The tax man cometh

[Patrick17430]

I received a letter from the Alameda County Assessor wanting me to file a vessel owners report so the Governator can levy a property tax on my boat. I keep the boat in California but I live in Texas. The boat is USCG registered in Texas. Can they do this ? How much can I expect to have to pay on a 70K boat ? Can anyone shed some light on this subject for me ? I'm a little slow in my old age.

 

[Ross]

I think this is the time to call the tax accessor and ask. Don't volunteer a value and don't feel like you are being picked on. Each state has it's own set of laws for collecting taxes.

 

[thereisabelle]

would this be state or county tax? we live and regester(da boat) in TN. but some people say the marina is in MS. on pickwick boat reg. and fishing lic. cover the whole lake, with the exception of some long creeks. look forward to the feedback on your question. jimbob

 

[Steve Dion]

The location of your residence has nothing to do with property taxes in California (probably no other states either).

You can expect a minimum of 1%-1.25% of the value of the boat. (value to be determined). They will probably use one of the "blue book" values for that boat. What year is it? You can always claim a lesser condition that what they will assume (which is probably excellent).

Don't they have property taxes on boats in TX?

 

[KandD]

Texas doesn't consider vehicle's property, so you just pay sales tax the year you buy it. You do have to pay annual registration fees.

 

[kenn]

...boats are 'property'?

 

[RECESS]

No tax on boats in Georgia either. They do not even retitle a boat here.... of any size.

 

[Benny]

I presume that you have registered your boat for use within the State of California. California law does not differentiate as to where the vessel may be titled or where your residence may be. The state takes the position that the boat is being kept within their jurisdiction and they are entitled to a property tax. For a $70K boat the anual tax will be in the neighborhood of $800. Other than mitigating the amount to be payed by securing a lower assesment than the $70K your other option would be move the boat out of the state and notfy the tax collectors office that you are doing so and request that the usage registration be cancelled. There is a gentleman with a documented boat in Mexico who is still being hounded by the Tax Collector in California as apparently he failed to notify the boat had left the state. Communicate with the Tax Office an explore your alternatives.

 

[sailingdog]

Yes, they can do this, since the boat is in California.

I received a letter from the Alameda County Assessor wanting me to file a vessel owners report so the Governator can levy a property tax on my boat. I keep the boat in California but I live in Texas. The boat is USCG registered in Texas. Can they do this ? How much can I expect to have to pay on a 70K boat ? Can anyone shed some light on this subject for me ? I'm a little slow in my old age.

 

[MrUnix]

While it would seem odd that a state can charge taxes to non-residents, it appears that they base their decision on where the property is kept, not where the owner lives.. Here is what they consider personal property and how they decide if it should be taxed or not:

From: http://www.boe.ca.gov/proptaxes/pdf/pub29.pdf:

Personal Property
Tangible personal property is taxable where it has established "permanent situs" (location), regardless of where the owner lives. The only exception is personal property belonging to members of the armed services. Some types of personal property do not have a fixed location and are movable; as a result, determining permanent situs depends on a number of factors including the type of property, the way the property is typically used, and where the property owner lives.

Aircraft and Vessels
Private aircraft are taxed at the location of the airport or hangar where they are usually kept. Commercial certificated aircraft are taxed on an apportioned basis in each county to which flights are made. Vessels are generally assessed where they are habitually located. A small boat not habitually kept at a mooring, but lifted from the water and trailered to the owner's residence or other location, is taxed at the location where it is usually kept.

You might have some wiggle room, but I think the 'Habitually located' part is what will get you. I wonder how they went about discovering your boat in the first place since they should not have any records of it in California.

Cheers,
Brad

 

[JoeWhite]

Gentlemen- I recently discovered this tax law. Here is what it says " If your boat is kept at a marina on January 1st of 2008 you will be billed for property tax from July 1st of 2008 through June 30th of 2009 for that county". This means that if you sold your boat on April 5th of 2008 and the boat was moved to another county on April 5th of 2008 - you still owe the property tax eventhough you sold your boat and you no longer owen it. Also the new owner will not have to pay property tax to the new county where it was moved to since it was not there as of Jan 1st of 2008. Instead it was at an other county marina as of Jan 1st of 2009. So the new owner will owe the property tax as of July 1st of 2009 through June 30th of 2010.
I have made no errors in the above example. I had to read the tax low many times in order to finally understand it.
This law is crearly stated at the bottom of your bill that you receive from the county. It does not have to make sense. But you do have to have a PHD in english and tax laws to understand it!

 

[Old Skool Neil]

I wonder how they went about discovering your boat in the first place since they should not have any records of it in California.

It is a personal property tax assessed by the County. The County Assessor found you by auditing the marina's records and reconciling them by physically walking the dock.

 

[Peggie Hall HeadMistress]

Oops...not quite.

No tax on boats in Georgia either. They do not even retitle a boat here.... of any size.

I lived in GA and kept my boats on Lake Lanier for 26 years...and unless the law has changed since I left in 2001, Georgia DOES tax boats...they call it an "ad valorem" tax, assessed to the owner of record as of Jan. 1 of each year. And while you're right that GA does not title boats, they do register 'em...ALL of 'em, including documented vessels. They walk the docks looking for delinquent boats, and will chain 'em to the dock and even seize 'em if the delinquency is serious enough. The tax is assessed by the county in which the boat is kept, not the owner's county of residence...so out of state owners have to pay it too.

 

[RECESS]

The only ad valorem tax we have been assessed is to the trailer. We get that same tax on our horse trailer too. It is about $20 something dollars.

 

[Ed Caldwell]

The only ad valorem tax we have been assessed is to the trailer. We get that same tax on our horse trailer too. It is about $20 something dollars.

Recess, Peggy is correct, it appears you are flying under the tax radar right now. :naughty:

Is your boat registered in the state of Georgia? The county where the boat spends more than half its time during the year should be sending you a tax bill. The previous Georgia owner or dealer should have notified the county of the change of ownership to get the process started, then the notices keep coming to you until you sell the boat. OTOH, there may be a minimum threshold below which no ad valorem tax is due...

 

[BobM]

They'll get you one way or another

I live inland but keep my boat in Winthrop MA. They charge an excise tax set by the State, which is ridiculously low...$75 or the like for $20K boat (it is based on age and length...>7 years and 30-35 feet is valued at $9300)...but then nail on a $225 "waterway fee" on top of that. My friend really makes out on the excise. He bought a leftover 2007 39 footer and pays on only $24K of value for excise...of course he had to pony up 5-6% for state sales tax recently.

 

[sailingdog]

I'd point out that at least where I keep my boat, the "waterways use fee" covers the pumpout boat service that brings the pumpout boat to your marina for FREE.

 

[timvg]

You'll probably end up paying about $600-$700, maybe less. They don't seem to go by the high value of the boat. We have ours documented, so we don't have a yearly registration fee.

 

[RECESS]

Recess, Peggy is correct, it appears you are flying under the tax radar right now. :naughty:

My boat is a 1980 25 O'Day, perhaps the blue book is under what they tax. I do get an ad velorum tax when our tags come due, just thought it was for the trailer, I could be wrong. It is only 20 something dollars. I also keep my boat on a private lake.

 

[Patrick17430]

The location of your residence has nothing to do with property taxes in California (probably no other states either).

You can expect a minimum of 1%-1.25% of the value of the boat. (value to be determined). They will probably use one of the "blue book" values for that boat. What year is it? You can always claim a lesser condition that what they will assume (which is probably excellent).

Don't they have property taxes on boats in TX?

Texas Doesn't have the tax and I imagine I will have to register it in California as well now that they now where I'm at. Whats the reg. sticker fee ? And thanks for all the post everyone. I guess we have to pay for those three CG cutters that just sit across the estuary from me.