# Boat Registration USA



## neverknow (Feb 2, 2011)

Hello, We are a few yrs away from buying a cruising sail boat. However we have a question that came up when calling and checking on what boat insurance might cost. They asked us what state we plan to have the registration in.

We have read a few places where ppl suggest Delaware? But our plans will take us all over the US east and gulf coast before heading south through the Islands and maybe beyond that. We don't really plan to call any state home for more than a few weeks at a time.

What are most cruisers doing? Are any states better than others to call home (for boat reg)? 

Other questions along these lines have to do with taxes both sales and property. Are some states cheaper than others?

What happens if we buy a boat in one state and reg it in another. Will we get hit twice for sales tax? Indiana tries to do that.


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## Dog Ship (Sep 23, 2011)

To be honest I don't know the first thing about US boat registration, but I can tell you that in Canada you register your boat as a Canadian vessel with Transport Canada and then lisence it in your home province. 
The marina in Sidney B.C. where I keep my boat in is full of American boats. When you talk to the owners most will lie to you and say, "We keep our boat here because it is just so beautiful up here". Yah sure.
Some are more honest and will explain to you that the US tax laws are why they are here. 
I have not counted them but I will guess that there are more American boats in our marina than there are Canadian ones. They are from everywhere, California, Delaware, Nevada, Florida, Washington, Oregon you name it. 
I don't know what's going on down there as far as your tax laws go but it's quite apparent that it is very expensive. Why would you leave a Swan 61 sitting up here, rotting away, unused, when it's registered in Pensacola FL.


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## tempest (Feb 12, 2007)

Here's an article that might help, with taxes: ( I'm not sure how current it is)

How to Avoid Boat Tax - Legally

And Boat U.S. : http://www.boatus.com/gov/state_boat.asp

United States Sales Tax Site: Table of Sales Tax Rates

I purchased my boat in Maryland and registered it in NJ, I only paid sales tax to NJ. 
Even though my boat is federally documented, I still need to pay annual registration fees to NJ. ( so, you may want to research, which states do not require documented vessels to be annually registered).

With regards to insurance, you'll need to talk to several companies to see their coverage area. Boat US covers me on the east coast from Canada to Jacksonville Fla. If I want to head further south, I need to get a rider policy. Last time I checked it was an additional $1,000. Some policies may stipulate that you need to be above a certain latitude by a particular date.

Some states will charge you a use tax if you spend more than a specified time in their waters.


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## sailingfool (Apr 17, 2000)

Sales and use tax varies by state. RI has none, whereas neighboring Massachusetts has a 6.25 sales/use tax. Assuming you are federally documented, you probably will need to register in a state and obviously one with no sales/use tax would be the choice.

However, states you transit will have rules related to periods of residency (usually 90 or 120 days) where their registration requirement kicks in, and they want to apply their use taxes, if you haven't previously paid somewhere. Most states have reciprocity agreements that credit you for previously paid sales/use taxes.

There are numerous threads on SN about sales and use taxes. States are very aggressive about these taxes, and will charge penalties and interest when they decide the tax might have been due and not paid...the boater is presumed guilty unless you can prove conclusively that a tax is not due. 

When you buy a boat it's going to be in some state, and you likely wont be moving it for the first 90 days. My opinion is to register it wherever you first keep it, then deal with other states as you transit them. If you end up obligated for a use tax somewhere, just pay it...


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## sck5 (Aug 20, 2007)

"and they want to apply their use taxes, if you haven't previously paid somewhere"

actually, some of them will charge you if you stay long enough whether you paid somewhere else or not. It varies by state and depends on where the boat actually is and for how long. You can usually stay under the radar if the boat is on the hard but if it is in the water, especially at a marina, some states will have their tax people patrolling to see that all boats appearing to be resident (for 90 days or whatever) have paid the tax.


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## TQA (Apr 4, 2009)

In some parts of the world eg. Martinique you must have USA federal registration. State registration is not accepted.


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## sailingfool (Apr 17, 2000)

TQA said:


> In some parts of the world eg. Martinique you must have USA federal registration. State registration is not accepted.


FWIW the term is Federal documentation...


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## Ulladh (Jul 12, 2007)

You will still need a dirt address for things like; Federal and State taxes, passport, driving license, insurance, voting,....

Perhaps a relative or mail forwarding service. This address may, if tax and registration fees are reasonable, also be the home state for the boat even if the boat is never there.

USCG documentation if you plan to visit other countries, otherwise state registration is all you need.

Keep originals of all fees and taxes paid, registration and title, and original purchase information with you to show to other state tax authorities. Have a friend or relative keep a hard copy and .pdf of all documents to forward if needed.


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## peikenberry (Apr 26, 2000)

No one has even mentioned that the Federal law on registration (state registration, not USCG Documentation) says the boat must be registered in the state of principle use. Typically this means either where you are a resident, or if you keep your boat in another state, the state where the boat is kept. Most States have rules about how long you can keep the boat in their state without having to give them a pound of flesh. So first you have to determine what is the state of principle use. the look up their rules. See National Assoc Of State Boating Law Administrators, - National Association of State Boating Law Administrators

If you document the boat, you will still have to pay the state whatever taxes they may have for boats. This may include sales tax and personal property tax, and fees.


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## peikenberry (Apr 26, 2000)

No one has even mentioned that the Federal law on registration (state registration, not USCG Documentation) says the boat must be registered in the state of principle use. Typically this means either where you are a resident, or if you keep your boat in another state, the state where the boat is kept. Most States have rules about how long you can keep the boat in their state without having to give them a pound of flesh. So first you have to determine what is the state of principle use. the look up their rules. See National Assoc Of State Boating Law Administrators, - National Association of State Boating Law Administrators

If you document the boat, you will still have to pay the state whatever taxes they may have for boats. This may include sales tax and personal property tax, and fees.


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## SHNOOL (Jun 7, 2007)

Ok, I can't answer, only question... I registered my boat in my state. Is there documentation I need other than, title, and registration from my state, if I sail open waters?


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## peikenberry (Apr 26, 2000)

That depends. If you are going to Canada, the Bahamas, Mexico, they will accept your state registration. if you are going farther afield they want US Documentation, but the question arises, how big is the boat? In order for a boat to be documented with the USCG it must measure (using the Coast Guards rule) 5 net tons. Most sailboats under 30 feet can't make it unless they are heavy displacement and broad abeam.


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## neverknow (Feb 2, 2011)

peikenberry said:


> That depends. If you are going to Canada, the Bahamas, Mexico, they will accept your state registration. if you are going farther afield they want US Documentation, but the question arises, how big is the boat? In order for a boat to be documented with the USCG it must measure (using the Coast Guards rule) 5 net tons. Most sailboats under 30 feet can't make it unless they are heavy displacement and broad abeam.


We plan to go all over, hopefully farther than to Canada, the Bahamas, Mexico.

We don't have the boat yet but we are sure it will be at least 36 ft. I was looking around the web yesterday and saw some companies offering to help get a boat documented. Is a company required or can you do it yourself?


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## peikenberry (Apr 26, 2000)

You can do it yourself. See USCG National Vessel Documentation Center, Home Page It can be a bit daunting and time consuming. The documentation services can help smooth the experience but they, of course, charge a fee over and above what the Coast Guard charges. I have worked with some of them and most are very helpful. It just depends on whether you have the time and patience or would rather have someone else deal with it.

If you are buying a used boat that is already documented it gets easier. If you buy a used boat that has never been documented, insist that the seller have all the paperwork in order, and know who the previous owners are because you are going to have document the history of ownership, all the way back to the builder. Specifically ask for a (this form has several names) a Builder's certificate, or Certificate of Origin, Or Manufacturers Statement of Origin. If the boat was document previously the seller should have Form CG 1261 Builders Certificate. http://uscg.mil/hq/cg5/nvdc/forms/cg1261.pdf Plus you will need a Bill Of Sale (there's a CG form for that too) and a completed Simplified Measurement Application (CG-5397)

Anyway, discuss this with the seller of any boat you may be interested in. If they have documented their boat they will know what it's like. If they haven't a clue then maybe you should think it over.


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## neverknow (Feb 2, 2011)

peikenberry said:


> You can do it yourself. See USCG National Vessel Documentation Center, Home Page It can be a bit daunting and time consuming. The documentation services can help smooth the experience but they, of course, charge a fee over and above what the Coast Guard charges. I have worked with some of them and most are very helpful. It just depends on whether you have the time and patience or would rather have someone else deal with it.
> 
> If you are buying a used boat that is already documented it gets easier. If you buy a used boat that has never been documented, insist that the seller have all the paperwork in order, and know who the previous owners are because you are going to have document the history of ownership, all the way back to the builder. Specifically ask for a (this form has several names) a Builder's certificate, or Certificate of Origin, Or Manufacturers Statement of Origin. If the boat was document previously the seller should have Form CG 1261 Builders Certificate. http://uscg.mil/hq/cg5/nvdc/forms/cg1261.pdf Plus you will need a Bill Of Sale (there's a CG form for that too) and a completed Simplified Measurement Application (CG-5397)
> 
> Anyway, discuss this with the seller of any boat you may be interested in. If they have documented their boat they will know what it's like. If they haven't a clue then maybe you should think it over.


Wow thanks for the info, we had no idea that this could possible a deal breaker. We'll be sure to ask once we find a boat we like.


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## sck5 (Aug 20, 2007)

it isnt quite right that a documented boat needs to do a state registration also. what you need is to pay the state tax which isnt the same thing as a state registration. For ex. my boat is documented and lives in MD. I paid the MD sales tax and pay the nominal fee for a sticker every 2 years but it doesnt have a MD registration.


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## peikenberry (Apr 26, 2000)

Sck is right. If you Document the boat you don't need state registration, but you still have to pay your taxes and get a sticker.


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## cruisingdream (Feb 7, 2007)

the sticker is the registration fee , you just dont have to put the registration numbers on the vessel for a coast guard documented vessel


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## bubb2 (Nov 9, 2002)

cruisingdream said:


> the sticker is the registration fee , you just dont have to put the registration numbers on the vessel for a coast guard documented vessel


 the same way it's done-here in NY. I just looked at the card that comes with the stickers it does have a registration number on it. that I don;t have to display on my boat


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## Sailonguy (May 5, 2011)

*All states are different - California is expensive*

California is the worst on taxes, I am now having to pay 9.25% on the purchase price of the boat i bought last year. Sales tax becomes due the end of the 13th month after you purchase the boat, and they find out about the sale thru the coast guard documentation office or the state department of motor vehicles depending on how its registered (US or State).
The boat US table in the earlier post is not correct with respect to California tax, I think it doesn't count local county and city sales tax, based on where you keep the boat.

Sales tax is one time, but also the county where your boat is berthed applies a yearly property tax based on the price you paid plus the tax (yes, the greating state of CA taxes the tax!) then to top it off, they appear to add "value" to your property that seems to include the boat slip you rent and then tax you for that too!... although this yearly tax is not as painful as the sales tax, the property tax is around 1.5% of the price of the boat. This property tax and sales tax is independent of the sate registration. If your boat is documented by the US Coast Guard, as mine is, in California, you do not need to register the boat per Ca law. I believe this to be a state specific issue, as I recall my coast guard paperwork indicated that a state still has the right to require registration if they chose. So, at least in California at this time you don't register with the Department of Motor Vehicles if you have a US documented boat, and you don't get a sticker or number to put on your boat.
As a side note, I have also read horror stories about people who have moved their boats but the counties still put property tax claims on them even after they move out of their jurisdiction....


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## Overstag (Jan 1, 2008)

What taxes do I have to pay if I bring my Dutch boat, that is registered in The Netherlands to Florida or the Chesapeake? I would like to keep it there for a while to look around. I will not become a US resident. Just use the boat for a couple of months per year.


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## Squidd (Sep 26, 2011)

I just bought a boat in Washington DC.. It is USCG Documented and was Registered in Maryland...(I have all the paperwork) 

I hauled it to the Midwest (Great Lakes)...Probably won't be doing any "world traveling" (cept maybe Canada) ...

Is there any advantage to maintain the Documentation...(transfer of ownership and Port of call) as opposed to just getting Wisconsin registration..? From what I see of the paperwork, documentation will cost me a few bucks...whats the advantage (if any) to me..?


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## neverknow (Feb 2, 2011)

Squidd said:


> I just bought a boat in Washington DC.. It is USCG Documented and was Registered in Maryland...(I have all the paperwork)
> 
> I hauled it to the Midwest (Great Lakes)...Probably won't be doing any "world traveling" (cept maybe Canada) ...
> 
> Is there any advantage to maintain the Documentation...(transfer of ownership and Port of call) as opposed to just getting Wisconsin registration..? From what I see of the paperwork, documentation will cost me a few bucks...whats the advantage (if any) to me..?


What state did you bring it to. We are in indiana and have been forced 2 times to pay sales tax on boats we have bought in other states even though sales tax was paid in the other state. Double taxed, it's been a few yrs since the last time it happened (2007) and we have heard that might have changed?


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## Squidd (Sep 26, 2011)

I'm in Wisconsin...

I bought the boat on an E-Bay auction, so I didn't pay sales tax, I imagin I'll be paying with state registration..


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