???????
Thanks
Don

A-B-C’s of Vessel Documentation
Very simply put...documentation of a vessel is a national form of registration. It dates back to the 11th Act of the First Congress and is one of the oldest functions of the U.S. Government. There are many different and separate reasons to document a pleasure boat or commercial vessel.

Generally it is because the ownership of documented vessels is easier to trace through the United States Coast Guard Abstract of Title. This federal system provides a greater assurance of title over state registrations because of the USCG rigid standards in chain-of-title and paperwork procedures. Once initial documentation is complete, a six or seven digit Official Number is issued to the vessel which must be permanently affixed to the structure of the hull and a Certificate of Documentation is issued to the owner(s).

The additional and perhaps most important reason to document a vessel is because most lending institutions will require USCG Documentation to allow them to record a Preferred Ship’s Mortgage. This instrument provides the greatest protection for the lender because it is enforceable throughout the United States and some foreign countries.

Recreational Vessels: If the vessel travels to foreign waters, the Certificate of Documentation facilitates clearance with foreign governments and provides certain protection by the U.S. flag. Also documentation eliminates the need for state registration numbers on the bow.


found this on another site

CERTIFICATE OF DOCUMENTATION - Issued by the Coast Guard this is a document that proves ownership of a specific vessel. Similar to a state title it shows vessel name, hailing port and the owners home and address, along with any endorsements or restrictions. The certificate is good for one year and renewed at no charge.

found this too.

dont know what it all means though

Trust me regardless if it's documented or not you should put the MC numbers on. Even though my big boat is documented I dispaly my MC numbers.I can't tell you how many times my know it all friends have been pulled over. To me it's just not worth the hassel. I would suspect that it's going to be even worse this season due to the current world events.

Sam

Bought my 36 Outlaw in Kentucky,at that time it was already documented,just had to have it transfered to my name.Then I registered it in Ill. even though I live and boat in Mi. ,big cost savings by reg. in Ill. versus Mi;) All I have on the boat is the name of the boat on the side,hailing port on transom,and Ill. registration stickers on bow,No hassles in 3 summers of boating all over Lake Mi.Plus the trailer is liscensed in Mi.;)
Steve

I have never been hassled. In IL we are required to display the state registration stickers on the corners of the transom somewhere near the boat name and port. Documentation is a bonus if you ever leave the country and there is no additional charge each year. The IL state registration ar also a little less expensive if you document.

Steve

sam, does the secretary state know that your boat is documented? did not think you could have multiple registrations. i agree with the mc numbers, we boat by the coast gaurd station here all the time, have been stopped before and dont want to relive the hassle.

Michigan requires registration of the boat even though it may be documented, which means you're going to pay the sales tax unless you can prove the boat was already registered in your name in another state. But if that's the case you're still going to pay the registration fee.

Crazyhorse is right!

I just received this e-maim for Michigan Secretary of State.

Due to state and federal laws, watercraft that are documented by the U.S. Coast Guard are not eligible for a Michigan watercraft title. However, documented vessels are required to obtain a Michigan watercraft registration at the regular fee. The Michigan registration (MC) number does not have to be displayed on the vessel; however, the Michigan watercraft decal must be displayed on each side of the forward half of th hull as high above the waterline as practical.

Documentaion papers must be shown. Also, if ownership is transferring, 6% sales tax is due on the purchase price of the vessel. Ouch!

Do yourself a favor and GET A TITLE in Michigan. If you happen to let your C.G. documentation expire you'll need this to sell the boat! This also permits the next owner to decide for himself whether he wants to redocument. All three of the documented vessels I've had in Michigan have been titled.

Now days documentation advantages are basically for the bank or mortgage co. (easier to repo). You still have to pay the sales tax and register the boat in your state. If you want to, for a fifteen dollar fee you can get the boat released from documentation. It will take about two weeks. Just call the doc. center for info at 800-799-8362.

The situation seems to vary a lot from state to state. While the documentation procedures don't change, you have to watch out for user's fees and sale tax charges (scams to me..). For example, in Maryand, you only have to pay $10 for a 2-year user sticker, but if you bought the boat out of state within the previous three years, you have to pay the difference in sales tax rates. Check your state boating/DNR regulations carefully.

thanks for all the info.

scott

Good thread :)

Wow! This is interesting.
I'm planning on going to License branch next week to do the title and registration stuff on the boat I just bought. SO, if I go the CG route, I won't have to pay the over $4000 just in sales tax alone I have planned on?

I've had documented boats in MI for a few years, never been hasseled about not having MC #'s. I have played by the rules and did have my registration sticker. Usually, someone is going to get sales tax. If it is lower in the state where you buy the boat pay it there, make sure to get proof to show the SOS.

Reading all those rules convinced me of one thing. This documentation business is one royal pain in the ass and a damned expensive one too.

All you've gotta' do is transact the sale in a no-sales-tax state and register it there. Then move to whatever state you want to be in permanently and transfer the registration.

In Ms it costs $36 for a two year sticker and you do it on a post card. None of this USCG hassle. Stickers for boats under 35 feet are $10.