Help regarding Boat/Trailer Registration in VA/MD...

[DCBee]

Well, I am getting things lined up to pick the boat up next weekend (1999 Seapro 170DC with Suzuki DF70). One thing that confuses me is registration and titling.

1. I understand if boat is used primarily in MD waters (Bay and Potomac), it must be registered in MD (yes, VA said Potomac is MD waters).

2. Is trailer to be registered in the same state as boat? I am a VA resident, BTW.

3. What if I park boat in VA and trailer to MD waters for use?

4. Do I need separate bills of sale, one for boat and engine, and one for trailer? (DNR registers, titles, and taxes boat/engine, MVA registers, titles, licenses, and taxes trailer? Do we just estimate trailer value and subtract from agreed-upon price?

5. Speaking of bill of sale, should I deduct estimated value of accessories (PFDs, anchor, depthfinder, etc.) from bill of sale so that it reflects only the price of boat and engine (the only items subject to tax)?

I appreciate any advice you all might have to offer; this seems to be the most confusing part of the whole process...

Thanks Again,

DCBee

[CR295]

6 of one, 1/2 dozen of the other....From a legal perspective, you could easily justify registering it in either state. I dont think anyone is going to follow you around to see where you actually boat. Register it wherever it does you the most good, and that might be MD, if you are a VA resident. I think VA still has a personal property tax that you have to pay every year on toys??? On the other hand, it may be much easier logistically, registering it in the state you reside from a MVA/DNR point of view. The other thing to check on is what the sales tax is going to be on the boat. MD is 5%...if I recall correctly VA is only 3%. The seller should break the sale down for you seperating the hull and trailer. I really dont think you are going to save much by subtracting all the optional eqpt./accessories, or whether its even worth the hassle figuring out. Hope this helps. Good luck and enjoy your new boat!

[Hawkeye]

The way the law reads it doesn't care where you use the boat it where its parked. So in your case it Va. Prince William doped the pp tax on boat a few years ago. There are lots of place in that county to store the boat/trailer. Holly acers, EZ cruise and lots of others.



Hawkeye

[Capt. Dan]

I keep my boat on a trailer in Virginia and primarily use it in Delaware waters. Since the boat is registered in Delaware I paid no sales tax and also pay no personnal property tax.

[Hawkeye]

Here is the way the law is written in manassas city and prince william co. Notice Prince william dropped the PP tax in 1998 on boats.


Manassas City district
Tax Return Filing Date
You must file a personal property tax return by April 15th each year for
all taxable property owned on January 1st. Manassas is a non-prorating jurisdiction, so tax bills that are due October 5th represent only property owned January 1st. This means that tax will be due on property that you may no longer own and likewise no tax would be due for any new property acquired after January 1st


Prince william district
Items Subject to the Personal Property Tax
Prince William County's personal property tax is assessed annually as of January 1st for the following kinds of personal property: automobiles, trucks, mobile homes, motorcycles, trailers, and business personal property (e.g., furniture and fixtures, computer equipment, construction equipment, etc.). All other personal property, including personal effects, household items, money, securities, and livestock, is not subject to the personal property tax.

PLEASE NOTE: The tax applies to any vehicle normally garaged or parked in the County, even if it is registered in another state.

The County maintains registration information on boats, personal watercraft, outboard motors, and boat or watercraft trailers, though the tax on these items was eliminated beginning in 1998.



Hawkeye

[rwidman]

I think you should check with the authorities in both states to avoid trouble. I know MD has a program to check for boats docked in MD but registered elsewhere because a former co-worker left to take that job. I would be wary of having a boat registered in one state on a trailer registered in another. Neither state is going to let you make the choice based on your best interests, you should follow the laws to stay out of trouble.

Ron

[gentleman jim]

In Virginia boat is taxed in jurisdiction where boat is kept such as marina, dry storage ect. trailer is taxed in location registered on title. Boats and trailers are taxed individually. several jurisdictions in the tidewater area do not levy personal property taxes on pleasurecraft , a real magnet to folks who cringe at the thought of paying 3$ per hundred PP tax.
Jim

[CR295]

I know this cold weather is getting to us all... the cabin fever must be at an epidemic level here, with all this disection of the fine print going on. You all can read into all this as deep or as little as you want, but as a practical matter, and within reason, it doesnt mean squat for your boat, or for you, where you register it.

Consider my situation, I live in MD and boat in MD, NC, and VA and occasionally DE. My boat moves with the fish and the season so I usually leave it at any given spot for few weeks to a few months. In the winter it lays up out of state because its convenient to me there. Now where would you or any state, consider my boat normally parked???

Though I own out of state property, and keep the boat there for a few weeks or even a few months out of the year, does that mean I owe pp tax on my boat there? I dont think so, and I dont think anyone is going to question this.

RWIDMAN... what your ex-coworker does, is go out looking for big big boats, not trailer boats...that are BERTHED year round in the water (or a majority of the year) in one state but registered elsewhere, where the tax is cheaper or non-existant. It has become a big issue when you are talking thousands and thousands of dollars of tax on a high dollar vessel. There was a big article on this is Boating Magazine a few years back.

I keep my boat at a marina in MD for part of the year, on a rack. There are boats that have been stored there for many years which are registered all over the country. To my knowledge no one has ever had an issue with this or been busted by the \"tax police\" for non-compliance.

Remember there is a difference between personal property tax and the one time sales tax. But either way, DNR wants to see current registration from what ever state youre from, they dont give a rats ass where you paid the tax or if you pay personal property tax. Bottom line - I guess, is do what you feel comfortable doing, because the law can be interpreted different ways and doesnt fit every situation. In my mind it made sense to register the boat where I reside and be done with it.

I certainly feel comfortable doing what I did, have never been questioned about it, and am not about to pay sales tax, personal property tax, or any other tax (beside the daggone gas tax) in 4 different states, because the boat was in that state on January 1st.

Also, consider this: and this is off topic but I think it might help someone out... the ZIP CODE you give the insurance co. could make a huge difference on the premium you pay.

I currently am with a company that allows unlimited-coastal travel for the east coast, and gulf of mexico. They know the boat is moved around a lot and dont care about this, dont require me to notify them each time I move it, and dont have time restrictions, like staying in one spot for the majority of the year. My previous policy stipulated that, if I went outside the confines of the Chesapeake Bay and tributaries, I would have to get approval, and pay a minimum two week rider each time ($30). They would only grant a max of two months out of my home area. To get their unlimited policy, was over $1100.00 (Boat U.S.)... I woulda sold the boat before paying this. Other insurance Company quotes were equally as pricey or had similar restrictions that I couldnt live with. I saved over $200.00 over my old policy, and potentially almost $800.00 dollars over the Boat U.S. \"unlimited policy\" by giving my current carrier an out of state zip code, where the crime and boating claims are very low for my type and size vessel. I now store the boat in this zip code for the winter and maybe a few months out of the year. Something about my DC suburban zip code that really made the the underwriters squirm!!! Immagine that?

Sorry for the long post and the rant. Hope I didnt offend anyone! I think winter is getting to me too. It wont be too much longer...

[This message was edited by CR295 on 01-28-03 at 09:00 PM.]