I'm ready to buy a used 34 but need to know if there's any advantage to having the boat registered with the Coast Guard. The bank doesn't care, the insurance company doesn't care, should I? Thanks!
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It Depends
It may depend alot on where you keep your boat and where you sail it. My H27 is documented and the previous owners also documented it. Here in VA it means I don't have to register it and get a new state decal for the boat each year ($$). I do have to renew with the CG by sending back a card each year. I saves me a few bucks, especially the longer I keep it. I've heard a lot of talk pro and con as far as insurance, taxes, efforts by law enforcement to locate a stolen documented boat, etc. All the details lead me nowhere...it was the $$ savings that convinced me. I also keep my boat in Portsmouth where there are no personal property taxes on boats (we do have a $20 annual city sticker though). Hope you get better answers that will help make your decision.
It may depend alot on where you keep your boat and where you sail it. My H27 is documented and the previous owners also documented it. Here in VA it means I don't have to register it and get a new state decal for the boat each year ($$). I do have to renew with the CG by sending back a card each year. I saves me a few bucks, especially the longer I keep it. I've heard a lot of talk pro and con as far as insurance, taxes, efforts by law enforcement to locate a stolen documented boat, etc. All the details lead me nowhere...it was the $$ savings that convinced me. I also keep my boat in Portsmouth where there are no personal property taxes on boats (we do have a $20 annual city sticker though). Hope you get better answers that will help make your decision.
Documentation
Documentation has some advantage when sailing from one country to another. Supposedly it entitles you some advantage if in a foreign country and someone is ill. I dont know this for sure. It gives a history to the boat. You dont have to register it with the state government and dont have to use their numbers then on the boat. For the most part, its a "cool" thing to do but thats about it from my perspective!
Documentation has some advantage when sailing from one country to another. Supposedly it entitles you some advantage if in a foreign country and someone is ill. I dont know this for sure. It gives a history to the boat. You dont have to register it with the state government and dont have to use their numbers then on the boat. For the most part, its a "cool" thing to do but thats about it from my perspective!
State Registration
Even if you document the boat you may have to "register" the boat with state authorities! You will not have to have state numbering on the boat. Documenting is the way to go!!
Even if you document the boat you may have to "register" the boat with state authorities! You will not have to have state numbering on the boat. Documenting is the way to go!!
Documentation sometimes required by lender
Documentation is sometimes required by a lending institution for a mortgage. Not all lenders require it. Some are content with title.
Documentation is sometimes required by a lending institution for a mortgage. Not all lenders require it. Some are content with title.
State Specific
Do check with the state where the boat is kept. Some states are taking a dim view of documentation without state registration as owners have used this techneque to avoid paying a sales tax on his purchase. Documentation also costs, however, so the trade off of documentation versus paying an annual users fee may be a mute point. However avoiding sales tax, if legal, may be significant.
Do check with the state where the boat is kept. Some states are taking a dim view of documentation without state registration as owners have used this techneque to avoid paying a sales tax on his purchase. Documentation also costs, however, so the trade off of documentation versus paying an annual users fee may be a mute point. However avoiding sales tax, if legal, may be significant.
Check on the Sales Tax Issue
Just an add-on note. In VA, documenting the boat does not keep you from paying the watercraft sales tax. It is still due and and the folks at the VA Dept of Taxation will want to see a check from you. What you avoid is the state registration and its annual fees.
Just an add-on note. In VA, documenting the boat does not keep you from paying the watercraft sales tax. It is still due and and the folks at the VA Dept of Taxation will want to see a check from you. What you avoid is the state registration and its annual fees.
Tax Issue
However some realize that if the boat is bought from out of state, the state has no way of knowing that one owns the boat unless it isn't licensed. Thus documentation becomes a way to dodge the sales tax. Not recommended, but a fact. Interesting problem for the state . . . PS: my boat has a state license.
However some realize that if the boat is bought from out of state, the state has no way of knowing that one owns the boat unless it isn't licensed. Thus documentation becomes a way to dodge the sales tax. Not recommended, but a fact. Interesting problem for the state . . . PS: my boat has a state license.
can avoid some state sales taxes
Although, as was my case, I could not avoid paying state sales taxes to the state of Texas despite my coast guard documentation, I suspect if I sell the boat privately, that buyer could avoid the state sales taxes. The state would have no knowledge of the transaction.
Although, as was my case, I could not avoid paying state sales taxes to the state of Texas despite my coast guard documentation, I suspect if I sell the boat privately, that buyer could avoid the state sales taxes. The state would have no knowledge of the transaction.
document
I purchased a documented vessel in Rhode Island and was living in Mass. Upon my 3 year travel to Carribean I was hit with Mass. taxes on the boat and penelties 3 times what I owed. Check with your State to see if your liable.
I purchased a documented vessel in Rhode Island and was living in Mass. Upon my 3 year travel to Carribean I was hit with Mass. taxes on the boat and penelties 3 times what I owed. Check with your State to see if your liable.
document vs title
Does the documentation serve as a title and proclaim ownership? We bought a used boat that was already documentated and when we closed the documentation was transfered from the previous owner to us. I recently paid off the boat mortgage and received a notorized statement from the bank that the loan was paid but no title. Should there be a title somewhere? TIA, Mike
Does the documentation serve as a title and proclaim ownership? We bought a used boat that was already documentated and when we closed the documentation was transfered from the previous owner to us. I recently paid off the boat mortgage and received a notorized statement from the bank that the loan was paid but no title. Should there be a title somewhere? TIA, Mike
Documentation and paying off boat loan
Documentation serves not only to establish ownership, but to record liens. The bank should send a satisfaction of lien to the CG, which will then record that fact. For $25, you can get from the CG an abstract of title for any documented vessel, showing complete ownership and lien history. If you have any questions about the status of your boat, call the Vessel Documentation Center. I have always been impressed with their service.
Documentation serves not only to establish ownership, but to record liens. The bank should send a satisfaction of lien to the CG, which will then record that fact. For $25, you can get from the CG an abstract of title for any documented vessel, showing complete ownership and lien history. If you have any questions about the status of your boat, call the Vessel Documentation Center. I have always been impressed with their service.
Dave, why did you return with the boat?
Given the size of that tax penalty, I would have been tempted to sell it in the Caribbean. Or to return to some other state.
Given the size of that tax penalty, I would have been tempted to sell it in the Caribbean. Or to return to some other state.
Coast Guard Web Site
I found alot of my answers here: http://www.geocities.com/Pentagon/Quarters/5481/index.htm
I found alot of my answers here: http://www.geocities.com/Pentagon/Quarters/5481/index.htm
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