Do you need to register/pay taxes on documented vessels in SC?

Other than the tax issue,does a documented boat based on an inland fresh water lake in SC need to have a SC registration?
 
Thought I'd pass on my experience here. I live in Beaufort County. When I bought the boat I documented it with the USCG, and therefore was not required to register it with the state of SC. The Beaufort County auditor does a check with the USCG periodically for new documented vessels in their county. Once that check was done I got an "application" in the mail to fill out and return all the boat's vital information. Included in that was what I paid for it and what I valued it at. After I returned it I got my first annual property tax bill. Interestingly, their assessment was exactly what I stated as its value (which I thought I really lowballed, but I guess I could have gone lower - ha!). They also automatically figured out that my boat was capable of being a second home and the assessment was at the 6% second home rate and not at the 10.5% recreational vehicle rate. So I did not have to go to the auditor's office to apply for the second home rate - that was good news. All totaled now - my home and my boat together are still half what I paid for property tax on just my house when I lived in Northern Virginia.
 
Glad to hear that Bill!! My county Tax Assessor didn't even know what a Documented Vessel was until I showed up down there 5 years ago. They still don't seem to understand State Tax laws regarding boats in general. There is no one at the state level to escalate to either so I am stuck paying all of 2015 property taxes on the boat I sold in March even though the buyer signed a State Tax form stating he accepted tax liability for his pro-rated portion of the year.
 
Glad to hear that Bill!! My county Tax Assessor didn't even know what a Documented Vessel was until I showed up down there 5 years ago. They still don't seem to understand State Tax laws regarding boats in general. There is no one at the state level to escalate to either so I am stuck paying all of 2015 property taxes on the boat I sold in March even though the buyer signed a State Tax form stating he accepted tax liability for his pro-rated portion of the year.

I've lived in NC and GA, neither state pro-rated property taxes except on the sale of real estate. Personal property (not cars or realestate) was based on who owned it on Jan 1st of each year - you own it Jan 1, sell Jan 2, you pay 100% of the property tax. In NC, they get this information from the listing form you fill out each Jan. My experience has been you have a choice (or at least can get away with) listing the property location - where you live or where the property is located - I've done it both ways. I live in Mecklenburg County, City of Charlotte, so for me it's always cheaper to list it where the boat is located. Currently on Lake Norman in Catawba County - taxes there are about 1/3 what they would be where I live. On my current bowrider, it's really not much $$ regardless, but on a big boat it can add up.

As far as marinas reporting to the tax office - I don't know, I've heard all kinds of stories. Personally I have had my boat at two different marinas on Lake Norman, I have never asked, but I don't think either reported my boat to the tax office. In both cases I listed the boat on Jan 1 the year after I moved it to the marina - then I got a tax bill later that year.
 
A couple of clarifications:

- the county auditor USCG check was not annual. It was at least two years since the previous check

- They did not check for just newly documented boats. They checked for all documented boats and sent the questionnaire/form to all owners of boats documented in the county. Looks like they use it to start the new people and update the records on the current tax payers.
 
I've lived in NC and GA, neither state pro-rated property taxes except on the sale of real estate. Personal property (not cars or realestate) was based on who owned it on Jan 1st of each year - you own it Jan 1, sell Jan 2, you pay 100% of the property tax.

In SC there is a form that can be filled out at the time of the closing where the seller assumes their portion of pro rated taxes (similar to how closing real estate works). This is optional on the buyer's part and only applies to Watercraft and Airplanes. The county tax office is supposed to take the form and create 2 tax bills based on the date the form was effective.
 
The old dreaded SC forms....I don't miss living in SC.

My tax fiasco started when I dry stacked my 240 at Westport Marina, in NC, and still owned a home in SC. Westport reported to SC that my boat was there in the dry stack. Still not sure how I got stuck paying taxes in both states, but that's in the past and done.

Now I live in NC, Lincoln County. My Chris Craft is in a slip in Catawba County, my marina MidwayMarina, reports to Catawba County that it is in their county. Lincoln forgives the taxes, and I pay Catawba county taxes. Like it should work.

My Sea Ray is kept at my house in Lincoln County, on a trailer under a covered shed. Lincoln county has pictures of my Sea Ray in its building. I pay taxes on the Sea Ray to Lincoln County. I claim the Sea Ray as a second residence and take the interest payments off my taxes.

In NC, the taxes seem reasonable, and no forms are necessary to receive a "tax break". I like living in NC, untill I retire and can move home to Florida! haha
 
Glad to hear that Bill!! My county Tax Assessor didn't even know what a Documented Vessel was until I showed up down there 5 years ago. They still don't seem to understand State Tax laws regarding boats in general. There is no one at the state level to escalate to either so I am stuck paying all of 2015 property taxes on the boat I sold in March even though the buyer signed a State Tax form stating he accepted tax liability for his pro-rated portion of the year.

Jason

Not sure if you sold your boat thru LWM brokerage but they were able to get that cleared up for me with the county so it was pro-rated for only three months of ownership. (I also had the form signed by the buyer and the county rejected it because it wasn't notarized). Contact Brandy at LWM.

Dave
 
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I have a similar question. I purchased a 2006 340 sundancer that was registered in Canada but kept in Plattsburgh Ny. I live in Ct but I am keeping the boat in colchester vt. I own no property in Vt. When I register it in Vt in the spring do I have to pay Vt sales tax? The boat is not Uscg documented.
 
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Not sure how that will all fall out, but I would think you pay taxes on the boat where it is....or where it is registered. Maybe someone in VT or Ct will chime in.
 
Jason

Not sure if you sold your boat thru LWM brokerage but they were able to get that cleared up for me with the county so it was pro-rated for only three months of ownership. (I also had the form signed by the buyer and the county rejected it because it wasn't notarized). Contact Brandy at LWM.

Dave

Thanks Dave! I will do just that. Not holding out much hope though. They did not know the law, even when I showed them an excerpt from State Tax Code explaining the process. Unbelievable but no one to escalate to. Spoke with SC Dept of Revenue and they agreed with me but said there was really nothing they could do as the counties manage these things on their own.
 
I have a similar question. I purchased a 2006 340 sundancer that was registered in Canada but kept in Plattsburgh Ny. I live in Ct but I am keeping the boat in colchester vt. I own no property in Vt. When I register it in Vt in the spring do I have to pay Vt sales tax? The boat is not Uscg documented.
Looks like you do not, based on item #2 in the attached: http://dmv.vermont.gov/registrations/offroad/new
 
Thanks Dave! I will do just that. Not holding out much hope though. They did not know the law, even when I showed them an excerpt from State Tax Code explaining the process. Unbelievable but no one to escalate to. Spoke with SC Dept of Revenue and they agreed with me but said there was really nothing they could do as the counties manage these things on their own.

Brandy is the one who got mine straightened out.
 

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