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Old 05-12-2017, 08:57 PM   #1
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Default Tax in MD --- help please!

Hi guys.

Question --- so I have been reading up on boat registration and tax payment in MD. Some places state that it's 5% off NADA value. Some places state it's off the purchase price.

.... what's the truth? Is it as it is in car purchases? Where as long as you have the notarized bill of sale for a particular price that's the amount you pay the tax on? Or, is it truly strictly off NADA?

Thanks in advance!!
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Old 05-12-2017, 09:41 PM   #2
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5% of purchase price.
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Old 05-13-2017, 04:44 AM   #3
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5% of purchase price. Just registered my boat last week. No notarized bill of sale is needed. They simply go off of the purchase price that is on the title.
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Old 05-13-2017, 05:00 AM   #4
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5% of purchase price or value which ever is higher is my firsthand experience. A few years ago I went back and forth with the MD DNR over taxes on a boat I purchased. I got a heck of a deal on the boat, had documentation and the seller there with me. The DNR said the boat was worth way more than I paid, which it was, but not what they stated, and wanted the excise tax on the higher "book" value. The DNR agent wound up splitting the difference from sale price to their "value", after additional proof that the boat needed work to bring it up to snuff to be worth their estimate. I think the DNR agent has some discretion in assessing the value for tax purposes on a private sale. I've also purchased a few boats over the years from a broker, in state and out of state, and had no issues with valuation for tax collection. The in state broker handled the whole transaction. On the boat I bought out of state, the broker didn't collect MD tax, and supplied me with documentation of the sale. The DNR accepted that info and collected the excise without issue. In a nutshell it is confusing, I think for a reason, so they can squeeze as much as possible out of you.

This was my experience with them, your mileage may vary.

This is what dealing with MD Government over taxes is like:
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Old 05-13-2017, 05:26 AM   #5
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You need to have separate bill of sale for trailer and boat or you pay tax on the lump sum and pay tax on trailer when you register it also
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Old 05-13-2017, 06:29 AM   #6
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You need to have separate bill of sale for trailer and boat or you pay tax on the lump sum and pay tax on trailer when you register it also
Roger Thatt!
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Old 05-13-2017, 03:00 PM   #7
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You need to have separate bill of sale for trailer and boat or you pay tax on the lump sum and pay tax on trailer when you register it also


I believe you can also separate the motors from the hull with a separate bill of sale to help lower the taxes.
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Old 05-13-2017, 08:39 PM   #8
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This is what dealing with MD Government over taxes is like:
https://m.youtube.com/watch?v=TSqGa_AjNBA
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Old 05-14-2017, 03:33 PM   #9
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The last five boats I've bought and registered in md have been bill of sale documentation. If you get a killer deal on the boat and they have something to say about it, how can tell if it's been sitting for 5 years the motor doesn't run and the floors soft or it sunk? I've never had them question
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Old 05-15-2017, 05:49 AM   #10
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Previous boat I had a notarized bill of sale. No questions. Current boat, bought new, had documentation from the factory, no questions.


The price of the same model boat can vary GREATLY, particularly with custom boats. I don't know how DNR could dispute what you present them, unless it is something totally ridiculous.
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Old 05-15-2017, 03:32 PM   #11
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(a) A licensed boat dealer shall collect the excise tax on all sales of vessels to be titled and numbered and on all sales of vessels to be federally documented to be used in the State as required under §§ 8-712 and 8-716 of this subtitle.


(4) "Used principally in this State" means that this State is the state of principal use as defined in § 8-701(p) of this subtitle, except that in calculating where the vessel is used or used most, a vessel is not considered to be in use for any period of time that it is held for maintenance, repair, or commissioning for 30 consecutive days or more.


The tax is only applicable if you are primarily using the vessel in Maryland waters. For those of us who primarily use our boats in Delaware waters and register in Delaware, Maryland tax is not applicable.
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Old 05-16-2017, 08:52 PM   #12
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I got a smoking deal on my boat ( which was not running nor had been for years ) AND had the seller with me at DNR office in Dundalk and they didn't care nor would budge off of the NADA Book so really I'd guess depends who you get, or for future reference if you " treat them good ". Just my opinion and experience.

BTW , I was as polite as could be and they still jammed it DEEP in me. Tried to explain about motors not running etc and was told only way they would adjust value is if acceptable surveyor brought them an official survey lol. After book value it was only four hundred and some bucks so no biggie but not the point. Should be actual purchase price ESPECIALLY with owner there.
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Old 05-17-2017, 08:21 AM   #13
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I experienced a very high tax quote while trying to register a boat in Southern MD. Told the guy at the counter I need to step out to check finances. Returned to a different counter and paid less than 1/2 of the original tax quote. Obviously, these folks interpret the policies very differently.
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Old 05-18-2017, 05:56 PM   #14
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Originally Posted by JUST GOT RIVERRED View Post
I got a smoking deal on my boat ( which was not running nor had been for years ) AND had the seller with me at DNR office in Dundalk and they didn't care nor would budge off of the NADA Book so really I'd guess depends who you get, or for future reference if you " treat them good ". Just my opinion and experience.

BTW , I was as polite as could be and they still jammed it DEEP in me. Tried to explain about motors not running etc and was told only way they would adjust value is if acceptable surveyor brought them an official survey lol. After book value it was only four hundred and some bucks so no biggie but not the point. Should be actual purchase price ESPECIALLY with owner there.
Same office I dealt with, and similar attitude. I asked the woman there, if I caught a gallon of paint on sale at Lowes for half price, do I pay tax on the sale price, or the full pre sale price. She wasn't amused.
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Old 05-19-2017, 06:47 AM   #15
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I've been dealing with the DNR by mail for years now. Last boat was a good deal (engines were blown). I had a notarized Bill of Sale that showed I paid maybe 10% of book. I printed out the registration application, calculated the sales tax on the price I paid, and mailed it all in to the Annapolis service center. Got my docs and stickers no questions asked. I figure, if they want my money, they'll make it work.

Did the same thing with a dinghy years back that I got for half price (open box sale at West Marine). The builder's certificate needed for a title on a new boat was nonexistent. When I called the service center I was told I couldn't get a title without it. However, when I sent them what I had, a cash register receipt, and a check for the correct title fee, I got my docs and stickers, and no questions.
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Old 05-19-2017, 12:02 PM   #16
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Do yourself a favor and mail all documentation to the DNR office in Garret County. You will have no problems. Get a Maine tag for the trailer and avoid any inspection fees and tax.
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Old 05-20-2017, 02:30 PM   #17
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Sounds like DE is your new/main port so go ahead and register boat in DE to avoid tax then tag trailer in maine. No inspections and cheaper to tag. Win win.
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Old 05-21-2017, 02:53 AM   #18
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Sounds like DE is your new/main port so go ahead and register boat in DE to avoid tax then tag trailer in maine. No inspections and cheaper to tag. Win win.

How can you register a boat in Delaware if you don't have a Delaware address?
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Old 05-21-2017, 06:10 AM   #19
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How can you register a boat in Delaware if you don't have a Delaware address?
Go to a place that sells boat registration in de tell them your main port is Indian river inlet, leads canal, etc in Delaware, take bill of sale and title then you'll get a new registration that is size of a credit card and boat reg sticker for the year. The credit card sized registration used to be blue now they are white.

Delaware DNRec website should have a list of boat registration places I see your from Cambridge so closest place for you is probably walkers marine in Seaford. They have good folks in there if you have any questions on it give them a shout.
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Old 05-21-2017, 02:34 PM   #20
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Originally Posted by arbogb06 View Post
Go to a place that sells boat registration in de tell them your main port is Indian river inlet, leads canal, etc in Delaware, take bill of sale and title then you'll get a new registration that is size of a credit card and boat reg sticker for the year. The credit card sized registration used to be blue now they are white.

Delaware DNRec website should have a list of boat registration places I see your from Cambridge so closest place for you is probably walkers marine in Seaford. They have good folks in there if you have any questions on it give them a shout.

Thanks for all the info. I never knew that was possible to do that if you didn't live in Delaware. I may have to look into this in the future.
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