I'm thinking of buying an offshore cruiser in the US could anyone give me the low down on legalities, reg, insurance, etc. Thanks Lance
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Lance this is the US
you can do whatever you want! If you pay cash or check you don't need insurance. All you have to do is pay the state the sale tax and if you live in Delawere you don't even have to pay that!
you can do whatever you want! If you pay cash or check you don't need insurance. All you have to do is pay the state the sale tax and if you live in Delawere you don't even have to pay that!
How's that Lance? We invented this stuff,
'Free', that is.
Only thing is, it's getting less free all the time.
'Free', that is.
Only thing is, it's getting less free all the time.No boat sales tax in RI as well .... as far
as I can tell no one asks if you are a US citizen to buy insurance. Vic "Seven"
as I can tell no one asks if you are a US citizen to buy insurance. Vic "Seven"
documentation
If you're going to mortgage the boat, US banks all require the boat to go through USCG documentation, and only USA citizens, or corporations owned by USA citizens, are entitled to document their yachts in this country.
If you're going to mortgage the boat, US banks all require the boat to go through USCG documentation, and only USA citizens, or corporations owned by USA citizens, are entitled to document their yachts in this country.
John, it sounds like Lance might have some of
that 'old money' we in the US hear about. Sounds like his question is asking, 'how do I go about spending my pounds'? Well Lance, step right over here,,,
that 'old money' we in the US hear about. Sounds like his question is asking, 'how do I go about spending my pounds'? Well Lance, step right over here,,,
Not all banks require USCG docs.
John: Unless things have changed, not all financial institutions require or want USCG documenation. I realize it has been a long time since I financed my boat, but FIB (now Wells Fargo) demanded that the boat have a California DMV title (documentation was NOT an option). Of course then Lance needs to find out what the queen has waiting for him when he returns to his shores.
John: Unless things have changed, not all financial institutions require or want USCG documenation. I realize it has been a long time since I financed my boat, but FIB (now Wells Fargo) demanded that the boat have a California DMV title (documentation was NOT an option). Of course then Lance needs to find out what the queen has waiting for him when he returns to his shores.
Yes but
If you are going to the states and paying cash up front and taking her staight home I'm not sure that you have to pay any US taxes. However if you are like me you might concider registering the yacht in the US for if I bring one home I have to pay GST on the purchase plus variouse other small taxes. So leaving it registered in the states and sailing her 250 miles of shore once a year gets around Johny Howards taxes!
If you are going to the states and paying cash up front and taking her staight home I'm not sure that you have to pay any US taxes. However if you are like me you might concider registering the yacht in the US for if I bring one home I have to pay GST on the purchase plus variouse other small taxes. So leaving it registered in the states and sailing her 250 miles of shore once a year gets around Johny Howards taxes!
Oh oh, We don't want to tell him how to beat taxes
do we? We're suppose to be willing and forthright in giving our money to the government.
do we?
We're suppose to be willing and forthright in giving our money to the government.Mark has a point
If I but something substantial in the EU (european union) I might have to pay a VAT (Value Added Tax) up front but I am refunded that tax from the European Country I bought that item (I know it sounds far fetched, but it works I bought some artwork in italy, paid some tax and low and behold I got a check for the tax a few months later). Knowing the way things work between the UK and the US we might have some reciprocal tax previledges between our 2 countries. But I'd check first and probably purchase the boat in Delaware or RI (no tax up front?) first. But knowing the UK you'd probably be responsible for even bigger property taxes back home
If I but something substantial in the EU (european union) I might have to pay a VAT (Value Added Tax) up front but I am refunded that tax from the European Country I bought that item (I know it sounds far fetched, but it works I bought some artwork in italy, paid some tax and low and behold I got a check for the tax a few months later). Knowing the way things work between the UK and the US we might have some reciprocal tax previledges between our 2 countries. But I'd check first and probably purchase the boat in Delaware or RI (no tax up front?) first. But knowing the UK you'd probably be responsible for even bigger property taxes back home
Lance, I think this is your 'list'...
...altho' unique personal circumstances will shape the details: 1. Sales or use tax on the purchase price of the boat (new or used) is determined by where the sale is executed (not necessarily where the boat is being shown and for sale); speak with the broker (if one is involved in the sale) and the tax authority (usually, a county tax collector vs. city or state authority) where you hope to conclude the sale. 2. States will usually (not always) allow you a 'grace period' in which to commission the boat and leave state waters, which eliminates tax liability in that state even if tax is usually assessed; again, check with local tax authority and broker (the latter will know all these ins & outs, as you would suspect) 3. Insurance is at your option unless a lender forces requirements on you; doesn't sound like that applies to you. 4. Passage thru subsequent states without liability for Use Tax is allowed but within restrictions established by each state; if you are e.g. headed south towards the islands before sailing back to the UK, you will usually find local authorities accepting of your presence for limited periods of time should you be passing south thru the Intracoastal Waterway. 5. Your bill of sale will be your only legal document during this time, unless you choose to register the boat in a U.S. state or are eligible to federally document it (don't know if you carry multiple passports or not). 6. On arrival back in the UK you will owe VAT of 17.5% on the assessed value (not necessarily what you paid for the boat); if ownership was held by a non-EU citizen, you could request Temporary Importation (good for 18 mos. of VAT-free status) or full Transfer of Residence relief using a C104A from HM Customs. In the latter case, you'd end up with the equivalent of a VAT-paid boat without paying any tax, and that status would transfer to any subsequent (EU citizen) owner. Europeans - and especially Brits - find boat purchases in the U.S. to be a bargain when compared to options back home, and seek to 'rent' their purchase for some time, enjoy cruising, return home and resell the boat in a VAT-free zone for perhaps a small profit. As the EU expands, VAT-free zones shrink (e.g. Malta and the non-EU portion of Cyprus both formally join the EU May 1st) and this becomes a bit tougher to do - altho' there's always Gib, the Channel Is. and comfortably-slack Spain. Jack
...altho' unique personal circumstances will shape the details: 1. Sales or use tax on the purchase price of the boat (new or used) is determined by where the sale is executed (not necessarily where the boat is being shown and for sale); speak with the broker (if one is involved in the sale) and the tax authority (usually, a county tax collector vs. city or state authority) where you hope to conclude the sale. 2. States will usually (not always) allow you a 'grace period' in which to commission the boat and leave state waters, which eliminates tax liability in that state even if tax is usually assessed; again, check with local tax authority and broker (the latter will know all these ins & outs, as you would suspect) 3. Insurance is at your option unless a lender forces requirements on you; doesn't sound like that applies to you. 4. Passage thru subsequent states without liability for Use Tax is allowed but within restrictions established by each state; if you are e.g. headed south towards the islands before sailing back to the UK, you will usually find local authorities accepting of your presence for limited periods of time should you be passing south thru the Intracoastal Waterway. 5. Your bill of sale will be your only legal document during this time, unless you choose to register the boat in a U.S. state or are eligible to federally document it (don't know if you carry multiple passports or not). 6. On arrival back in the UK you will owe VAT of 17.5% on the assessed value (not necessarily what you paid for the boat); if ownership was held by a non-EU citizen, you could request Temporary Importation (good for 18 mos. of VAT-free status) or full Transfer of Residence relief using a C104A from HM Customs. In the latter case, you'd end up with the equivalent of a VAT-paid boat without paying any tax, and that status would transfer to any subsequent (EU citizen) owner. Europeans - and especially Brits - find boat purchases in the U.S. to be a bargain when compared to options back home, and seek to 'rent' their purchase for some time, enjoy cruising, return home and resell the boat in a VAT-free zone for perhaps a small profit. As the EU expands, VAT-free zones shrink (e.g. Malta and the non-EU portion of Cyprus both formally join the EU May 1st) and this becomes a bit tougher to do - altho' there's always Gib, the Channel Is. and comfortably-slack Spain. Jack
Jack, you do have that post saved in your
'drafts' directory, don't you? That is valuable information. Impressive.
'drafts' directory, don't you? That is valuable information. Impressive.
Use a Marine Title Company
Lance, particularly in your case where you would be from outside the country, I would recommend the services of a Marine Title Company to ensure all the paperwork is in order and that the vessel has clear title. Marine Title Company: The company should check for liens or other encumberances against the vessel. Even though you might get a "title" there may be other claims that would cloud the title. It shouldn't cost that much and you could sail off knowing you, in fact, own her 100%. Reference: http://www.americanvessel.com/ State Regulations: Each state has documentation requirements which can be checked on the internet from home. For Washington (that's BIG Washington vs. little Washington, D.C.) the url is http://www.leg.wa.gov/wac/index.cfm?fuseaction=chapterdigest&chapter=308-93 A simple Q&A url is http://www.leg.wa.gov/wac/index.cfm?fuseaction=Section&Section=308-93-276 "wac" in the url stands for "WAC" which means Washington Administrative Code. Each state will have a site similar to this for their code but called slightly different. I would think the Marine Title Company would help tremendously in this area to ensure the paperwork is in order. Electronics that transmit a signal: This will be another area of paperwork different from marine title. You'd have to license all transmitting electronics (VHF or SSB radio, depth sounder, radar, etc.). Something else to consider but this would probably be licensed in Great Britain??
Lance, particularly in your case where you would be from outside the country, I would recommend the services of a Marine Title Company to ensure all the paperwork is in order and that the vessel has clear title. Marine Title Company: The company should check for liens or other encumberances against the vessel. Even though you might get a "title" there may be other claims that would cloud the title. It shouldn't cost that much and you could sail off knowing you, in fact, own her 100%. Reference: http://www.americanvessel.com/ State Regulations: Each state has documentation requirements which can be checked on the internet from home. For Washington (that's BIG Washington vs. little Washington, D.C.) the url is http://www.leg.wa.gov/wac/index.cfm?fuseaction=chapterdigest&chapter=308-93 A simple Q&A url is http://www.leg.wa.gov/wac/index.cfm?fuseaction=Section&Section=308-93-276 "wac" in the url stands for "WAC" which means Washington Administrative Code. Each state will have a site similar to this for their code but called slightly different. I would think the Marine Title Company would help tremendously in this area to ensure the paperwork is in order. Electronics that transmit a signal: This will be another area of paperwork different from marine title. You'd have to license all transmitting electronics (VHF or SSB radio, depth sounder, radar, etc.). Something else to consider but this would probably be licensed in Great Britain??
Americans Very Trustworthy
Americans are very trustworthy. Therefore find whatever boat you decide you would like and then just pay the asking price. In fact, I have a 1975 MacGregor Venture Newport 23 which I would be willing to give away for only $10K.
Americans are very trustworthy. Therefore find whatever boat you decide you would like and then just pay the asking price. In fact, I have a 1975 MacGregor Venture Newport 23 which I would be willing to give away for only $10K.
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