CA Yearly boat tax question...
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Tax In CA.
Just a question ,do you pay a sales tax when you first purchase the boat in CA and than annual yearly tax is that the way it works. NY has a tax for pretty much everything. Nick
Just a question ,do you pay a sales tax when you first purchase the boat in CA and than annual yearly tax is that the way it works. NY has a tax for pretty much everything. Nick
Taxed Three Ways!
Seadaddle, the government here in California are really good about figuring out how to tax more. They have figured out a way to tax us boaters three ways! How lucky can you get! When you buy a boat in California and take delivery in the State, you pay a sales tax. The sales tax depends on where you take delivery, but it is between 7.75% to 8.25%. It is a state sales tax of 7.75%, but local counties can add up to an additional 0.5% of their own on top of the State minimum. This tax is the same as tax you pay here whenever you buy something in California. Next is the annual county-assessed property tax. This tax is assessd on property such as boats, airplanes, and cars. Our Department of Motor Vehicles collects the tax on cars, the local County Tax Assessor collects on boats and airplanes. This tax depends on the county rate, with a maximum rate of 1% of the book value plus any voted local special assessments. And it makes no difference if your boat is State registered or documented. Lastly, and the one I find the most amazing, the State of California taxes any use of State-owned property. Here in California, all beaches and adjacent water is owned by the State. When you lease or rent public property, you pay a possessory tax. So if you have your boat in a slip in a marina , and that marina is a private company, they pay the tax and pass it along in your slip fees. If you have a slip in a marina, and the marina is run by the local county or city, the State sends you a tax bill. This is because the State of California can't tax a local government entity, so you have the honor and fun of paying the possessory tax directly. So much tax, so little time!
Seadaddle, the government here in California are really good about figuring out how to tax more. They have figured out a way to tax us boaters three ways! How lucky can you get! When you buy a boat in California and take delivery in the State, you pay a sales tax. The sales tax depends on where you take delivery, but it is between 7.75% to 8.25%. It is a state sales tax of 7.75%, but local counties can add up to an additional 0.5% of their own on top of the State minimum. This tax is the same as tax you pay here whenever you buy something in California. Next is the annual county-assessed property tax. This tax is assessd on property such as boats, airplanes, and cars. Our Department of Motor Vehicles collects the tax on cars, the local County Tax Assessor collects on boats and airplanes. This tax depends on the county rate, with a maximum rate of 1% of the book value plus any voted local special assessments. And it makes no difference if your boat is State registered or documented. Lastly, and the one I find the most amazing, the State of California taxes any use of State-owned property. Here in California, all beaches and adjacent water is owned by the State. When you lease or rent public property, you pay a possessory tax. So if you have your boat in a slip in a marina , and that marina is a private company, they pay the tax and pass it along in your slip fees. If you have a slip in a marina, and the marina is run by the local county or city, the State sends you a tax bill. This is because the State of California can't tax a local government entity, so you have the honor and fun of paying the possessory tax directly. So much tax, so little time!
Documentation
Brian... You would have to document it under your name... or let documentation run out. If you let the previous documentation expire... it will cost a lot more to document the boat next time. $125 seams about right... however Boat U.S. will do it for $350... I guess they are looking out for us... both coming and going. Here in Maine we have to register our boats (sticker) for a nominal fee (in addition to documentation). I think our Govenor will be requiring us to purchase mill-foil stickers too... even though our boat is in salt water. I think Levin is getting hit with a property tax. Some towns enforce them... some don't. You can't win. Its not a tax... it is a user fee.
Brian... You would have to document it under your name... or let documentation run out. If you let the previous documentation expire... it will cost a lot more to document the boat next time. $125 seams about right... however Boat U.S. will do it for $350... I guess they are looking out for us... both coming and going. Here in Maine we have to register our boats (sticker) for a nominal fee (in addition to documentation). I think our Govenor will be requiring us to purchase mill-foil stickers too... even though our boat is in salt water. I think Levin is getting hit with a property tax. Some towns enforce them... some don't. You can't win. Its not a tax... it is a user fee.
re-document
You can re-document a boat yourself in about 25 minutes. All the forms you need are on the CG web site and they can be filled out online, printed out and sent in. It will cost $84 to re-document the boat in your name (assuming the boat was not removed from documentation which is not the same thing as the documentation expiring). In addition there is an $8 per page charge for the required federal bill of sale which transfer ownership form the previous owner to you. So your total cost is $92.00. Documentation expires every year. The CG sends you a notice, you send it back and they send you a new document. No additional cost.
You can re-document a boat yourself in about 25 minutes. All the forms you need are on the CG web site and they can be filled out online, printed out and sent in. It will cost $84 to re-document the boat in your name (assuming the boat was not removed from documentation which is not the same thing as the documentation expiring). In addition there is an $8 per page charge for the required federal bill of sale which transfer ownership form the previous owner to you. So your total cost is $92.00. Documentation expires every year. The CG sends you a notice, you send it back and they send you a new document. No additional cost.
And the best thing of all in CA.....
...after we pay all the taxes that Karl said, California politicians and the LATIMES thinks that we the boat owners are "rich" and need to pay our "fair share". And where does all that money go? Well I will let you figure it out before they bump me into the political section...lets just say I rather pay a little more for my fruits in vegestables and pay less in taxes. abe
...after we pay all the taxes that Karl said, California politicians and the LATIMES thinks that we the boat owners are "rich" and need to pay our "fair share". And where does all that money go? Well I will let you figure it out before they bump me into the political section...lets just say I rather pay a little more for my fruits in vegestables and pay less in taxes. abe
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