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-   -   Registering boat in different state for tax purposes (http://www.wakeworld.com/forum/showthread.php?t=799347)

ldr 07-31-2013 9:52 AM

Registering boat in different state for tax purposes
 
Has anybody done this?

I swear I remember reading at one point that Californians were registering their boats in Arizona to get out of an annual luxury/boat/property tax.

bmock50 07-31-2013 10:04 AM

I know tons of people who have done it. I'm from Kansas and some of my friends have their boats registered in CO, OK, and AR. Not quite sure how they did it, but it is possible and can save you quite a bit of money.

bryce2320 07-31-2013 10:18 AM

In KS, if you use your boat or store it more than 50% of the time out of state, you can register it in that state. Everyone here registers there boat in Oklahoma.

mallenger 07-31-2013 10:21 AM

Long story short = Tennessee closed this loop hole (somewhat). I was living in South Carolina (has property tax) and moved to Tennessee (doesn't have property tax). I was thinking that I wouldn't have to pay property tax anymore and my tax situation would get significantly better because there is no property tax. Well you have to pay Sales tax on the item (luxury) you bring into the state. So I had only paid $300 dollars originally towards sales tax in SC when I purchased the boat... when I moved to tennessee they basically got me for 10% sales tax minus the $300 i had paid to SC. Now I won't have to pay future property taxes on the boat, but it was very painful to pay sales tax on a 2 year old boat out of the blue.

ldr 07-31-2013 10:33 AM

Anybody in California do this?

My dad was telling me today about the $500 in taxes that he needed to pay on his boat next month. It's now a 7 year old boat and he says he pays this every year.

shawndoggy 07-31-2013 10:37 AM

ahh yes tax evasion....

make sure you check the law of your home state, especially if that's where the boat is kept. I know for a fact here in NV that the state tax authorities have sought to identify foreign-registered boats, rvs and trailers at big storage warehouses and the like. Big fine if you get caught (3x original reg fee + sales taxes (if applicable) + penalties + interest). Seems to be really popular on the quarter million dollar diesel pusher rvs.

simplej 07-31-2013 10:43 AM

Most states up here say that you can't leave your boat in another state in the water more than x amount of days to prevent tax evasion

davez71 07-31-2013 10:45 AM

Create a LLC out of Delaware and you won't have to pay taxes. My boat has Delaware numbers on the side of it

DenverRider 07-31-2013 10:48 AM

They get you one way or another. You might think that because your state is more "conservative" that you pay less tax but then you end up paying it somewhere else. Lived in MN and now CO. The registration is more expensive in MN but once you pay registration you can go on most of the lakes for free. In CO registration is cheap with no sales tax for the boat (only the trailer) but show me a lake that you can ride here where you don't need to buy a pass or membership of some kind. Ask any Floridian how much cheaper it is to live there because they don't have a state income tax. Every state has bills and they all have to pay those bills no matter what political affiliation they generally associate with.

slipknot 07-31-2013 10:48 AM

AZ has a non resident boat reg and it is triple what it was 3 years ago, so they tried to close the loophole somewhat. But it you keep your boat in another state, you can provide your lease/vacation home info to the tax collector.

My boat is not regd in CA or AZ:D:D:D

I use my boat 50% of the time in Lake Billy Chinook.

ldr 07-31-2013 11:28 AM

Some interesting links

http://www.performanceboats.com/pb-o...-question.html

http://www.azgfd.gov/pdfs/outdoor_re...ION%20FEES.pdf

http://www.azgfd.gov/pdfs/outdoor_re...cation2013.pdf

ldr 07-31-2013 11:36 AM

@David Curtis

I've been following up on your post and it looks interesting. A quick google search found multiple law offices that specialize in creating LLC's specifically for the purpose of registering boats/yachts in Delaware.

http://www.boat-registration.us/Down...20DELAWARE.pdf

http://www.flagsofconvenience.com/page.php?pID=77

phathom 07-31-2013 2:15 PM

I know that WA only has a sales tax when you buy a vehicle, but they make you pay registration and tabs not only on the boat, but the trailer.
In OR, that makes you pay registration on the boat, but not the trailer. Because of this, I know some people who still pay their renewal (with a different one time mailing address) every year in OR to avoid having to tag a trailer every year for a boat they store in WA.
Then again the Columbia separates the two states and majority of the boating is done there in this "international waters" location, so technically they do use it in OR and WA equally, but the storage is up here.

wakebrdr94 07-31-2013 3:12 PM

For The living in CA and registering in AZ, it would depend on the value of your boat on wether it makes sense for you to do this or not. In CA you pay $20 a year for registration, then a "supplemental property tax" which is 1% of the value of the boat. State values my boat at around 60k, so I would get a tax bill of $600 per year. (Amazing how boats don't depreciate with the state assessor). In AZ a non resident registration is based on the length of your boat. (I register in AZ). My registration there is $239 a year. Still saving me $400 a year, so for me it's worth it. I use my boat in Parker a lot, but do visit lakes here and I've never had an issue. The trailer is registered in CA, as it is two different items. If the value of your boat tax would be less than the non resident registration, not worth doing. BUT, AZ does not have sales tax on buying a used boat, so if you bought a boat, registered it there right away, you avoid the sales tax

Fourspeednup 07-31-2013 3:44 PM

If you register the boat out of state but regularly tow through your home state be sure to check the rules on trailer registration. It's not uncommon to see boats registered to one state while the trailer is registered in another.

FYI - A lot of $500k+ baller boats are registered in MN ;)


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