Please select your home edition
Edition
Naiad/Oracle Supplier

American boaters- are you in hot water with the Tax Man?

by Boat US/Sail-World on 16 Sep 2012
Are you staying in the same state too long? .. .
Staying too long in one place can ruin a good thing. At least that's the case with American boaters making lengthy journeys, who are finding themselves targets of cash-hungry states when they stay too long and are subject to various taxes.

But how can boaters prevent overstaying their welcome? Boat Owners Association of The United States (BoatUS) has online state tax information at www.BoatUS.com/gov/states that will help keep them on the right side of the law and out of hot water with the taxman.

In most US states, a privately-owned recreational boat must be registered in the state where it is principally used, and any sales and use taxes paid to that state. A problem arises when the boat leaves this principal-use state and enters a new one, for a long visit, extended cruise or lengthy repairs. This could include 'Snowbirds' - boaters who head south each winter in search of warmer climates.

BoatUS says boaters may be subject to various sales, use, excise, or property taxes when they remain in one location for a consecutive number of days, or over-stay their visit for a certain number of aggregate days per year. This 'grace period' is often 60 to 90 days but as little as 30 days in two states (CO, NH). Also, if the principal state's sales and use tax is not comparable to the tax in the state the boat is visiting, the second state can levy their own tax making the boat owner liable for the difference.

To help boaters understand this issue, BoatUS' online map at www.BoatUS.com/gov/states highlights state sales and property tax rates with links to state tax departments, as well as registration information and 'grace periods'.

In the past, BoatUS has heard about tax authorities walking the docks, inspecting marina records and aggressively enforcing tax codes.

'We believe boaters should pay their fair share of taxes, and travel to other states with their eyes open about timelines and potential tax assessments,' said BoatUS President Margaret Podlich. 'Boaters should keep record keeping such as log entries, marina and fuel receipts or repair contracts while traveling. These documents are critical for boaters to keep, and are often the only way to fight an unjust tax bill,' added Podlich.

About BoatUS:

BoatUS is the nation's leading advocate for recreational boaters providing its over half million members with government representation, services such as on-the-water boat towing, roadside assistance and specialized boat insurance programs, boating safety, damage avoidance, clean water and consumer advocacy efforts as well as angler services and money saving benefits. For membership information visit
Mackay BoatsPredictWind.com 2014Helm Events 660x82

Related Articles

Two Oceans, One Rock in a Proa.
A Proa is a multihull sailboat common in the South Pacific and Indonesia. They have two different sized, parallel hulls. A Proa is a multihull sailboat common in the South Pacific and Indonesia. They have two different sized, but parallel hulls. Jzero, the Proa pictured here is a shunting boat and does not tack. Ryan Finn is launching the modified 36-foot Proa, so as to accomplish the fastest-ever, nonstop solo-sail, around the Old Clipper-ship Cape Horn Route from New York to San Francisco.
Posted on 2 Dec
Predictwind release improved racing and cruising routing function
PredictWind has released a major upgrade to its Routing function, taking a much more graphic and interactive approach PredictWind has released a major upgrade to its Routing function, taking a much more graphic and interactive approach to what has been a black art of weather routing, used to chose the fastest route for racers or most comfortable route for cruisers.
Posted on 28 Nov
Only room for one at the top
The results of RMIT's (Royal Melbourne Institute of Technology) independent testing are in. The results of RMIT's (Royal Melbourne Institute of Technology) independent testing are in. Zhik® is the market leader in waterproof durability with a new standard that replicates the real world sailing environment and conditions. It is an astounding four times more so than the previous leader.
Posted on 28 Nov
Parlier reigns supreme in Hydrofoil Worlds
The south westerly breeze kicks over the land mass over north facing beach, making for flat water despite strong wind. Whatever the shortcomings of the Fremantle Doctor on the first day of competition, were made up for in spades on day two, when the wind kicked in early at 15 knots and quickly built to 18 with gusts as high as 26. The Rockingham course is perfectly suited to such conditions. The south westerly breeze kicks over the land mass over the north facing beach, making for flat water despite strong wind.
Posted on 27 Nov
Fourth Blog from on board Perie Banou II
Oh no - not the coffee cup Oh no - not the coffee cup - Jon keeps us all entertained as he approaches Reunion Island. The B&G chartplotter tells me since leaving the pleasant mid Western Australian town of Carnarvon (by world standards, an isolated town), that I have sailed some 2559 NM and have 751nm to go to Le Port Reunion Island. French. Reunion is a Suburb (department) of Paris. Population 844,000.
Posted on 23 Nov
Third Blog from onboard Perie Banou II
Wind over the last week has been quiet and mild - Trade Winds from South East and South South East. It is 0830am here. 1030 in Western Australia. Windy. Rather Windy. Wind over the last week has been quiet and mild - Trade Winds from South East and South South East. Barometer 1018 to 1020 whatever they are. Last night I tapped the barometer and it sorta went oops. 1015hPa. Blimey.
Posted on 18 Nov
Second Blog from onboard Perie Banou II
This is day 13 since leaving the mid Western Australian town of Carnarvon. Remote region. Beautiful town. This is day 13 since leaving the mid Western Australian town of Carnarvon. Remote region. Beautiful town. Kept cooler by the strong south winds, which make the trees bend and grow to the north. Carnarvon is nice, especially the months of September, October, November, and December. The wind is strong. Often near gale strength, with squalls and blue skies.
Posted on 15 Nov
NoveNove Maui Aloha Classic - Day 14 - A dramatic final day
After a week of light winds trades finally returned on last day of NoveNove Maui Aloha Classic to provide pulsating end After a week of light winds the trades finally returned on the last day of the 2016 NoveNove Maui Aloha Classic to provide a pulsating end to the event, which saw Kevin Pritchard (Starboard / Ezzy / MFC) defend his single elimination crown, while Sarah-Quita Offringa fought her way back through the double elimination with be crowned the women’s Aloha Classic Champion.
Posted on 14 Nov
NoveNove Maui Aloha Classic - Day 13
After another lay day NoveNove Aloha Classic could all boil down to tomorrow, which is final day of possible competition After another lay day in Maui the 2016 NoveNove Aloha Classic could all boil down to tomorrow, which is the final day of possible competition.
Posted on 13 Nov
METS - TorqueLite 2.0 to be released by Future Fibres at METS
Future Fibres' TorqueLite furling cables have helped change the way that yachts are sailed in the modern era. Since its inception in 2000, Future Fibres' TorqueLite furling cables have helped change the way that yachts are sailed in the modern era. Using the continuous winding process originally developed for America’s Cup and Open 60 campaigns, TorqueLite unique torque transfer enabled yachts to handle their large reaching sails much more easily and began to push towards larger and faster sails.
Posted on 11 Nov