CA Yearly boat tax question...

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Levin

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Apr 7, 2007
163
Hunter 340 San Diego
Hello everyone... Ok I have a quick question in regards to the yearly CA tax on boats and other vehicles. I have a Hunter 340 which is registered with the Coast Guard but which I bought in CA and paid sales tax on in CA. Now as far as I know I never registered the boat in CA, and I do not have one of those CA registration stickers on my boat, but recently I received a notice from the state that I have to pay a yearly tax on my boat (in my case around $700). I'm not intending to pay this tax if I don't have to and as I'm not a California resident (I'm military with a home of record elsewhere) does anyone know if just because my boat is here in CA that I must pay the tax? Do you even need a 34' sailboat to be registered with a state or can you get away with just the Coast Guard registration? Oh and one more thing... the hailing port on my boat is Coronado CA, I just picked that because it was the one the old owner had and I didn't want to go through the trouble of changing the lettering... does that mean the boat is subject to CA taxes? Any info from individuals knowledgeable in this area would be greatly appreciated. Thanks -Levin
 

BradG

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Apr 11, 2007
22
- - VA Beach
porbably not

Levin, When I was on AD in Georgia they Ad Valorem (personal property tax) on damn near everything you owned, but AD personnel were exempt, check on the CA DNR or whoever does boat registration to look for your exemption. You usually only need a current LES and they just rip it up. Brad
 

BradG

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Apr 11, 2007
22
- - VA Beach
Registration

ohh and I guarantee that boat needs state registration, either in your home of record state or the state where you dock (again because you are AD you are exempt from having to register it in CA)
 
Jul 12, 2004
285
Catalina 320 chestertown
CA Tax

Tax is paid where you do your boating. As I understand it, if you lived in Colorado, did your boating in California, you'd pay tax in California. If you lived in Ohio and kept your boat in Maryland, you'd pay tax in Maryland. Same with sales tax. You may be able to find some quirk with being in the military. But I doubt it. Good luck.
 
Jun 3, 2004
145
Catalina 27 Stockton CA
From the State of California

Board of Equalization's website (with my parenthetical explanations): Are boats and aircraft subject to property tax? Boats and aircraft are taxable and are subject to annual appraisal. Their values are determined by reviewing sales of comparable boats and airplanes. Information on their locations and ownerships is obtained from the Department of Motor Vehicles, the United States Coast Guard, the Federal Aviation Administration, on-site inspections, and other public and private sources. When taxable personal property is sold subsequent to the lien date (of January 1), it is the duty of the seller to pay the taxes on the property for the ensuing fiscal year. Are California registered vessels owned by California residents still assessable when located outside of California waters? Yes. Until such time as a vessel’s habitual place of mooring has been established elsewhere, a vessel documented in California continues to be taxable in California. That is, if the vessel is not in California, but is traveling from one place to another and has not become permanently situated in one place outside of California, the vessel is still assessable in California. (If the boat is located in California on January 1, you owe property tax on it to the county where it is located for that year. There is apparently no exclusion for active duty personnel.)
 

abe

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Jan 2, 2007
736
- - channel islands
Paul is correct.....

..all loop holes have been closed. Some people I know registered with CG, port in Arizona, and out of state residency......CA says, sorry pay up. I love you guys in the military....that said I wouldn't be surprised the way some of the politicians in CA loath the military that you may have to pay 2X the tax for beeing in the military!!!!! Also, try not read our newspapers...they think anyone who owns a boat is rich and they need to pay their "fair shair". In fact, the LATIMES are going balistic with the temporary suspension of the sales tax (90 vs 360days out of state). Frankly, I do not know if CA gives break to enlisted military. Good Luck, abe
 
Feb 26, 2004
22,987
Catalina 34 224 Maple Bay, BC, Canada
Let's get clear on the tax first

and then go from there. If a boat is documented it does NOT need a CA REGISTRATION sticker. That CA registration costs all of $20 for two years, and is the little square decal they put in front of your REGISTRATION numbers (CF 1234 YZ) which are STATE supplied and required ONLY IF THE BOAT IS NOT DOCUMENTED. Property taxes are something else, and CA is horrible about it, and very persistent. It APPEARS that Levin COULD BE talking about property taxes from the COUNTY (not the state of California) he has his boat floating in, even though he's not physically there. I've reread his post and Levin states :))) that he got a letter from the state. All I'm questioning is if it's county or actually state. Levin, I recommend you help clarify these answers with more specifics about what exactly you mean by "CA tax" and "yearly tax" - thanks. Then perhaps we can reduce the guessing and start the helping.
 
Feb 17, 2006
5,274
Lancer 27PS MCB Camp Pendleton KF6BL
Boats and property tax

Stu is correct about the $20 bi-annual registration fee for non-documented boats. I just paid mine and should get my sticker soon. It will be doubling next year. Property tax I do not pay for my boat, unless it is prorated in the slip fee. I have never received a letter from any state, county, or city government office wanting property tax. However, when I move my boat to my new location in Oceanside, I understand the property tax is no included in the slip fee. So I will have to pay that separately. Now how do they calculate that? I don't know. May be it based on the slip size or the maximum size a boat can fit in that slip regardless of the actual boat size. $700 sounds a little steep unless the previous owner was in arrears. And now they are coming to you because when you purchased the boat, you assumed all debts and liens with that property. I pray that not be the case, else you be screwed. I would recommend you check with your legal officer and see if he/she can research this a little more. Good luck!
 
Feb 26, 2004
22,987
Catalina 34 224 Maple Bay, BC, Canada
I went back and checked my records

and we pay $448 per year for Alameda COUNTY property taxes, nothing included (or "covered") in our slip fee/rental. This is for our Catalina 34. I know of NO "state" tax on boats in California.
 
Feb 26, 2004
22,987
Catalina 34 224 Maple Bay, BC, Canada
Brian, could be

one never knows, but I'm glad Levin asked the question. The remaining thing to do is for him to find out first if he DOES have a property tax to pay to his county of (boat) residence, and then find out if he has any reduced liability because of being in the service. I do think that some specificity in the wording could really help. "Registered with the Coast Guard" isn't proper, it's "documented," but picky picky picky me... :)
 
Jun 8, 2004
2,928
Catalina 320 Dana Point
The property tax on a boat valued ~ $30,000

is less than $300 in Orange County, the property tax on the slip I rent from the county is ~$100. Property Tax based on boat value is assesed by the county tax assesor, normally in a brokerage sale the property taxes in year of sale are prorated between the parties at time of closing. However, in some cases taxes somehow "escape" and generally buyer ends up holding the bag. Check the attached website first with tax bill number or parcel number to see if a tax is owned, then contact Assessor's office with questions. Don't never ignore the tax man when he comes callin'
 
Feb 17, 2006
5,274
Lancer 27PS MCB Camp Pendleton KF6BL
What is the cost to "re" document a boat?

Meaning, if you purchase a documented boat, does one have to re-document the boat under the new owner's name? And if so, is there a fee associated?
 
Jun 2, 2004
3,507
Hunter 23.5 Fort Walton Yacht Club, Florida
Most Places,

Not sure about California you must pay the registration but are not required to pay the personal property tax. Call the JAG office there they handle this stuff and will likley have any forms you need to get out of paying the tax.
 
Sep 25, 2008
7,343
Alden 50 Sarasota, Florida
Transfer doc

Brian D No one can compel you to transfer the documentation to you. If you choose to do so, it will cost between $300 and $400. There are only two reasons for doing this: 1. you require financing and documentation is usually a prerequisite for a loan, or 2. you intend to take the boat out of the U.S. where state registration is meaningless.
 
Aug 18, 2007
28
CNSO Mikado Titusville, FL
It shouldn't have to be so confusing

I think by the number of replys and the different opinions shows exactly how rediculous the boat sales tax, registration, property tax has gotten. I believe that I am correct in saying that there is NO state property tax but there IS County property tax. I learned it the hard way when I purchased a boat in CA, took posession in Int'l waters, registered it in OR where I owned a rental house, had her USCG documented, and kept her Alameda, CA. After a couple of years I sold the boat because I moved to Boise, ID. A few years later I refinanced my house and I had three negative credit property tax liens on my credit report. I called Alameda County explaining that I never lived there and they informed me it was my boat. Apparently the Marina's report to the County every boat that has a slip there on January 1st along with the owners information. I paid for my ignorance of the law for the next 7 years!! As to the question about USCG re-documention, as long as the previous documentation hasn't been expired too long (I think quite a few years) it can be re-documented for about $50 which is good for several years. With a little patience you can find the info on USCG.mil Good luck, Jeff
 
K

Karl

property taxes

I bought a documented vessel just a few years ago. The person that sold the boat to me was in the Navy, and when I asked about the California property tax, he let me know that out of state military were exempt from the annual property tax. He had to sign an that he was a resident of another state, and list the hailing port from that state. There is also a possesory property tax. If your marina is is run by a public entity, this tax is assessed on the value of the public land that you are using. If you use a marina run by a private company, they pay the tax and charge it in the rate for the slip.
 

abe

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Jan 2, 2007
736
- - channel islands
It is a county tax......but the rates are ....

dictated by a state wide initiative so called proposition 13 and it is 1% yearly based on the assessed value of the property. This tax is assessed and paid to the county. In addition, when you get your bill it is a consolidated tax and that bill adds on a city tax, education tax, water distric tax.....sooooooo it ends up as +/- 1.05% tax. The State of California makes its money from sales tax and personal income tax. Finally, when you also purchase your boat there is a 7.25-8.5 % sales tax, rate depends on which county you live. The only way to avoid that is to take possession of the boat 3miles of the coast and take it to another country for 12 months (temporarily the 12 months have reverted back to 3 months I believe as a result of the slowing economy). Bottom line, all this talk is b.s......all I know is that I have to pay the tax to the government. I read the back of the originial sales slip and there may be some exemptions for active veterans, and military but not clear the amount for the exemption. abe
 

Levin

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Apr 7, 2007
163
Hunter 340 San Diego
A little less confused

Hello everyone... Yes it is a county tax and not a state tax... but I'm still unsure if I get excepted because I'm in the military (I guess I will just have to talk to the assessor about that one). Anyway thanks for all the replies. Seems a bit steep to have to pay $700 a year for something I already paid nearly $7000 in sales tax on just to purchase. Yet all us boaters have tons of money right? [sigh] Thanks for the help... -Levin
 
Jun 3, 2004
95
A Little More Info

You might want to look at the San Diego County Assessor's website (arcc.co.san-diego.ca.us) and look for their Property Assessment page and then the Marine & Aviation Section. Here it says among other things: If it floats it's assessed for property taxes. State law requires that boats will be assessed on January 1, starting 1997 and for each year thereafter, at the site where they are regularly or routinely located. All boats regularly located in San Diego County are assessed here, regardless of where they are registered. Values are established by reviewing sales of comparable boats on an annual basis. The assessor's office receives registration and documentation information on boats from the Department of Motor Vehicles and the United States Coast Guard. Having at one time worked for the San Diego County Tax Collector I know the annual tax generally runs about 1% of the boat's value. From previously working with people in the Marine & Aviation Section I know that annually around January 1st their personnel personally walk every dock and marina in San Diego county and record every boat they observe. Their inspections also includes boat dry storage locations. Gregory Smith, the San Diego County Assessor, insists that his employees be helpful to the public so I suggest you phone the Marine and Aviation Section (858-505-6200) as they will answer all your questions, including whether you are exempt from paying boat property taxes since you are on AD. This can be done without identifying yourself or your boat so don't be afraid to call. As a point of interest I am aware of a previous San Diego elderly boat owner who was contacted by the SD County Tax Collector when he failed to pay his annual boat tax bill. The owner explained his boat had been destroyed about six years earlier but he had never informed DMV or the County Assessor and continued to pay the boat taxes as a loyal taxpayer even though he no longer had the boat. He was instructed on how to submit a claim to the County and was refunded the five years of boat taxes he had mistakenly paid. Just a short story to illistrate that the tax man is not always the bad guy he is often portrayed.
 
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