Licensing in Montana and Delaware

MarkMuck

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Jan 1, 2000
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362
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I have heard licensing in these states is much less expensive than here in my state. Has anyone ever done this? Has it worked OK? I’m thinking about buying another boat and want to know my options.
 
I assume you are talking about Coast Guard Documentation as opposed to state registration.
As far as CG documentation, you can have any location in the US as your hailing port, doesn’t matter where you boat. Keep the boat on the Chesapeake Bay and have Boise, ID as your hailing port. No problem.
Now, most states do require all boats to be registered in the state they are primarily cruised in, even documented boats. I’m in VA, one of the few states that do not require documented boats to be registered.
Now if you move around frequently from state to state, you can probably get by without being registered assuming you are CG documented. There are some states that are very diligent tracking down boats to be certain they are registered.
Some states, like VA charge personal property taxes on boats, so keep it in one location, you will get a bill.
 
DE has no sales tax. Cars are charged a title fee (similar to sales tax). Boats are registered through the EPA, not DMV.
 
Ok, so where is the boat or rather, where will you mostly use the boat?
 
You mean registering( or in some states titling), as opposed to licensing. I have to assume it’s the sales tax you are tying to avoid, not the actual registration fee.

anyone can register their boat in Delaware, and they won’t owe DE any sales tax. but if you are keeping your boat all year in one other state, it won’t do you much good.

havent seen in lately, but back in early 2000’s the tax agents in Jersey and MD used to walk the docks of the bigger marinas, take note of all the boats without the state sticker. Head to the office, pull the slip contracts. If a slip holder had an annual contract in NJ ( for example), and no NJ sticker on the boat, you owed not only the tax, but the penalty too. If you could prove your boat was not in NJ for a majority of the year, depsite the fact you had the annual slip - you certainly could win. And if it was a seasonal slip, and you had paperwork for winter storage in another state, or Lived in another state, you were ok. That’s what I always did back then. Registered my boat in DE, used it mostly in Maryland and NJ, and kept it over the winter in PA. hardly ever saw DE water or land - but NJ and PA and MD couldn’t tax me - as I wasn’t in waters of any of those state for more than a few months.

But really there is no free lunch - if you are keeping your boat in some state that charges taxes - hard to get much benefit of a DE registration, without being very creative, or moving amongst states every year. Creative would be to buy the boat, register it in DE, and then before you berth it in your home state - sell it to your wife for one dollar. Now you only owe tax on the purchase price, right?
 
That s why florida capped sales tax on boats at $18k tax 15 years ago or so. People stopped playing games and paid the tax. Revenue increased drastically

We all remember John Kerry’s 80 foot sloop he had built down under (I guess New England boat builders aren’t good enough for a US senator...). Homeported it Newport RI but kept it all summer in his home state on Massachusetts (nantucket).
 
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