Sales Tax

[sv Makai]

MD USE Tax

MD tax on a boat is a one time tax. It is paid at purchase. Even if documented you are still required to register in the state. If you bring a boat in from another area the owner will owe the difference if the state previously regersitared in lower. Annual decal was $20.MD requires that boats kept in MD for 90 days are required to register. It used to be a month but it was extended as many people traveling north or south were forced to leave early (bad for tourism dollars). These owners were not intending to stay as permanet residnets thus the 90 gave provided enough time to stay, site see and spend.Virgina and Washington DC have property tax ranging from 4% to 1 1/2% of the value due annually. I have seen many boats not registered and there is a risk as there are many dock walkers who are happy to report to DNR.We lived in Oak Hill near Reston but kept our boat on the Chesapeake Bay where it was used. Even though we were residents of another state we were required to registar in MD (we are USCG doc'd as well). http://members.cox.net/sv_makai/

 

[Ed]

MD Tax

About three years ago, I bought our Hunter 34 in NYC, and then sailed it to MD, where it has been ever since. I paid a one-time-only sales tax of 5% on the amount I paid. Since then, the only fee I pay MD is a $25 registration fee that is good for two years.If I had kept the boat in VA, I would have paid a one-time-only sales tax of about 3%, but I would have to pay a personal property tax based on its value, every year. :^(Happy sails to you ~ _/) ~

 

[Alan]

Bud

Sounds to me that your state is doing the same thing the federal gvt has done with social security. It has been raiding that piggy bank for years and using the money elsewhere and now is claiming that SS cannot support itself.....lies, lies, ALL lies!! If they had left the piggy bank alone it would be MAKING money and our SS taxes would be going down NOT up.

 

[Jonathan]

How bad is NY?

I bought my yawl in VA, last year, and just recieved a letter from some nice lady revenue agent, asking me for info so that she can assess my taxes. There's a caveat at the bottom of the form, which allows for the possibility that I'm only having repairs done, and may be paying taxes elsewhere. Do I have to register the boat in VA, or can I register it up in NY, or CT, or wherever I eventually moor it for the summer, and which would be better? I plan on having it hauled out for the winter months in the boatyard I bought it in, in VA, as they seem good people.

 

[Freddy Freeloader]

IOIOIOIOIO

OK, so I bought the boat and now I owe sales tax. The owner (private party) gave me a blank bill of sale. What to do...what to do...Can I subtract the value of all the goodies that came with the boat and just pay on the boat? (dinghy and outboard, books, pfds, hand held gps etc. etc. etc.) or will I find myself in the middle of an audit? Yes, I know the state is out of money and all that BS but I can't bring myself to feel their supposed pain. Just wondering.........

 

[eds928gt]

Report what you'd sell it for.

It's basically an extension of "Treat others as you want to be treated".~ Happy sails to you ~ _/) ~

 

[Rick Webb]

Freddy, Come On Now

The boat was $1.00 it was everything else that raised the price up to what you paid. That would be my story and I would stick to it.

 

[sv Makai]

no purchase price but value

In VA you may only pay the sales tax for a dollar purchase price, but the property tax is based on the value of the boat. You always run the risk every year of VA coming back and saying you owe more because the value it higher than you are claiming.being fair within the law helps reduce potential problems down the road or waterway

 

[Jim Seamans]

States and taxes

Quick story, when I bought the H356, i traded in a H260 which the dealer gave me a great trade-in price. Maryland refused the value saying the trade-in value was greater than the "blue book" allowed for it. So he adjusted the H260 down to the value they stated and reduced the price of the H356 so it washed out in the end.If I had registered the boat in VA the first year property tax would have been $4300 because it was new. Then based on the "blue book" value after that.JimS/V Java

 

[Dirk H]

Re: Taxes, What is That?

Purchased a used boat privately last year. Paid price plus sales tax when I registered as new owner, in our province 8% tax. What is this property tax thing? We may be taxed pretty high here, but guys at least we don't have property taxes for our boats, so Shhhhh don't mention property tax. One of our Revenue Canada guys may be reading these posts and next thing we will be having Property taxes on our boats too.

 

[Anon E. Moose]

IOIOIO

You Canadians are lucky for now--we have to (or are suppose to) pay a one time 8.25% use tax on the purchase price plus an annual 1% property tax based on the value that Los Angeles county decides to give to the boat. The property tax valuation may or may not have any relation to the sales price. This can be good or bad. Also, there is a small fee to the Coast Guard every other year, I do believe or to the Department of Motor Vehicles if that is where the boat is registered. They must think that just because we own a boat, we must be rich or something................I wish!