That would not work in Georgia. The HIN is required for USCG
documentation and there are only two ways to get a HIN. Either register
the boat as homebuilt and let the state assign a it or get a
manufacturer's prefix from the USCG. If I register as a manufacturer
with the USCG I will immediately be classified that way and the DOR will
say I am converting a product to personal use and make me pay sales tax
on the market value of the boat rather than material cost.

The agent that writes my homeowner's policy had to go on oxygen when I
told him about the boat. :-) Rutu has a full blown buildres risk yacht
policy. All I really needed was fire and windstorm coverage but if
someone manages to sneek a crane and a lowboy into the backyard and
steel the boat I am covered. Also, even though I am 150 miles from any
water deep enough to float it, if it sinks, I'm covered.

Insurance companies are just not equipped to deal with crazy
boatbuilders like me. :-)

Jim Woodward wrote:
I'm not at all sure you need to do a state registration before you
document the vessel with the Feds -- you may have done more current
research than I, but I think all you need to do is fill out a CG1261
as the builder. see
http://www.uscg.mil/hq/g-m/vdoc/faq.htm#10

Certainly back in the Dark Ages when I was building boats for a very
modest living, that was all we did -- no one ever went to the state
first. I know the rules have changed some, but I can't imagine say,
Washburn Doughty, getting a Maine registration on one of their tugs
before they delivered it....

Of course, in Massachusetts, at least, this won't help the sales tax
issue -- the mass Department of Revenue follows new documentations and
sends out letters.

I had a good moment on that subject with regard to Swee****er -- was
able to reply (from Papeete) that we had bought the boat in Rhode
Island and that she was now in Tahiti and that the Massachusetts use
tax probably didn't apply.

In either case, sooner would be better, as you can certainly make
improvements on your boat without paying sales tax on the labor. Make
sure your insurance agent knows, because that may be the moment when
she goes from being personal property on your homeowners insurance to
being a boat requiring her own policy.

Jim Woodward
www.mvFintry.com

Glenn Ashmore wrote in message news:bv2ib.74207$sp2.30015@lakeread04...

Last month I bought one of the company's older fleet cars for #2
daughter. Not exactly a "sweetheart deal" but definitely most favored
nation. ;-) Sent the title in for transfer and got a new tag. This
week I get a letter from the GA revenuers wanting to know the sales
price and asking for their pound of sales tax flesh. Casual sales of
cars have never been taxed before so I did some checking. It seems that
because the politicians are hungry for money in this budget crunch the D
of R has finally linked there computer system to Public Safety and are
tracking every title.

What has this to do with boatbuilding? DNR will be linked by next year.
Most of my material was purchased out of state or on eBay so I am
going to get hit bad. I think I will try to register before they get
linked.

This is just Georgia but most states are hunting for revenue now so
check out what your state is doing and plan accordingly if you have a
big project and be sure to have your receipts carefully documented
before you go to register your boat and get a HIN.

--
Glenn Ashmore

I'm building a 45' cutter in strip/composite. Watch my progress (or lack
there of) at: http://www.rutuonline.com
Shameless Commercial Division: http://www.spade-anchor-us.com