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Jeff Jeff is offline
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First recorded activity by BoatBanter: Aug 2006
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Default Help buying a boat - WA res - CA sales tax? Foreign use,.. WTF

Capt. JG wrote:
"ray lunder" wrote in message
...
On Thu, 01 Oct 2009 14:11:01 -0400, wrote:

On Thu, 01 Oct 2009 10:55:25 -0700, ray lunder
wrote:

Ahoy, I'm looking at a presently CA registered sailboat. It's 33', not
sure of displacement but it's a steel sloop so heavy. It's not USCG
documented but I think I want it to be. My residence is in WA state. I
hope to leave the boat in Mexico on the 10 year permit and not use it
in the USA at all. Well, maybe in San Diego for repairs or something
but mostly Mex and beyond until I run out of money or my yardarm falls
off.
Also, it was foreign built. I assume the Import extravaganza has
already been addressed when it became a CA registered vessel. Is this
circumstance treated differently when it becomes CG documented? I'd
appreciate any advice from people who've navigated this sticky, wreck
strewn reef before. Hoping to solve this without an attorney/marine
doc specialist.
Thanks as always for your time, ray.
You absolutely do not need an attorney or a "doc specialist" to do
this.

http://www.uscg.mil/hq/cg5/nvdc/

If you can't find your answers on this website, then it also has the
phone number. Use it.

I did use it. Took about 25 minutes to get through the robotic
obfiscation menu. Because it was foreign built they gave me the name
of a US Customs contact. After 4 phone messages he finally answered
the phone on day two. If I understood him correctly no foreign built
vessel may be USCG documented. There were other terms I couldn't
easily follow as their meanings seemed to change in the context of the
conversation. "US flagged", "CG endorsements". There were more but I
was too glazed to follow along by this time.
WA state has a "usage" fee for CG documented vessels, so you pay
twice. The fee is the same as the sales tax, which is prohibitive. You
are given some grace period for being in WA waters but no real means
of establishing when it starts.
I still don't know if I would have to pay CA sales tax in order to
transfer the title into my name.
Smooth sailing everyone.

The Documentation Center is an example of a Government run
organization doing everything RIGHT. They are very helpful, and
pleasant to deal with.



You understood incorrectly or he told you the wrong thing. You can get a
waiver for $500 (probably hasn't changed).

http://www.marad.dot.gov/ships_shipp...sel_Waiver.htm


Unless things have changed recently, that advice is bogus. I documented
two foreign built vessels (a used Nonsuch and a new PDQ) and never
needed a waiver, nor do I remember a large fee. Waivers are needed for
commercial uses; if your intended use is recreational, the process
should be easy.
As for sales tax, although some states don't require registration of
documented vessels, most require that the sales tax (or equivalent) be
paid. As some states will require proof that it was paid in other
states if you stay for a few months, keep the receipt with the boat papers.