Coast Guard or Nationally Registered

Dec 11, 2015
291
Hunter 25 Plymouth
Dear Fellow Sailors,

I purchased a new-to-me boat that was Coast Guard registered and was then transferred to my name as CG reg. Do I need to state register the craft (Massachusetts - I’ve never had a CG reg boat before)? What is the reason and purpose of such a classification?

Your help appreciated!
Mark
 
Jan 1, 2006
7,074
Slickcraft 26 Sailfish
Yeah I think you have to have a state registration. I believe the USCG registration you mention is documentation which is different than registration. Whatever the difference, the state's want their sales tax money and in some states the usage tax.
 
Jan 11, 2014
11,423
Sabre 362 113 Fair Haven, NY
Yes, most states require state registration. So long as the boat is documented it can not show the state registration numbers, but must show the sticker showing that the boat is state registered.

The USCG documentation has a long history stemming from the country's earliest days. It was a registration of all boats that could be pressed in to service during a national emergency to transport goods and people (military). For recreational boats it now serves as method to title boats and track ownership. Banks often require documentation in order to secure a loan.

You do not need to continue the documentation but you will need to register the boat in the state in which it is used most.

So, what did you buy?
 
Jul 12, 2011
1,165
Leopard 40 Jupiter, Florida
As noted, plus $130 for a 5 year renewal, plus the pain of dealing with a US Gov application page every five years. You still need to pay for state registration if the boat stays in whatever state waters for more than a few months. Like all law enforcement, part of the job of game wardens, county officials, city marine police, etc. is to check that you paid your legal fees to the state.

National Vessel Documentation FAQ: National Vessel Documentation Center - FAQ

BoatUS FAQ: U.S. Coast Guard Vessel Documentation FAQs

Mass state boating law: Massachusetts law about recreational boating
 
May 10, 2004
180
Catalina 30 Puget Sound
Once a documented boat is sold, the documentation is no longer valid. You have to redocument under your name if you choose that course. When you register with the state to get a title, you will need a photo of the Vin number located on the stern of your vessel.
 
Oct 26, 2010
1,904
Hunter 40.5 Beaufort, SC
Yeah I think you have to have a state registration. I believe the USCG registration you mention is documentation which is different than registration. Whatever the difference, the state's want their sales tax money and in some states the usage tax.
This is state dependent. MA may require it but not all states do. A documented vessel in South Carolina is not required to be registered or title with the state. You still pay the sales tax and for SC, an annual property tax, but it is not tied to SC registration. I think they get the info on your boat from the USCG documentation records which I believe the state has access to.

Link to SC SC Department of Natural Resources
 
Feb 10, 2004
3,942
Hunter 40.5 Warwick, RI
Unless the Massachusetts rules have changed in the last 25 years, a documentated vessel in MA is not required to be registered with the state. However if the vessel is kept in MA or the owner (or corporation) lives in MA the sales tax must be paid. I am not sure about the yearly usage fee.
 
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Feb 21, 2013
4,638
Hunter 46 Point Richmond, CA
In Massachusetts, boats are exempt from state registration IF documented with the U.S. Coast Guard Boat Registration FAQs | Mass.gov. However, you can title/register it with the state vs. having it documented with the USCG.

Reasons for documenting a boat with the USCG:
1. Plan to sail your boat in international waters.
2. You do not want to display state registration numbers and stickers.
3. You like the prestige of displaying the boat name and hailing port on your sailboat.
4. You like the USCG document vs. a state title.
5. You can obtain the past history of the sailboat's owners who documented the boat with the USCG by requesting an "abstract". That is what I did on a recent boat purchase.
 
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Tom J

.
Sep 30, 2008
2,305
Catalina 310 Quincy, MA
Unless the Massachusetts rules have changed in the last 25 years, a documentated vessel in MA is not required to be registered with the state. However if the vessel is kept in MA or the owner (or corporation) lives in MA the sales tax must be paid. I am not sure about the yearly usage fee.
The yearly usage fee is called the excise tax. Each vessel berthed in MA is charged a fee, which is assessed and collected by the town the vessel is berthed in. I am not a MA resident, but must pay the excise tax. This is the same tax levied on a vehicle garaged in MA, which I pay also.
I bought my boat in FL, and paid the sales tax there, but was not required to pay it again in MA. I had to register the boat in FL, even though the boat is documented. MA does not require a state registration of documented vessels, as you said.
 
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Dec 11, 2015
291
Hunter 25 Plymouth
Yes, most states require state registration. So long as the boat is documented it can not show the state registration numbers, but must show the sticker showing that the boat is state registered.

The USCG documentation has a long history stemming from the country's earliest days. It was a registration of all boats that could be pressed in to service during a national emergency to transport goods and people (military). For recreational boats it now serves as method to title boats and track ownership. Banks often require documentation in order to secure a loan.

You do not need to continue the documentation but you will need to register the boat in the state in which it is used most.

So, what did you buy?
Irwin 28
 
Dec 11, 2015
291
Hunter 25 Plymouth
The yearly usage fee is called the excise tax. Each vessel berthed in MA is charged a fee, which is assessed and collected by the town the vessel is berthed in. I am not a MA resident, but must pay the excise tax. This is the same tax levied on a vehicle garaged in MA, which I pay also.
I bought my boat in FL, and paid the sales tax there, but was not required to pay it again in MA. I had to register the boat in FL, even though the boat is documented. MA does not require a state registration of documented vessels, as you said.
Thank you
 
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Apr 11, 2010
947
Hunter 38 Whitehall MI
In Massachusetts, boats are exempt from state registration IF documented with the U.S. Coast Guard Boat Registration FAQs | Mass.gov. However, you can title/register it with the state vs. having it documented with the USCG.

Reasons for documenting a boat with the USCG:
1. Plan to sail your boat in international waters.
2. You do not want to display state registration numbers and stickers.
3. You like the prestige of displaying the boat name and hailing port on your sailboat.
4. You like the USCG document vs. a state title.
5. You can obtain the past history of the sailboat's owners who documented the boat with the USCG by requesting an "abstract". That is what I did on a recent boat purchase.
another reason to add - the bank you financed it through requires it.
 
Jan 11, 2014
11,423
Sabre 362 113 Fair Haven, NY
another reason to add - the bank you financed it through requires it.
Never seen that.
On low value loans a bank may not require documentation. Also, boats have to be of a certain size (5 Net Tons) to qualify for documentation. A yacht policy is also called a Preferred Ship's Mortgage and grants the mortgagor certain rights to the vessel.
 
Jan 24, 2017
666
Hunter 34 Toms River Nj
as Sail sfbay had indicated reasons for coast guard documentation of a vessel is also another agency that can track the vessel. For example vessels in Florida often travel to the Caribbean and are often reported to have been stolen. Documented vessels can be investigated and boarded under routine safety inspection. This could increase the chance of getting your vessels back. Although sailboats are less likely than powerboats to be stolen for obvious reasons. A friend of mine got his boat back with in a day or two of it being stolen in the Florida keys from a coast guard inspection that the perpetrator was unable to provide documents.
 
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NYSail

.
Jan 6, 2006
3,064
Beneteau 423 Mt. Sinai, NY
Here in NY as well as in most (all) states as has been said you have to register the boat, however in New York if you are documented you do not have to put your state registration sticker on the boat..... just have it in your boat papers on board and be able to produce if requested.

Greg
 
Oct 26, 2010
1,904
Hunter 40.5 Beaufort, SC
I would not go so far as to say "as in most (all) states you have to register. I've seen several responses, including SC where you do not have to state register a USCG Documented vessel.
 
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Jan 30, 2012
1,123
Nor'Sea 27 "Kiwanda" Portland/ Anacortes
I would not go so far as to say "as in most (all) states you have to register. I've seen several responses, including SC where you do not have to state register a USCG Documented vessel.
Right. In those cases where states require separate state registration of (USCG) documented vessels you will find that every one of them - have a sales tax thus to confiscate money from their own citizen boat owners and a use tax so as to confiscate money from non-citizen boat owners (if the non-resident owned boat is present for a specific number of days/months in that state.) In addition to those taxes - these states also require an additional annual registration fee too - an excise tax. Moreover - also in many of these states - local jurisdictions impose an annual personal property tax which is assessed just for the privilege of owning a boat if you happen to be in a particular municipal area on a particular day.

Alas (for me anyhow) - the world is organized such that one must pay, pay, pay. Us boat owners are easy targets. Still one wonders - what do we get in exchange?

Charles
 
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Oct 26, 2010
1,904
Hunter 40.5 Beaufort, SC
@Charles Erwin Here is SC, there is a sales tax, but it is capped at $600 for cars and boats and then there is the once per year "property tax" which is based on some assumed value (not sure where it comes from) that is well below the value of the boat, so it is pretty cheap. The property tax is "tax deductible" since it qualifies as a second home, so Uncle Sam pays 20% or so of that tax. That's it, so I consider myself lucky. I don't know if they tag on a "non-resident, you stay here you pay" kind of tax like Florida or some Maryland but I don't have to pay that as a resident.
 
Jan 11, 2014
11,423
Sabre 362 113 Fair Haven, NY
Here in NY as well as in most (all) states as has been said you have to register the boat, however in New York if you are documented you do not have to put your state registration sticker on the boat..... just have it in your boat papers on board and be able to produce if requested.

Greg
This is not a state by state issue, a boat that is documented may not show a state registration number per the federal regulations. A documented boat must show its name and hailing port.