Flagging a boat in a foreign country
jaybird wrote:
Can you avoid sales tax and intangible taxes by purchasing and flagging
a boat say in the Carribean vs the US?
It depends on the state. The excise tax in MA is owed regardless of
where the vessel is flagged. However, for a new 60+ foot boat the
bill is only $500, and for a more typical boat its under $200. In MA
you can avoid the sales tax by keeping the boat in Rhode Island for 6
months. However, there are some states that will collect the sales
tax (they call it a use tax) if you can't show that you paid it elsewhere.
On the other hand, foreign flagging must be an open invitation to the
CG to "Board Me!"
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