Just got a letter from my marina operator that the county tax assesor has decreed that slip renters must pay some sort of "property tax" for the slips we rent from the county. We already pay property tax on the boat every year but this appears to be a new tax based on the value of the slip we rent. Nothing about how it is determined, the assesor will send us a bill. I don't know if this is a new idea or a bad old one coming to the Pacific coast, anybody else got something like this?
Property Tax on a Rented Slip ?
- Thread starter Calif. Ted
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Same as in Sacramento
I forget "how" they determined the tax, but it was levied each year. We were renting from the City. It must not be "new" as this was back in the early 90's when we first rented.
I forget "how" they determined the tax, but it was levied each year. We were renting from the City. It must not be "new" as this was back in the early 90's when we first rented.
Tea
Sounds like you Calif guys need to get together and have a little party, dress up like native americans, and toss some tea in the harbor. Look what happened when the people of Boston tired it a few years ago. (One if by sea, two if by Schwartzanegger)
Sounds like you Calif guys need to get together and have a little party, dress up like native americans, and toss some tea in the harbor. Look what happened when the people of Boston tired it a few years ago. (One if by sea, two if by Schwartzanegger)
Ouch, how can they tax you for something
you don't own. I could sell sales tax for the lease fee.
you don't own. I could sell sales tax for the lease fee.
Are the Owners Paying a Tax?
Or are these municipal type marinas that do not pay taxes and the state, county or whatever is looking to make up the lost revenue. Sounds screwy a renter does not ostensibly pay taxes although they end up paying it as part of the rent. That is some sort of California idea that needs to stay out there.
Or are these municipal type marinas that do not pay taxes and the state, county or whatever is looking to make up the lost revenue. Sounds screwy a renter does not ostensibly pay taxes although they end up paying it as part of the rent. That is some sort of California idea that needs to stay out there.
double
He could be switching from his paying the tax over to you paying the tax and keeping the difference. Lets say he's been paying the state $100 in taxes for your slip. He tells the state to collect it from you directly now and the state stops collecting it from him. But he keeps charging you the same rate and keeps the $100. Since some areas are paying the tax and others are not it seems a little off, if this is a STATE tax.
He could be switching from his paying the tax over to you paying the tax and keeping the difference. Lets say he's been paying the state $100 in taxes for your slip. He tells the state to collect it from you directly now and the state stops collecting it from him. But he keeps charging you the same rate and keeps the $100. Since some areas are paying the tax and others are not it seems a little off, if this is a STATE tax.
Everything is taxed...
There are a number of counties in California that do this. They call it "possesory use tax". Isn't that a clever euphamism? At least they tell you about it and give you the opportunity to write it off on your long form. Truth is that everyone everywhere pays this tax, it is just added to your slip rent. If you were given the opportunity to inspect the business plan or the P&L of your marina you would see a line for the property tax asessment. I hope that no one believes that the marina opperators pay the tax out of their after tax profits... just because they are sweethearts.
There are a number of counties in California that do this. They call it "possesory use tax". Isn't that a clever euphamism? At least they tell you about it and give you the opportunity to write it off on your long form. Truth is that everyone everywhere pays this tax, it is just added to your slip rent. If you were given the opportunity to inspect the business plan or the P&L of your marina you would see a line for the property tax asessment. I hope that no one believes that the marina opperators pay the tax out of their after tax profits... just because they are sweethearts.
Everyone pays
I'd be surprised if anyone out there, regardless of whether he/she realizes it, isn't also paying property tax which is built into the slip fee. To think otherwise would mean we all have marina owners gratious enough to pay it out of their own pockets... the only difference is that some marina owners don't hide it
I'd be surprised if anyone out there, regardless of whether he/she realizes it, isn't also paying property tax which is built into the slip fee. To think otherwise would mean we all have marina owners gratious enough to pay it out of their own pockets... the only difference is that some marina owners don't hide it
It's called "Possessory Interest Tax"
and most municipalities charge it to their tenants. The idea is that a private landlord pays property taxes, and gets that back from the tenant in the form of higher rent. The municipalities pay no property tax, so, at least in theory, the tenant isn't paying any tax as part of their rent. (No matter that the government charges you a "market rent" based on what competing, privately held marinas may be charging.) The only good thing with this bad thing, is that, as a property tax based on the value of the property, it should be deductible on your income tax return, just like the personal property taxes on your boat, house and your DMV fees. Here's a link to the Sacramento County website with info on this tax. One more week till tax day!
and most municipalities charge it to their tenants. The idea is that a private landlord pays property taxes, and gets that back from the tenant in the form of higher rent. The municipalities pay no property tax, so, at least in theory, the tenant isn't paying any tax as part of their rent. (No matter that the government charges you a "market rent" based on what competing, privately held marinas may be charging.) The only good thing with this bad thing, is that, as a property tax based on the value of the property, it should be deductible on your income tax return, just like the personal property taxes on your boat, house and your DMV fees. Here's a link to the Sacramento County website with info on this tax. One more week till tax day!
tax
Annoying as this is, it is really not a new tax, and is perfectly legit. Los Angeles County has done this for boat slips for decades. It has just been hidden in Orange County. Sorry!
Annoying as this is, it is really not a new tax, and is perfectly legit. Los Angeles County has done this for boat slips for decades. It has just been hidden in Orange County. Sorry!
Well then, let's say...
That my boat is in a 100 slip marina, AND that all the slips are the same size and same fee, AND 50% of the slips are being rented. Does that mean the marina owner who is paying property tax on 100% of the slips regardless of their occupancy status will double my slip's property tax fee to cover one of the empty slips?
That my boat is in a 100 slip marina, AND that all the slips are the same size and same fee, AND 50% of the slips are being rented. Does that mean the marina owner who is paying property tax on 100% of the slips regardless of their occupancy status will double my slip's property tax fee to cover one of the empty slips?
Brian D
you may have heard this before but it's still true - life isn't always fair. You can bet on it.
you may have heard this before but it's still true - life isn't always fair. You can bet on it.
Thanks Guys, The logic escaped me and
I kept going around in circles, Peter & others hit the nail on the head. They did call it a "Possessory Interest Tax" which I couldn't decipher. This is a harbor built and owned by Orange County, we make our checks payable to the county and send to the Marina Company. Harbor is divided in half with 2 private companies running each half, part way into a major "renovation" project that involves removing hundreds of slips under 30 ft. in favor of bigger slips. Not sure of exact relationship between the county & marina operators but they are pretty cozy. Needless to say it is expected for them to look for every dime (turns out their project is already over budget). Going to be a litle tense around the marina for a while.
I kept going around in circles, Peter & others hit the nail on the head. They did call it a "Possessory Interest Tax" which I couldn't decipher. This is a harbor built and owned by Orange County, we make our checks payable to the county and send to the Marina Company. Harbor is divided in half with 2 private companies running each half, part way into a major "renovation" project that involves removing hundreds of slips under 30 ft. in favor of bigger slips. Not sure of exact relationship between the county & marina operators but they are pretty cozy. Needless to say it is expected for them to look for every dime (turns out their project is already over budget). Going to be a litle tense around the marina for a while.
Yeah
Yeah Ted, I was going to call you RE: this, I got the same bill. Funny how it has SUDDENLY appeared, and the marina owner states, "I just discovered". BULL$#!! They are just separating it now so they can charge us more slip fees without saying they're charging us more slip fees. BTW and coincidentally I also got a separate notice of slip fee increase! Why do I suspect an anti boater campaign? Why does it appear that the government and others are trying to squeeze us? With the public's help and acceptance - see anti boater radio ads and signs- I'll start a different thread on this subject.
Yeah Ted, I was going to call you RE: this, I got the same bill. Funny how it has SUDDENLY appeared, and the marina owner states, "I just discovered". BULL$#!! They are just separating it now so they can charge us more slip fees without saying they're charging us more slip fees. BTW and coincidentally I also got a separate notice of slip fee increase! Why do I suspect an anti boater campaign? Why does it appear that the government and others are trying to squeeze us? With the public's help and acceptance - see anti boater radio ads and signs- I'll start a different thread on this subject.
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