[Psml] State Registration vs Federal Documentation

John & Judy Gill twojscom at quadnet.net
Sun Nov 12 20:05:17 EST 2006


I need some help regarding State Registration and Federal Documented  
of vessels, particularly with regard to California and Florida.

A boater on another subscriber list (Great Loop) is a resident of  
California.  Bought his boat in Florida, took the vessel out of the  
state within 90 days and then returned to Florida where he btained a  
Florida non resident permit which did not require proof of paying  
sales tax anywhere.
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This boater claims the following:

"California registration is derived from the title, or proof of
ownership (also called a pink slip, even though it is multicolored
now).  Some other states keep registration and ownership separate.
California CANNOT register a federally documented vessel because the
USCG documentation is evidence of ownership.  One can document a
vessel or register a vessel in California but not both.  California
counties can, and do, levy personal property taxes (but not sales tax)
on documented vessels within their waters.  San Diego county is quite
aggressive in collecting personal property tax on boats, planes and
other property not taxed by the state if it is within their
jurisdiction, even if title is held out of state.

There is no Federal requirement that a boat be registered in the state
of principle use."
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I have been trying to convince the boater that Federal Law requires  
vessels to be Registered in their state of principal use (not state  
titled) , and of course pay any sales taxes that apply in that state  
(credit given to sales taxes paid in another state). This boater  
claims that there is no Federal Law requiring registration in any  
state of principal use???  He claims that because he is a California  
resident, he can Legally Avoid Paying Sales Tax as long as he does  
not return his vessel to California and can boat in all other states  
using his non resident permit from Florida.

This boater is planning on going on the America's Great Loop Cruise  
(a circumnavigation of the USA and Canada).  I have informed him that  
he must keep on the move and be a Transient Boater everywhere or  
another state may claim that their state has become his State of  
Principal Use (more than 30 to 90 days) since he has been there  
longer than any other state, and then make him pay sales taxes to  
that state (this is the position taken by the state of Maryland where  
I keep my boat).

Please be as specific as possible in your reply including CFR  
Numbers, State Law numbers, etc.  Thanks!

D/Lt John Gill, AP
USPS Certified VSC Examiner
Pennsway (PA) Squadron in D/5



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