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.
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