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Thread: Luxury Tax!!!!

  1. #21
    Essex502
    This issue has been flogged several times ... for those of you not fully understanding the CA law search and read the other threads.
    In a nutshell:
    To eliminate the property tax on your boat if you live in CA you must:
    1) Register the boat out of state - you are required by the coast guard to register it in the state where you predominantly use or moor it.
    2) Store it out of state.
    3) Make damn sure it is out of state on January 1 of every year.
    If you don't do all three of the above, you are subject to the property tax in your county of residence.

  2. #22
    79 HUSTLER
    well the boats registered and stored in AZ so that is a start

  3. #23
    Scream
    Originally posted by SoCalOffshore
    It is not a luxury tax, it is a personal property tax. The tax is 1% annually and if you don't pay or forget to pay they will put a tax lien on you. That is just one more reason why my boat is registered in Arizona.
    I'm pretty sure just registering the boat in AZ will not preclude you from getting nabbed on the property tax issue. You MAY register your vessel as a non resident if you use it in AZ waters 50% of the time or more, but...the county tax assessor CAN tax you on your personal property that RESIDES in that county. AZ registration will only make it more difficult for the county tax assessor to know that you have a new boat. After that, you'll have to jump through all kinds of hoops to prove you don't have it any more or have moved the mooring place away from the jurisdiction of the assessor...

  4. #24
    Bad Puddy Tat
    NorCalCat:
    I did quite a bit of research on this subject when I purchased my boat in 2001.As well I have a friend that works in San Bernadino Tax collectors office. I verified with her that everything I did was legal.
    1. I purchased and had the boat Delivered in California. I did pay the appropriate Ca. sales tax on the boat.
    2. I own a place on the Ca. side of the parker strip. The rule states that the boat must be operated better than 50% of the time either in AZ. waters or federal water.
    3. In 2001 there was no stipulation on where the boat was stored although I do store it on the AZ side of the river. However the burden of proof would be on the county tax collector not on the owner.
    4. I registered my boat from day 1 in AZ so I never have had any correspondance with San Bernadino or Riverside County from a Luxury tax point of view
    Regarding your question about The correlation from
    registration to luxury tax that is the database the County uses (registration) to determine that you need to pay luxury tax.
    Hope this answers your questions

  5. #25
    NorCalCat
    Bad Puddy Tat,
    I am talkign about sales tax. If you register it in AZ I am told there is not sales tax. (as a non resident) Lux tax not so sure of.

  6. #26
    Bad Puddy Tat
    I beleive that if you didn't pay sales tax in Ca. that when you register your boat for the frist time and title it in Az. you would be required to pay AZ. sales tax. Not 100% sure of that but I know that's how it worked for my sand rail. I'm assuming that would be applicable to boats also.

  7. #27
    Quality Time
    I took delivery of my previous boat as a CA resident. I turned around and registered it in AZ per Coast Guard requirements of registering in state of primary use. I think I paid the property tax bill that first year. The second year I wrote the County (LA) and the DMV one letter stating that the boat is no longer a CA boat and stated the Coast Guard requirments and never heard from either of them again. There were no liens placed against my house or the boat both of which I have since sold.
    I will be taking delivery of a new boat this spring. I will see what happens this time

  8. #28
    jbtrailerjim
    My last boat I registered it Arizona as a non-resident after getting hit with the property tax bill from the County of Riverside. I never saw another tax bill again after I did that. The new boat I just registered it in Arizona as soon as I bought last September and I have not seen a tax bill yet.
    I see some comments from people saying you have to show proof of residence in Arizona and make sure that you do not store your boat in California. I've never had a problem with storeing my boat at my home here in California. But I'm sure in the hell not gonna go and tell the County of Riverside I store it the majority of the time at my home.

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