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View Full Version : Uscg Documented Vessels Tune In Please



FASTERDAMITT
04-12-2005, 04:28 PM
Looking into documenting my boat with the Coast Guard. Any Calif and/or AZ residents done this? I here some people being hit with sales tax a couple years after puchase from Calif tax board. Luxory tax? Did you you register with DMV? I read Calif residents you don't but may be liable for luxory tax anyway.

burtandnancy
04-12-2005, 05:45 PM
I bought and re-documented a boat with the USCG here in CA. However, a few months after taking it to NV, I got a letter in the mail from the NV tax board asking for NV taxes. I appealed at every level all the way up to Carson City. They wanted over $10,000. It finally cleared itself up after it was proven that the boat was in CA for 6 months before it moved to NV. Then I had to buy NV registration for $100. but did not have to put the numbers on, only carry proof that fees were paid. I have an NV number on the title as proof.
To answer your question on CA taxes, I was never billed but don't know how long that would have lasted...

Bling Bling
04-12-2005, 06:56 PM
Looking into documenting my boat with the Coast Guard. Any Calif and/or AZ residents done this? I here some people being hit with sales tax a couple years after puchase from Calif tax board. Luxory tax? Did you you register with DMV? I read Calif residents you don't but may be liable for luxory tax anyway.
Is it a new boat and has it ever been titled before?

FASTERDAMITT
04-12-2005, 08:55 PM
Thanks BURTANDNANCY.
BLING,
It's a new boat. Never titled.

Havasu Hangin'
04-12-2005, 09:01 PM
I'd take delivery in AZ.

FASTERDAMITT
04-12-2005, 09:30 PM
Will I be able to use my sisters address in AZ or will I have problems with the lender. One previous lender said he would not help support tax evason!

FASTERDAMITT
04-13-2005, 09:33 AM
Anyone?

Havasu Hangin'
04-13-2005, 09:38 AM
I can't speak for what the lender is talking about...but documented or not, taking delivery in AZ (and doing the majority of your boating in AZ) will save you Cal taxes.
Why does the lender care where you store it or where you boat?

PHOTOGLOU
04-13-2005, 09:39 AM
Just went through a big mess with State tax board on my 42...... The boat was in Texas when I bought it, I bought it through Dick Simon Marine A CALIFORNIA CO took delivery in AZ USCG hailing port in AZ reg in oregon.... BUT because I purchased from a CAL dealer CAL DMV finds out about all sales.... Had to prove I had a residence I OWNED in AZ..... finally got resolved and the Mary Conlin Co in ???????Newport Beach???????? did all of the reg paper work and USCG doc paperwork $ 500... I will post there number when I get home State of Cal wants there money if you are a residend of Cal AND YOU OWE IT per them..... UNLESS you can prove it will not be Used in CAL for 1 YEAR (new law) and you OWN a residence out of Cal.....

FASTERDAMITT
04-13-2005, 11:46 AM
Why does the lender care where you store it or where you boat?
That I not sure, but they all ask.

FASTERDAMITT
04-13-2005, 11:47 AM
Thank's PHOTOGLOU.

burtandnancy
04-13-2005, 01:28 PM
Just taking a wild guess here, I would imagine the LENDER wants to know where the boat is located just in case they have to pick it up some day. Also, I used the Mary Conlon Company in Newport Beach and they are very good.
I think your are messing around in too many states, opening up a whole new can of worms. You may be looking at a tax hit everywhere. The last thing you need to do is wave red flags in CA, AZ and OR...

Huckleberry
04-13-2005, 02:37 PM
I'm fighting this battle right now. Heres the skinny:
1. You must purchase and take delivery of the boat OUTSIDE Taxifornia.
2. You may not bring the boat inside the state for any reason at all, for any amount of time at all for one full year! The only exceptions are for repairs or testing in repairs for a total of less than 25 hours. (Thanks to Kilrtoy for straightning me out on that one!)
3. You must be able to provide proof to the greedy fockers that you store the boat outside the state, and use it EXCLUSIVELY outside the state of Taxifornia. This includes having rental receipts, gas receipts, moorage receipts, repair/maintenance receipts.
4. They then want you to show them you paid sales/use tax AND property tax on the boat where you bought it or where you use it.
5. IF, and it appears to be a HUGE IF, you jump though all the right hoops they MIGHT exempt you from paying the sales tax and property tax.
6. You must also have a bill of sale and letter from the person/dealer that sold you the boat stating where and when the delivery took place.
They have really gotten strict on this, trying to squeeze every last dollar out of us Californians. There's a few websites that will help you on this. I'll try to find them and post links.

Huckleberry
04-13-2005, 02:39 PM
Here's alink to a thread we had on this about a week ago. Kilrtoy put some good links in there.
USCG and Sales Tax Thread (http://www2.***boat.com/forums/showthread.php?t=75700)

FASTERDAMITT
04-13-2005, 05:22 PM
Thanks Huck! Interesting.

TrojanDan
04-13-2005, 05:45 PM
I'm fighting this battle right now. Heres the skinny:
1. You must purchase and take delivery of the boat OUTSIDE Taxifornia.
2. You may not bring the boat inside the state for any reason at all, for any amount of time at all for one full year! The only exceptions are for repairs or testing in repairs for a total of less than 25 hours. (Thanks to Kilrtoy for straightning me out on that one!)
3. You must be able to provide proof to the greedy fockers that you store the boat outside the state, and use it EXCLUSIVELY outside the state of Taxifornia. This includes having rental receipts, gas receipts, moorage receipts, repair/maintenance receipts.
4. They then want you to show them you paid sales/use tax AND property tax on the boat where you bought it or where you use it.
5. IF, and it appears to be a HUGE IF, you jump though all the right hoops they MIGHT exempt you from paying the sales tax and property tax.
6. You must also have a bill of sale and letter from the person/dealer that sold you the boat stating where and when the delivery took place.
They have really gotten strict on this, trying to squeeze every last dollar out of us Californians. There's a few websites that will help you on this. I'll try to find them and post links.
When we bought our boat it was from a private party who lived in Ohio. The boat was in Havasu at the time of the sale. After the sale, the boat stayed in my garage in Havasu. The "taxman" from California sent me a letter about 14 months later asking for their taxes. I sent them two seperate maintenance bills exactly 12 months apart from ALCO Marine in Havasu plus copies of my mortgage bills showing my Havasu address, plus the bill of sale, our CG documentation, and some other things you listed. After corresponding with the "taxman" over the course of about 6-8 months, I finally got an acknowledgement letter from California that my boat was not purchased in CA or intended to be used in CA. The moral of the story, stay persistent with California and provide as much documentation as possible. The burden of
proof lies with you.
Coast Guard Documention is great if your boat qualifies. The paperwork was relatively simple and there is no need to pay a third party to prepare the forms you can easily do, provided you don't have some complicated purchase and aren't knowingly trying to pull something off shaddy. CG renewal each year is free too!

FASTERDAMITT
04-14-2005, 09:07 AM
Thanks TROJANDAN, good info.

TrojanDan
04-14-2005, 09:13 AM
Glad to help. Remember to keep your gas receipts from AZ too. They are just as important as the other documentation when it comes to proving your case to CA. :cool: