USCG Vessel Documentation. Anyone do it?

Mine was documented when I bought it and continues to be documented under a new name and hailing port. No sales tax or registration fees as the state is not involved. I do pay a "water ways" tax to the city where my slip is located which is $xx per foot.
"A documented vessel cannot be titled in any state"
Easy transfer form on the back of the document.
 
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highslice said:
I saved over $2,000 in sales tax by documenting. Still have to register with the state every 2 years and display small registration stickers.
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I'm curious, how are you guys avoiding sales tax via federal documentation? Seems like the states still want their money either way?
 
Stee6043 said:
I'm curious, how are you guys avoiding sales tax via federal documentation? Seems like the states still want their money either way?
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Most if not all do. I know in NY and MD they want there reg money either way. But I will say, in MD because of being documented I didn't have to pay sales tax again because my NY sales tax was great then what MD's would have been. Crazy law right?
 
Stee6043 said:
I'm curious, how are you guys avoiding sales tax via federal documentation? Seems like the states still want their money either way?
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State dependent I believe. In TX with a federal documented boat I still had to pay sales tax on the purchase. Every other year I do need to re-register the boat to get a sticker for it but I do not need to number the boat.
 
dmorris800 said:
State dependent I believe. In TX with a federal documented boat I still had to pay sales tax on the purchase. Every other year I do need to re-register the boat to get a sticker for it but I do not need to number the boat.
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This has been my experience, whether or not you pay sales tax is dependent on the state. In FL we had to pay sales tax but it was capped. Still have to maintain registration and display a sticker, but do not display numbers.

Some states have reciprocal agreements - for example Maryland-Florida.
 
In GA, if you purchase from a private owner, no sales tax. If from a Broker or business, you pay the sales tax. Regardless of registration, interest is tax deductible on a loan. CG documentation prevents the numbers on the bow, however there is a sanitation sticker and a state registration sticker that goes on the side windows...

Bennett
 
I paid sales tax on the purchase, I do not have to pay an annual property tax though. That seems to vary by city/county in Virginia.
 
dmorris800 said:
State dependent I believe. In TX with a federal documented boat I still had to pay sales tax on the purchase. Every other year I do need to re-register the boat to get a sticker for it but I do not need to number the boat.
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Same here. NY’s sticker is good for 3 years.

Writing that sales tax check hurt, even with the cap.
 
My boat came from a seller in SC. I owned it in Jan 1 when the county property tax clock starts, but I hadn’t moved the boat to NY yet. They tracked me down in NY wanting their annual personal property tax. I was exempt, they were damn efficient about collecting.
 
Bruceflinch said:
Looked at a 34 foot express cruiser today. Owner was telling me it was a US Coast Guard documented vessel. Talked about right offs , tax advantages, registration costs, etc.

so does anyone here do it?
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Reading through all of the "answers", it doesn't sound like anyone really knows the advantage to Documenting the vessel. State requirements aside, as every state will be different, there are good protections for the vessel and crew if the vessel is documented. If you are like us and intend to use the vessel internationally and inter-state -
  • Proof of ownership and nationality, which is recognized universally by customs officials all over the world.
  • Easier clearance when entering and leaving foreign ports.
  • Protection and status that comes from the US Government.
  • Access to preferred ship mortgages.
  • Recognition by name and hailing port rather than state registration number.
  • Higher level of legitimacy and legal recognition, which works in your favor when you are traveling internationally.
 
ttmott said:
Reading through all of the "answers", it doesn't sound like anyone really knows the advantage to Documenting the vessel. State requirements aside, as every state will be different, there are good protections for the vessel and crew if the vessel is documented. If you are like us and intend to use the vessel internationally and inter-state -
  • Proof of ownership and nationality, which is recognized universally by customs officials all over the world.
  • Easier clearance when entering and leaving foreign ports.
  • Protection and status that comes from the US Government.
  • Access to preferred ship mortgages.
  • Recognition by name and hailing port rather than state registration number.
  • Higher level of legitimacy and legal recognition, which works in your favor when you are traveling internationally.
Click to expand...

Tom the OP was asking about tax benefits primarily and why the answer went as such. But great list of bennies. Your third point has a lot of weight and one I almost mentioned.
 
SKybolt said:
Tom the OP was asking about tax benefits primarily and why the answer went as such. But great list of bennies. Your third point has a lot of weight and one I almost mentioned.
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Oh, heck, you are right. My bad....
So, there are no Fed tax advantages to documenting. But there may be some State level benefits.
 
ttmott said:
Oh, heck, you are right. My bad....
So, there are no Fed tax advantages to documenting. But there may be some State level benefits.
Click to expand...

Right, possibly second mortgage stuff if that can apply or home office if that works out. My wife (CPA) is pretty good with this crap and we don't take the boat for anything. We do take the slip we bought however, but that's different.
 
ttmott said:
Reading through all of the "answers", it doesn't sound like anyone really knows the advantage to Documenting the vessel. State requirements aside, as every state will be different, there are good protections for the vessel and crew if the vessel is documented. If you are like us and intend to use the vessel internationally and inter-state -
  • Proof of ownership and nationality, which is recognized universally by customs officials all over the world.
  • Easier clearance when entering and leaving foreign ports.
  • Protection and status that comes from the US Government.
  • Access to preferred ship mortgages.
  • Recognition by name and hailing port rather than state registration number.
  • Higher level of legitimacy and legal recognition, which works in your favor when you are traveling internationally.
Click to expand...
Can you clarify what you are insinuating with quotes around 'answers'?

I thought mine, as well as the others are good answers. I don't think the average user here intends to use their vessel internationally and interstate. I assumed the OP already did his Coast Guard research and was seeking layman's, Average Joe, reasons for doing it.

Actually, re-reading his original post his question was "so does anyone here do it?" Not, "tell me why" so most of us gave "answers".

My answer: No
 
My boat was documented when I bought it and I did the paperwork to transfer it (vs pay someone $500 or whatever). The CG site is not the easiest to follow, but I got it done correctly the first time.

And yes, still had to pay state sales tax in MI.
 
mrsrobinson said:
Can you clarify what you are insinuating with quotes around 'answers'?

I thought mine, as well as the others are good answers. I don't think the average user here intends to use their vessel internationally and interstate. I assumed the OP already did his Coast Guard research and was seeking layman's, Average Joe, reasons for doing it.

Actually, re-reading his original post his question was "so does anyone here do it?" Not, "tell me why" so most of us gave "answers".

My answer: No
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Sheesh - really?

Read on - I mis-read his post thinking the OP was more interested in the reasons for documenting. No one was addressing the technical and legal aspects of documenting with the Federal Gov and not having title in a state.
Some aspects to @Bruceflinch 's boat is we do not know what state it is registered so no one knows the state requirements he may be facing if he removes documentation. Opining on one's advantages/disadvantages in their state does what? Secondly, the only federal (IRS) benefit from a monetary perspective is if the boat is a legit business, and that has little to do with documenting other than Documentation may be required for the type of business one intends.
 
ttmott said:
Sheesh - really?

Read on - I mis-read his post thinking the OP was more interested in the reasons for documenting. No one was addressing the technical and legal aspects of documenting with the Federal Gov and not having title in a state.
Some aspects to @Bruceflinch 's boat is we do not know what state it is registered so no one knows the state requirements he may be facing if he removes documentation. Opining on one's advantages/disadvantages in their state does what? Secondly, the only federal (IRS) benefit from a monetary perspective is if the boat is a legit business, and that has little to do with documenting.
Click to expand...
Thanks for the clarification

I assumed the boat was documented in California, since he told us that's where the boat is and where he's from.

More on the subject Thread 'Document with the US Coast Guard or not' http://www.clubsearay.com/index.php?threads/document-with-the-us-coast-guard-or-not.104014/
 
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