Not to start another flame fest, but I've found it makes a big difference to show up at the MD DNR offices instead of dealing with them by phone or mail. Pretty much all of my experiences, they've been extremely "accommodating". Saved me $$ on more than couple occasions.
Re: MD DNR
- Thread starter JohnS
- Start date
OK, I give...
Let's assume you live in two different states and you move the boat from one to the other annually. The boat, purchased and registered and taxes paid In one state. What are you supposed to de, re register the boat and pay use tax and sales tax every time you move it? It would seem that one of the states is the primary residence even though technically you could live in each state 5 months and spend the other two months moving the boat in either direction. What if the boat is registered to an LLC in Montana and is never physically in that state? Seems like some folks manage to do that with motor homes.
Let's assume you live in two different states and you move the boat from one to the other annually. The boat, purchased and registered and taxes paid In one state. What are you supposed to de, re register the boat and pay use tax and sales tax every time you move it? It would seem that one of the states is the primary residence even though technically you could live in each state 5 months and spend the other two months moving the boat in either direction. What if the boat is registered to an LLC in Montana and is never physically in that state? Seems like some folks manage to do that with motor homes.
In practice what you do is pay the DIFFERENTIAL of taxes paid to the original state, and then keep your records of ONE TIME payment to all states.
Example:
7% sales tax paid to original state; new state @ 5% .... you owe NOTHING in sales taxes.
5% sales tax paid to original state; new state @ 7% .... you owe 2% to the 'new' state.
0% sales tax paid to original state; new state @ 7% .... you owe 7% to the 'new' state.
Caution: This does not include places that require ANNUAL personal property-type taxes (some/many counties of Virginia, etc.), where a 'yearly' tax of upwards of 5+% must be paid on 'assessed value', and depending on exactly the geographical location of the item during 'the first two weeks of January', etc. This is for boats/cars/trucks/aircraft, etc. etc. etc.
Example:
7% sales tax paid to original state; new state @ 5% .... you owe NOTHING in sales taxes.
5% sales tax paid to original state; new state @ 7% .... you owe 2% to the 'new' state.
0% sales tax paid to original state; new state @ 7% .... you owe 7% to the 'new' state.
Caution: This does not include places that require ANNUAL personal property-type taxes (some/many counties of Virginia, etc.), where a 'yearly' tax of upwards of 5+% must be paid on 'assessed value', and depending on exactly the geographical location of the item during 'the first two weeks of January', etc. This is for boats/cars/trucks/aircraft, etc. etc. etc.
How does depreciation factor in this equation? In 1987 I bought a new ski boat in Illinois for $17,000 and paid 6% sales tax if I remember correctly. So I moved to NJ in 1989where the tax was 7% but the boat had depreciated to about $12,000 based on my estimation at the time. That's probably what I declared so no tax due, I think. I don't remember the details but I'm pretty sure I never had to pay tax in NJ to register the boat.
What a curious thing to relate. It begs more explanation .... How did they save you money? Is there a discount for dealing with them in person? Or, was there a 'mistake' made by the clerks when dealing with them by mail, which was only 'corrected' by confronting them in person? Or is the whole permitting process so confusing and misleading that innocent civilians typically can't figure out the money owed and are mislead into over-payment until graced with the benevolent service of the clerks behind the counter?
Isn't it strange when we begin to feel grateful while government servants are reaching into our pockets? The government was created by our founders to serve the people. Since when do we begin to feel grateful to servants for not taking money when they may not be entitled? Exactly who is working for whom? It's a sad day when the government is no longer working for us and the tables are turned. Maybe we're there already.
Appraisal of assessed value.
Can be done by yourself by presenting documented evidence of recent completed sales of same or nearly same boat; Kelly Blue Book etc. for vehicles, etc.
In your specific case $17K (.06) = $1020; $12K (.07) = $842 ... which is less than $1020; therefore tax differential is LESS (minus) and therefore you owed NJ $0.00.
Ha! Exactly!
The reason for paying registration fees, taxes and penalties have far less tangible benefit to us, yet we're happy when we escape without too much pain. Krusty was forced by the power and authority of the State to pay a penalty that the State was not entitled to collect. That should piss people off.
Love the Animal House reference! It's perfect and brings back those college memories!
Isn't it funny ... we'll go into West Marine of our own free will and afterwards complain about the price and the level of service. This for products we choose to buy.
The reason for paying registration fees, taxes and penalties have far less tangible benefit to us, yet we're happy when we escape without too much pain. Krusty was forced by the power and authority of the State to pay a penalty that the State was not entitled to collect. That should piss people off.
Love the Animal House reference! It's perfect and brings back those college memories!
Speaking strictly about boat registration & not politics 
, Scott sums it up perfectly.
My beef with DNR was having to pay a penalty of several hundred $$ for not paying excise tax on a boat that was sitting in my yard for 9 years. Not to mention having to pay taxes at all on a boat that I legally purchased 20 years ago as a resident of another state. More of a policy complaint than about the personnel, unless the personnel got the policy wrong?
And, yes, they use current value from the BUC book. And, yes, I feel like Chip at the Omega initiation
, Scott sums it up perfectly.My beef with DNR was having to pay a penalty of several hundred $$ for not paying excise tax on a boat that was sitting in my yard for 9 years. Not to mention having to pay taxes at all on a boat that I legally purchased 20 years ago as a resident of another state. More of a policy complaint than about the personnel, unless the personnel got the policy wrong?
And, yes, they use current value from the BUC book. And, yes, I feel like Chip at the Omega initiation
What has happened over the past 40-50 years is that government, virtually all government across the planet, has decided that citizens no longer OWN or have 'rights' to personal property but simply 'temporarily rent' that property from the government.
Such is called 'statism'.
Such is called 'statism'.
.... So I purchased a salvaged Rhodes 22 about 3 years ago. Paid $250 for the hull. I have the title but have not put it in my name yet because I'm still restoring it.
I'm going to get the screw when I try to put the title in my name....
I'm going to get the screw when I try to put the title in my name....
Rob;
As long as you have a bill of sale and the title with of course the bill of sale showing sold to you and a title that was assigned over to you, you will fill out an application and submit that to VA Department of Game and Inland Fisheries. Tax is based on the bill of sale. The sale of course is reported to the city or county and personal property taxes are going to be low as their is no inspection unless this is a declared salvage or totaled wreck type boat and that I am not sure if an inspection is needed. Call Cindy or Janet at VA DGIF boat titling and registration in Richmond and they will best advise you. I know these two ladies very well and they are the ones who do the titling and registration in Virginia
dave condon
As long as you have a bill of sale and the title with of course the bill of sale showing sold to you and a title that was assigned over to you, you will fill out an application and submit that to VA Department of Game and Inland Fisheries. Tax is based on the bill of sale. The sale of course is reported to the city or county and personal property taxes are going to be low as their is no inspection unless this is a declared salvage or totaled wreck type boat and that I am not sure if an inspection is needed. Call Cindy or Janet at VA DGIF boat titling and registration in Richmond and they will best advise you. I know these two ladies very well and they are the ones who do the titling and registration in Virginia
dave condon
Well, as a "for instance", I got an inflatable but was still shopping for an outboard. When registering the boat, I didn't put the HP on the form because I didn't know what I'd end up buying. The guy asked me, and I told him I was still looking for one, maybe 10 hp. He says "You know, anything 7.5 and under is free registration." Works for me. Saved me about $20 every two years.