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-   Archive through March 15, 2006 (http://www.wakeworld.com/forum/forumdisplay.php?f=309006)
-   -   CA property tax for $30k - 40k boat (http://www.wakeworld.com/forum/showthread.php?t=306928)

bdavis 03-13-2006 11:32 AM

AZ raised its fees by almost 200% $99 - $274. So I'll probably register it in CA. DMV gets $10 a year but how much do you pay for prop. taxes on your vessel. I'm in L.A. County.

forwaken 03-13-2006 11:32 AM

370 here in central cali.....<img src="http://www.wakeworld.com/MB/Discus/clipart/angry.gif" border=0>

john 03-13-2006 2:20 PM

The rate is probably 1% of the boat's value (purchase price less a depreciation factor).

supreme_rob 03-13-2006 4:16 PM

I'm in Santa Clara county and just looked into this and made all the phone calls to find out what to expect.I bought my boat in august of 2005. The person I talked to at the county office told me I should expect my bill in july of 2006 for the amount of approx.$400 The out the door price on my boat was $34,300. I asked my tax guy if this was deductable and he said absolutely and it is considered a property tax.

twakess 03-13-2006 4:23 PM

Rob, you are correct on property tax for your boat. A lot of people over look that and also DMV fees on their returns.

sacdeep 03-14-2006 9:33 AM

Thats why people need more than one boat, more tax deductions

03-14-2006 12:23 PM

The January 1 value is multiplied by the tax rate (usually 1% plus voter approved indebtedness in the county). The current year unsecured tax rate is the prior year secured (real estate) rate in LA County, I do believe. <BR>

trump 03-14-2006 9:03 PM

Last year I send my AZ registration fee a few weeks before the increase took effect. I have been thinking about registering in CA, but not only will I have to pay a 1% property tax, I would most likely pay a CA sales tax too. I know I paid a sales tax when I registered my trailer in CA. Another option I'm considering is to use a friend’s AZ address. I think using a friend’s address is my best bet. Any CA residents using an AZ address?

03-15-2006 8:13 AM

Senate Bill 1100 included in the '04-05 budget replaced the 90 day test with a 12 month test...so, buy a boat outside CA and bring it into CA during that 12 months and it's subject to a Use Tax (equivalent to the Sales Tax Eric referes to above). That provision lapses on 6/30/06...it might go back to the 90 day test, or not. My guess is NOT as it brings more money to CA. Probably not worth it for a single 40K boat, but there are Use tax exemptions for transfers involving Corp's, LLC and Revocable Trusts. There are a number of sites, online, that address this when buying an aircraft...a legitimate way to avoid taxation, without misrepresenting the situs of the vessel.

bdavis 03-15-2006 10:40 AM

My boat has been registered in AZ for the last 2 years so I wont be paying sales/use tax. I wonder how they will value my boat though since there is no value on my previous registration. Hopefully it will be whatever I tell them, wishfull thinking.


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