transit taxes

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R

ROAN

I posted the following on Waterway Guide and got no responses. Can I receive insight here? "I keep my boat on Lake Champlain NY. It is a Canadian registered boat but "in Bond" as the Canadian taxes have not been paid. Most boats on Lake Champlain are like this. The question is what happens when I cross many states on the intercoastal from NY to Florida. Am I at risk in various states for a type of use tax as my boat has not paid taxes in any state or province?"
 
Jan 22, 2008
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Tax Dodger

Sorry, I just could not resist. You would not have any use taxes, but you could have transit fees for locks as appropriate. A luxury, property, or excise tax levied by Canada or a province is entirely different from what amounts to a vehicle registration. I'm not aware of what identification of having paid your tax you may have to display, I'm sure you have seen the annual stickers that New York and Vermont require their boat owners to display. I think that a lack of same or similar would prompt more than a few boardings and inspections during a long trip with stops in many busy ports and would not be worth the hassle, nor easy to rectify away from home. I would not expect the US Coast Guard, or marine patrols from various government jurisdictions to be understanding of a lack of proof of any current registration or taxes paid, etc., regardless of the practice of authorities in the area you most often frequent. Also, keep in mind that many of these police authorities are looking for illegal arms and drug trafficking. An unregistered boat or one with less than complete papers would be a fine target. I would pay the taxes and have all of the papers and proof of the boat being properly registered and fees paid before embarking on any trip. And by the way, unlimited towing insurance is the next best assurance of limiting liability of a huge towing claim if you are so unfortunate.
 
R

Roy

Registration and Taxes

I have a question that is somewhat related and perhaps someone could help. I am a Canadian resident ,but a US citizen. I bought a boat last fall in Maryland and will sail it back to Lake Champlain this spring.It is on the hard presently and has no # as it was a documented vessel from the previous owner.I don't want to re-document but to register. I have a brother living in Burlington Vermont and wanted to get a marina slip there but there is no room this year. I had to put my name on lists for Vermont and took a space in Plattsburgh NY. I need to register the boat,but my question is NY or VT? Called DMV in both states and got the runaround. Seemed like the bottom line was nobody really knew for sure given that I am not a resident of either state or the US. I paid no sales tx in Maryland as I will not be keeping the boat there. Is it possible and legal to register in Vermont and pay tax to Vermont,and get a validation sticker from NY since the boat will be at the marina in Plattsburgh this summer? I wish this because the tax tax rate is a little less,and I will be keeping the boat permanetly in Vermont as soon as a dock space opens up.
 
Apr 3, 2005
40
Hunter 34 North Hero Marina, Vermont
Vt registration

It is my understanding and have knowledge of Canadians, living in Canada, using their Canadian address, being able to register their boat in Vermont. The sales tax is 6% of purchase price and the VT dmv will mail the registration papers to a Canadian address. They were also able to obtain insurance from a US insurer. So, the long and the short is, as a US citizen living in Canada, I would predict that you would have no problem in Vermont. NY is another can of worms, but since Lake Champlain is equally in VT and NY waters, you could probably get away with VT registration solely. Good luck. George
 

KennyH

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Apr 10, 2007
148
Hunter 25 Elizabeth City NC
Most countys charge a personal property tax

The way in works in North Carolina and most other states is you pay taxes on where your boat is moored on Jan 1 of each year. Once you have paid it anywhere you just produce the receipt and you are home free. Most county tax assers list the boats at marinas on Jan 1 using state registration numbers, slip rent information from the marina and charge accordingly. Has nothing to do with weather you are a state resident or not. If you are out in the middle of the ocean or large sound on Jan 1 you are probably not going to get a bill but nothing garantees it. The tax is usually based on the retail blue book value of your boat. You pay the same rate as someone who owns a house etc. in that county. I have had accessors say you pay on where you keep the boat for the longest time during the year but if you pay it somewhere else the argument dies quickly.
 
Mar 13, 2007
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I don't know what Florida

does about foreign flagged vessels. But, the law requires Florida registration for all vessels in Florida waters unless thay are already registered in another state: "328.58 Reciprocity of nonresident or alien vessels.--The owner of any vessel already covered by a registration number in full force and effect which has been awarded: (1) By another state pursuant to a federally approved numbering system of another state; (2) By the United States Coast Guard in a state without a federally approved numbering system; or (3) By the United States Coast Guard for a federally documented vessel with a valid registration in full force and effect from another state shall record the number with the Department of Highway Safety and Motor Vehicles prior to operating the vessel on the waters of this state in excess of the 90-day reciprocity period provided for in this chapter. Such recordation shall be pursuant to the procedure required for the award of an original registration number, except that no additional or substitute registration number shall be issued if the vessel owner maintains the previously awarded registration number in full force and effect." There is no property/use tax for recreational boats in Florida. There is a sales tax for the purchase of a boat and if you have not paid this somewhere else, you may be in trouble. All of this is enforced by the notoriously arbitrary FWC - Fish and Wildlife Commision, affectionately known as the Water Police, Marine Gestapo, etc.
 
May 24, 2004
7,179
CC 30 South Florida
I don't understand your gimmick. You are saying

that the boat is titled in Canada but that you keep it, what I understand year round, in the state of New York. New York is considered a tax predatory state and it is hard to conceive that they will let you maintain the boat there without charging a registration or usage fee. If you do pay such fee you should have a NY sticker affixed to your mast or portside bow. Having such a sticker and it being current will give you reciprocity privileges to transit the other states. The key word here is transit as most states have a time limit which is usually 90 days after which they will require you also pay a local registration or usage fee. I would advice that if your title papers are Canadian that you fly the stars and stripes as a courtesy flag and the maple leaf in your staf. You would not want to give the incorrect idea that you are a USCG titled vessel registered in NY when in fact you are a foreign vessel. Marine officers or USCG may not take kindly to such deception whether intentional or not. Google the diferent states you will be going through but like I said almost all should have a 90 day free period.
 
D

Daryl

Oh Canada!

The bad news is most officials on Lake Champlain know that many of the large Canadian vessels are kept in the US to avoid sale tax and registration fees. The good news for you is that many continue to get away with it and only the locals pay their proper fees and taxes. When we see a vessel with no registration numbers and no flag it usually says Montreal on the back. In Vermont I have seen state officials work with marinas to get owner information to collect sales tax but the Canadians seem to get a free ride.
 
R

ROAN

numbers

To be legal the Canadian Boat should have numbers on it. I was boarded by the USCG for an inspection 2 years ago and they looked at my registration and numbers on the bow. They must be there or the Canadian boat is illegal.
 
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