Please help the STATE of MAINE HARBORS DONATE to your Harbormaster and pay your Taxes

[Maine Sail]

The law states: If during the months June 1st to August 31st you dock, anchor, on mooring and do not move/use your vessel for 60 consecutive days you must pay a Excise Tax. OR if your vessel is IN THE STATE of Maine whether in water or land.. your pay the tax.

You can read the law just search:
Maine Title 36: TAXATION
Chapter 112: WATERCRAFT EXCISE TAX

My hall outs is always Aug 15th every year in NH

Then supply the document proof of haul and launch that put you not in the state during the excise taxable season.. Keep in mind this is still a slippery slope because on a public forum you claim Rockport, ME as your home port...

My boat is never on mooring longer then 2 weeks at a time.

If it was in Maine waters in excess time of the law then that does not matter.

My boat travels to other states like Boston, Conn, NY. etc. also into international waters.

Then you should easily have proof of all this as well as the ability to prove that NH is really your "primary mooring place"..

So the only difference here is that the fact I rent a mooring nothing more. That's the fact! and I think the boaters should know the facts.. Don't you?

Lots of folks with out of state boats rent moorings here or have permanent docks, or moorings this does not make them eligible for a tax based on "where the boat was"...

 

[centerline]

The only thing wrong with the situation seems to be your interpetation of what is fair and what is wrong, BASED on what you have gotten away with in the past....

I strongly agree with Maine Sail that ignorance of the law/rules is no reason to be excused or exempted from them.... no matter how rude of an awakening it is when you get caught ignoring them ...

 

[Maine Sail]

Can't a person rent a mooring in Maine to have a place to visit for periods not to exceed the allowed stay? Is there such a law in the books that renting a mooring or slip constitutes an obligation to register a boat or is that a ruse from the taxing authorities to try and get suspected abusers ? The means would not be justified by the end. It should be the location of the boat that triggers any requirement and not the length of the lease or use given to the mooring. If word gets out the economic impact from the loss of visiting boaters will be considerably more than whatever is to be gained by this "Gotcha" scheme.

Yes they absolutely can rent moorings and not be tax liable. The rental of the mooring does not constitute a tax liability but can and does trigger investigations. If investigated it's up to the boat owner to prove his/her vessel was not in the State for more than 75 days in the year. This is part of the reason cruising boats should always keep a log with receipts. Maine is not the only State looking to grab tax revenue...

 

[Maine Sail]

Maine Sail.. I here you, However I presented the facts to the state of Maine agents, and the response was.. well its because you have a mooring. Even though I presented undeniable evidence.. They sided to tax anyway. So sorry Maine Sail.. But in this case.. The facts speak for themselves.

If you have a "real provable case" and actual "undeniable evidence" then a tax attorney would snap it up in a second. I've not heard of "undeniable evidence" being presented and denied and I have dealt with this with a few of my customers.

It is why I had the tax document on my hard drive, because I get asked about it by my "summer folk" customers. For my customer with the 46' boat it was a done deal in one envelope of documentation that he sent to the Caribou IRS office.. The Maine IRS has to follow the law just like everyone else and nowhere in the law, that I know of, does renting a mooring constitute your boat physically being in Maine for 75 days. For lots of cruisers it's cheaper to rent a mooring for the entire season, even when they only vacation here for a month and with suitable proof your vessel was not here they can't impose a tax. My guess is that your "undeniable evidence" perhaps had some holes...?

And let's not forget this all started over what is most likely a fee/tax of approx $59.60 to use the beautiful locale of Rockport, Maine as your home port (Homeport = Rockport, ME your words not ours)..........

 

[Jackdaw]

We live in Minnesota but slip the boat in Wisconsin. We COULD winter it like some of our friends do in Minnnsota, as that is only a day sail away. So is Michigan, and Canada for that matter. We spend time in all these places during the sailing season.

But the simple fact is that the boat is 'in' Wisconsin. Maybe a huge amount of paper games or logistical slight of hand could escape that reality... I probably could but who has the time for that? So we pay the yearly WI state reg, even though the boat is federally documented an registration would be unnecessary in MN. That costs like 50 bucks. It's not worth talking about, much less fighting about.

In any case I'd hardly call that 'declaring WAR on boaters'. That's just hyperbole.

 

[Maine Sail]

Benny your right on target there! If the state and local agents or marina puts you in hams-way to fail in order to impose a tax..

The only person responsible for the tax laws, tax liabilities and understanding them is YOU... A tax CAN NOT be levied on a mooring rental under Maine State law. There is absolutely no provision for it. The tax is on where your vessel is and for how long. It is up to you to prove it was not in Maine for 75 days not the Maine IRS to prove it was. All the mooring rental did is trigger an investigation and even a 10 day consecutive dock or mooring rental can do this...

Does Amazon put folks in harms way in States that impose a sales tax..? Absolutely not, you are still responsible for the tax despite Amazon not charging it for an out of State order. I pay a "use tax" every quarter for out of State purchases. Far better than an audit!!

The Maine IRS will stop at nothing in a worthy investigation ( I don't think yours is a big payday for them however).. This was easily found in seconds doing a simple google search for Stargazer II Rockport, ME... Be careful what you put out there if you are not wanting to be taxed........

"Trip Advisor:

All the food and service is very good. Have visited a few time now and think this is worth stooping for. Still today! on our 6th visit, It's a hidden treasure. Our sailboat the "StarGazer II" is in Rockport, Maine so we must stop to dine and this is where we go! The food is fresh and the fried clam's and seafood is a must have.. You won't be disappointed "I aChef101 guarantee it!

Enjoy!

https://www.tripadvisor.com/ShowUserReviews-g40986-d388077-r161642908-Taste_of_Maine_Restaurant-Woolwich_Maine.html#"

 

[cb32863]

Maybe one of these will help...

 

[Maine Sail]

Jackdraw, Your right 50.00 is not a big issue here and that's not the point. The point here is that the state makes up laws but don't follow them and can, at its own election for any reason impose a tax at will. whether or not its fair or not it doesn't matter.. like Maine Sail stated: The rental of the mooring does not constitute a tax liability but can and does trigger investigations! The final say is uncontested by the state. You can show all the proof you want but, If the state states you pay.. then you pay! However, we don't have to be happy about it and I certainty want boaters to be aware of the Two-Sided-Coin being used to get taxes out of them. Now here a twist for ya! Im in a non taxed state NH.. But I am having my sails maid for me in Maine and pay to have my vessel repairs done by Mainers and pay all taxes too! Wouldn't it make more since to have it done in a non-taxed state like NH? yes it would, but I don't I like the work NH does and it doesn't support Maine. My wife and I decided most of the work will be in Maine.

If your sail maker ships the sails to NH there is no ME 5.5% tax. Perfectly legal and the savings in sales tax vs. shipping would easily pay your excise........

 

[Benny17441]

The object of grace periods granted by most States is not to allow an individual to avoid paying taxes to any by rotating timed stays. If a State believes an individual is utilizing the grace period to circumvent the payment of taxes it is correct in asking for evidence that would prove otherwise. Perhaps showing that taxes are paid in another jurisdiction with documented proof that the boat never exceeded the grace period should have been enough. Obviously in this case they were not convinced and opted to continue collection efforts. This is hardly a situation that merits the accusation that "State of Maine declares war on visiting boaters". Now that the boat has been registered I would think an apology is due for that not so true accusation.

 

[Scott T-Bird]

How does the State of Maine benefit from NOT collecting sales tax on items that were purchased sales tax free in NH? I don't see where Maine is eating cake and ice cream. If anything, NH is eating cake and ice cream by diverting all of that retail business from Maine. NH must have money to survive, I suppose they may collect higher real estate taxes in lieu of the sales tax, or maybe higher income tax, I don't know. But it seems to me that when the retail trade is stronger in NH due to sales tax relief, NH benefits, not Maine, no?

I am still wondering, do you pay registration fees for your boat in NH? If so, why? It appears that your Homeport is Maine. Why not just pay in Maine and be done with it? (it appears that you have)

 

[cb32863]

Benny Benny! What can I say.. The facts speak for themselves. Over 10,000 Mainers come and cross the boarders into New Hampshire daily, to buy in our state because its tax free state for most goods. They put their purchases in there cars, trucks and vessels and proceed home to Maine where they are living. Maine law is that they are required to file tax returns and include any purchases out of state of Maine MUST be reported to pay Maine state tax. Now! You tell me How many people from the state of Maine actually claim their purchases to the state.. Answer NON. The state of Maine has turned blinds eye to the stators. why you ask? They want to have their cake and ice-cream too. However, Lets have a group hug and move on to the real matters in hand. I remain without prejudice. GROUP HUG!!!!!!!

 

[Maine Sail]

Benny Benny! What can I say.. The facts speak for themselves. Over 10,000 Mainers come and cross the boarders into New Hampshire daily, to buy in our state because its tax free state for most goods. They put their purchases in there cars, trucks and vessels and proceed home to Maine where they are living. Maine law is that they are required to file tax returns and include any purchases out of state of Maine MUST be reported to pay Maine state tax. Now! You tell me How many people from the state of Maine actually claim their purchases to the state.. Answer NON. The state of Maine has turned blinds eye to the stators. why you ask? They want to have their cake and ice-cream too. However, Lets have a group hug and move on to the real matters in hand. I remain without prejudice. GROUP HUG!!!!!!!

The only truth here is that many Mainers do make purchases in NH, and on-line, and do not pay their taxes. They are CHEATS. They are also being very STUPID. Your credit card info shows exactly what you bought and where you bought it, it is all fair game in an audit..

I pay my use tax EVERY QUARTER and I would be DUMB not to.. I know three friends who have been audited and nabbed in Maine for "use tax" violations and four business owners for incorrect accounting for sales taxes. One of them had some MASSIVE penalties applied due to years of blatant use tax evasion in regards to purchases out of state. He was dumb and paid by check or credit card for everything and got hit HARD in the audit.

Maine absolutely does not turn a blind eye to any tax owed, resident or non resident. Heck Maine used to put troopers in undercover cars writing down Maine plates in the NH liquor store parking lot. Minute they went over the bridge they were pulled over for illegal importation of alcohol...

 

[Stu Jackson]

do you pay registration fees for your boat in NH? If so, why?

There have been a couple of "registration" comments during this topic (not only yours, Scott, I just chose this one).

The State of registration appears to have nothing to do with the issue originally raised, other than the fact that to define a visitor means they must be registered in another State.

He chose to register his boat in NH. Coulda been anywhere from there to FL, makes no difference.

 

[Maine Sail]

Maine Sail you said it! Heck Maine used to put troopers in undercover cars.. So why did they stop? I see thousands of cars, trucks, etc.. Coming to NH to buy from food, wine, lumber, etc.. then head home. Most of the people use cash not credit card.. Gas, Fuel is cheaper here then in Maine. So they buy here for the week. Rather them supporting there own state they come here to save a buck. So rather then go after your own issues and solve a problem.. go get a boater to get $59.70 that spends thousands in your state.. Doesn't make any sense to me!

They only ended it because NH no longer allowed them to do so... We in Maine pay a lot in taxes, far more than NH residents do, so I understand peoples frustrations but it is still 150% wrong & illegal... The bottom line is that folks do get caught and Maine does not look the other way on this.

I heard a rumbling/warning from my F&G buddy that the Maine IRS has now formed an "Amazon" task force and they are literally driving around noting addresses that get lots of packages from out of State. I am sure they will database this and then compare it with use tax returns.

As for why you should pay your $59.60?

You use our local & State services and you should pay your fair share for that use. That fair share is levied in the form of an excise tax. In Maine excise money stays local and does not go to the State level. By defrauding Rockport of excise tax, for your stated "home port" you limit funding for the Harbor Master as well as the town landing & services that you use.

Why should Mainers foot the bill for your portion of the cost of the local harbor master, town dock use, town dock winter hauling, dinghy dock use, pump outs, parking, dinghy launching ramp, trash disposal etc. etc. etc. etc. etc. etc. just because you are from NH? Do you think we who live here don't also spend "thousands" boating in the State and also support Maine businesses? In our town 100% of boat excise tax goes to the Harbor Masters office and they still run in the red or on the thinnest of budgets.

By your argument you should not pay any Maine sales taxes or a toll on our turnpike either because you're from NH. The excise tax law for boats has been here since the early 80's, not new, and yes it is the law.... Maine is not out to get anyone just see that everyone pays their fair share. If you fail to keep records that can adequately prove Rockport, ME is not your home port (as you publicly advertise it as) then perhaps better record keeping is in order.

Alternatively if you can't handle the $59.60 you could always sail back and forth to Isle of Shoals every single weekend. D'oh.......

BTW where is your full-season mooring or dock rental in NH? What were the dates yoou wre sailing in Canada and what evidence did you provide to prove you were not in Maine waters for 75 total days?

I've been on the wait list at Rye Harbor since my mother gave up both of our family moorings, during a nasty divorce, to spite my dad. Instead it lost me my lobster boat mooring... I got on the list literally 15 minutes after I found out and that was 36 years ago. You want to talk dishonesty, the political manipulation of the wait list at Rye is a complete joke. In the late 90's I got a letter saying I was number 10 on the list. In 2012 I got letter saying I was #22..... Hmmm 36 years on the list and I move backwards 12 spots in 12 years...

 

[marke14]

These two things blow my mind; I get that there is potentially a lot of tax income at stake but damn ... that is pretty Draconian if you ask me. Not denying that it happens/happened/will happen, just stating my opinion. I'm glad we've solved all the other societal woes so that Maine's IRS can focus on the real problems here!

Heck Maine used to put troopers in undercover cars writing down Maine plates in the NH liquor store parking lot. Minute they went over the bridge they were pulled over for illegal importation of alcohol...

Now anything involving transporting goods - especially alcoholic goods - is definitely put into a different legal category for historic reasons. Still, it seems crazy to me that they dedicated resources to enforcing this sort of thing on an individual consumer basis. I suppose if you nab a fellow in a box truck loading up at Costco, that's a significant windfall in terms of tax revenue. Likewise if you bust a bunch of smaller/less egregious offenders, the fees and taxes add up.

Still, one has to wonder about the "profitability" of such an endeavor. Surely some amount of training and support must be required to catch offenders and prosecute such cases.

Maine IRS has now formed an "Amazon" task force and they are literally driving around noting addresses that get lots of packages from out of State.

Now here there is some real potential in terms of uncollected tax windfalls. However I thought that Amazon was previously compelled to collect sales tax? I think it had something to do with where the seller/warehouse was located in relation to the buyer. Again one has to wonder about the legality of the surveillance required to identify such offenders. See my remarks about solving all the real problems, in order to have the luxury of focusing on this.

At any rate, overall I am with Maine Sail in that I/we (wife and I) ALWAYS pay 100% of taxes at every turn, and in a lot of cases probably overpay, but I'd rather overpay a little than risk audit and the headaches and potential fines therein.

I hear you though Stargazer, that tax situation does kind of suck and I don't blame anyone for being irritated for having to pay what feels like an unfair tax. Though I do tend to agree with Maine Sail's outlook regarding "fair share" of local wear-and-tear, etc.

Finally, in closing, I recently wrote a check to the City of Long Beach (California) where we live, and where we have a great, city-owned and controlled marina system. I had to pay $55, exclusively for the "privilege" of remaining on the waiting list for a slip. Then when I called the harbor office to inquire as the the general state-of-affairs as it pertains to said waiting list, I get treated like an assh*le for even having the temerity to ask about it. Good times! Remember: it could always be worse ...

 

[justsomeguy]

I'm glad we've solved all the other societal woes so that Maine's IRS can focus on the real problems here!

 

[Stu Jackson]

I hear you though Stargazer, that tax situation does kind of suck and I don't blame anyone for being irritated for having to pay what feels like an unfair tax.

Nice post, except for this. As I read it, this is not what this whole discussion is about.

You might want to reread reply #56 by Maine Sail.

 

[marke14]

Bottom line to me is that $60 tax on essentially a three-month stay doesn't sound that bad to me. Have you ever looked at a hotel bill? In MA, I recall paying close to $20 a night!

Not sure what Stu is referring to with his admonishment above.

 

[StargazerP303]

Here you go Maine Sail.. This is the hat we wear on trips and when we are in Rockport its Rockport hat we wear...lol

 

[chuckwayne]

Stargazer, if you approached the town/state with the same rant you gave here, I'm not surprised the weren't helpful. The law is quite clear, and has been in place for a long time. It's a state law, but enforcement falls on the towns and is sometimes spotty. Some places, the harbormasters patrol the marinas and mooring fields checking for tax stickers. Marine services are underfunded and the money goes to the town, not the state, so don't make this out to be some huge scam when you apparently haven't followed the law and finally got caught. And "harms way"? really, have they been shooting at you? I happily pay the tax because the money provides services that I use. In some places in Mass, the town/marina collects the excise tax along with the mooring/slip so the town doesn't have to worry about collection compliance.