Does anyone have any info on registering a boat in R.I. to take advantage of Rhode Islands tax exemption on boats?? What docs are needed? What proof is required? (FYI- will be getting trailerable 26ft boat this spring). Thanks for your help, Joyce
- Status
- Not open for further replies.
R
Rich Stidger
I am in Westerly
Joyce, I keep my sailboat in Westerly, RI on a mooring. My boat is documentated and RI wants it to also be registered in the state. There is a yearly fee to be paid and if I could find my RI handbook I could tell you the amount for a 26' boat. Guessing from memory it is under $100. In RI you will pay no sales tax on the purchase of your boat. Also, there is no tax on moorings and I don't think there is tax on winter storage either. I know that you do pay sales tax on boating supplies. If you live in NY or another state that does charge sales tax on the purchase price, you will owe that state the sales tax on the full purchase price just because you live in that state. This is true even if you never bring the boat to your home state. You only beat the sale tax if you live in RI. There is one exception. If you take delivery of the boat in RI and if you set up a corporation in a tax-friendly state like Delaware, so that the corporation owns the boat instead of you, then you can beat the tax. You have to also either register the boat in Delaware or have it documentated. A 26' boat is probably too small to be documentated, but that is just a guess. The down side of this is that you can't bring the boat into your state for longer than the transient time allowance without legally owing your state the tax. Nor can you take the boat into any other tax-hungry state without the same consequence. Also there are fees associated with incorporation. In Delaware the initial cost is about $300 and the yearly fees are about $125 per year. I would recommend that you are probably better off just paying the tax. Now if you were buying a $200K+ boat, the story could be much different..... Good Luck Rich
Joyce, I keep my sailboat in Westerly, RI on a mooring. My boat is documentated and RI wants it to also be registered in the state. There is a yearly fee to be paid and if I could find my RI handbook I could tell you the amount for a 26' boat. Guessing from memory it is under $100. In RI you will pay no sales tax on the purchase of your boat. Also, there is no tax on moorings and I don't think there is tax on winter storage either. I know that you do pay sales tax on boating supplies. If you live in NY or another state that does charge sales tax on the purchase price, you will owe that state the sales tax on the full purchase price just because you live in that state. This is true even if you never bring the boat to your home state. You only beat the sale tax if you live in RI. There is one exception. If you take delivery of the boat in RI and if you set up a corporation in a tax-friendly state like Delaware, so that the corporation owns the boat instead of you, then you can beat the tax. You have to also either register the boat in Delaware or have it documentated. A 26' boat is probably too small to be documentated, but that is just a guess. The down side of this is that you can't bring the boat into your state for longer than the transient time allowance without legally owing your state the tax. Nor can you take the boat into any other tax-hungry state without the same consequence. Also there are fees associated with incorporation. In Delaware the initial cost is about $300 and the yearly fees are about $125 per year. I would recommend that you are probably better off just paying the tax. Now if you were buying a $200K+ boat, the story could be much different..... Good Luck Rich
J
JT
RI registration
I have an OD 23 that I bought in MA from a private party and registered in RI. I think the fee was $75 for two years. The outboard also had to be registered. I did not pay sales tax in RI or MA. I did register the trailer in MA. Standard documentation required (title, bill of sale, etc). Folks at the registration office in RI were very helpfull.
I have an OD 23 that I bought in MA from a private party and registered in RI. I think the fee was $75 for two years. The outboard also had to be registered. I did not pay sales tax in RI or MA. I did register the trailer in MA. Standard documentation required (title, bill of sale, etc). Folks at the registration office in RI were very helpfull.
P
Paul Akers
Registration
I just renewed the registration on my L37. The cost for a RI "documentation" registration for that boat was $250 for 2 years. Smaller boats are cheaper/prorated. A "documentation" registration is a registration for documented vessels and is required by the state. There are no external numbers, only a sticker with the expiration date on it.
I just renewed the registration on my L37. The cost for a RI "documentation" registration for that boat was $250 for 2 years. Smaller boats are cheaper/prorated. A "documentation" registration is a registration for documented vessels and is required by the state. There are no external numbers, only a sticker with the expiration date on it.
J
joycefl6
paul-re registration
Paul- you live in R.I. When we buy a new boat and have it registered in R.I., do you know what/how we would need to do so?? Your state exempts sales tax on marine products. Do you know if a lot of people come to R.I. to register their boat?
Paul- you live in R.I. When we buy a new boat and have it registered in R.I., do you know what/how we would need to do so?? Your state exempts sales tax on marine products. Do you know if a lot of people come to R.I. to register their boat?
J
John Visser
Massachusetts rules, FYI
source: http://www.state.ma.us/dfwele/dle/dlefaqs.htm#Require Am I required to register my boat? State law requires the registration of any boat that is powered by a motor and operated on public waterways in Massachusetts. Registration is required even if the motor is not the primary means of propulsion for that boat. Some examples of boats that require registration include fishing boats with motors, recreational motorboats, canoes or sailboats that use motors, and personal watercraft such as Jet Skis or wet bikes. Boats exempt from registration requirements include those that do not use motors, boats used exclusively on private lakes smaller than 10 acres, and documented vessels (large boats that are issued a marine document and registration through the U.S. Coast Guard). Vessels used solely by a city, county, state, or federal agency will be issued a certificate of registration and number at no charge.
source: http://www.state.ma.us/dfwele/dle/dlefaqs.htm#Require Am I required to register my boat? State law requires the registration of any boat that is powered by a motor and operated on public waterways in Massachusetts. Registration is required even if the motor is not the primary means of propulsion for that boat. Some examples of boats that require registration include fishing boats with motors, recreational motorboats, canoes or sailboats that use motors, and personal watercraft such as Jet Skis or wet bikes. Boats exempt from registration requirements include those that do not use motors, boats used exclusively on private lakes smaller than 10 acres, and documented vessels (large boats that are issued a marine document and registration through the U.S. Coast Guard). Vessels used solely by a city, county, state, or federal agency will be issued a certificate of registration and number at no charge.
P
Paul Akers
Joyce.
In RI, sales tax is exempt on the purchase of a new or used boat that is stored in RI. Marine products are taxable unless they are part of the ORIGINAL deal. For example, if you buy a radar off the shelf, you will pay sals tax on it. If you buy it at the same time as the boat (all on the same invoice), it will be exempt. Walk into West Marine and you will pay state sales tax. If you buy a used boat in RI and keep it stored there, you will be exempt. If you buy it and move it to another state, you will be subject to that state's tax rules. I may not be 100 pct accurate here, so I would recommend calling the RI Dept. of Environmental Mgt or the Dept. of Taxation in RI for an "official" explanation. A little bit of homework is necessary here.
In RI, sales tax is exempt on the purchase of a new or used boat that is stored in RI. Marine products are taxable unless they are part of the ORIGINAL deal. For example, if you buy a radar off the shelf, you will pay sals tax on it. If you buy it at the same time as the boat (all on the same invoice), it will be exempt. Walk into West Marine and you will pay state sales tax. If you buy a used boat in RI and keep it stored there, you will be exempt. If you buy it and move it to another state, you will be subject to that state's tax rules. I may not be 100 pct accurate here, so I would recommend calling the RI Dept. of Environmental Mgt or the Dept. of Taxation in RI for an "official" explanation. A little bit of homework is necessary here.
J
joycefl6
Rich- you really know your stuff
Thanks so much for input... How do you know so much about this?? you hit the nail on the head with the info we need.. Can we contact you again for further clarification?? thanks again, Joyce
Thanks so much for input... How do you know so much about this?? you hit the nail on the head with the info we need.. Can we contact you again for further clarification?? thanks again, Joyce
R
Rich Stidger
Sure, email me
Joyce, Just email me for additional info. I am in the Hunter owners directory. Rich
Joyce, Just email me for additional info. I am in the Hunter owners directory. Rich
S
Stanley J. Rogacevicz
Rhode Island Department of Environmental Managment
They have a good web site with a lot of info at http://www.state.ri.us/dem/ Stan "Christy Leigh" c320 #656
They have a good web site with a lot of info at http://www.state.ri.us/dem/ Stan "Christy Leigh" c320 #656
- Status
- Not open for further replies.