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State taxes

Old 02-01-2019, 06:57 PM
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Default State taxes

I live on in PA and can walk to Delaware from my house. In this corner of the state I am also very close to NJ and MD. I recently bought my first boat (2017 cobia 220cc) that is kept on a trailer and said that I am keeping it in DE because I really dont know where I would use it most. I dont want to pay taxes I dont have to. I do know it will not be in PA. Right now my intention is to split use between NJ shore, de bay, and upper chesapeake. If I guess the split it would be 20% nj, 40% de, 40% md. At this point I really dont have a state of primary use.

Right now I have the boat on the trailer shrink wrapped at a marina in MD. I expect I will keep it shrink wrapped until mid-March when the bass start showing up and keep it there until May. That is when the drum and bass start in DE bay. June/July I dont have plan but likely split nj/md, August NJ when I have a rental house in Sea Isle, and then who knows.

I like the idea of keeping the boat on a trailer in MD at marina for the year and moving it when needed (only 15 min from DE). I want to be in line with law but also dont want to pay taxes I dont have to. I am still learning the waters in the area so I dont really know where my primary use would be. Will MD come after me for a DE boat on a trailer in a marina in MD?

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Old 02-01-2019, 07:05 PM
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I’m taking a guess by saying, since it lives on a trailer it should be taxed at the same place as the reg. In your case PA. If the boat was marina stored hi/ dry or docked outside your state that might change things.
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Old 02-01-2019, 07:35 PM
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Trailer will need to be reg in PA and pay taxes there. I tried to do that but it was already shrink wrapped in MD and they need to see the trailer to be able to register it in PA. Boat has been registered in DE but I dont have letters/numbers on it as it is shrink wrapped.
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Old 02-01-2019, 07:54 PM
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Old 02-01-2019, 08:02 PM
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Originally Posted by webe View Post
I am not sure the ROI on the fees is there. MD taxes would be ~$2500.
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Old 02-02-2019, 04:11 AM
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Where ever you decide to register the boat is where you will pay the taxes. . .

Key considerations would be

1) Where you keep the boat

2) Your state of residence

I don't think the sea bass are going to care where you registered the boat
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Old 02-02-2019, 04:29 AM
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If it's registered in DE then store it there. Why not register the trailer in DE also?
Its all about the total time in any 1 place. Keep receipts to prove you moved the boat out of the other states.
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Old 02-02-2019, 05:48 AM
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I'm in VA and have had boats registered in DL......taxes were the reason. I don't know what the rates are in the other states you list but DL is very favorable.

The correct answer is your supposed to pay taxes where the boat is stored MOST of the year.
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Old 02-02-2019, 06:08 AM
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Tag and title it in Del my dad did that and he lived in Pa all his life. I also must add he did it 1 he had a trailer in Del and he didn't have to pay a $5 fee to launch it in Del. I must also ask how does Pa even know you own it if you title/tag it in Del.?
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Old 02-02-2019, 07:31 AM
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Originally Posted by fbsaltfly View Post
I live on in PA and can walk to Delaware from my house. In this corner of the state I am also very close to NJ and MD. I recently bought my first boat (2017 cobia 220cc) that is kept on a trailer and said that I am keeping it in DE because I really dont know where I would use it most. I dont want to pay taxes I dont have to. I do know it will not be in PA. Right now my intention is to split use between NJ shore, de bay, and upper chesapeake. If I guess the split it would be 20% nj, 40% de, 40% md. At this point I really dont have a state of primary use.

Right now I have the boat on the trailer shrink wrapped at a marina in MD. I expect I will keep it shrink wrapped until mid-March when the bass start showing up and keep it there until May. That is when the drum and bass start in DE bay. June/July I dont have plan but likely split nj/md, August NJ when I have a rental house in Sea Isle, and then who knows.

I like the idea of keeping the boat on a trailer in MD at marina for the year and moving it when needed (only 15 min from DE). I want to be in line with law but also dont want to pay taxes I dont have to. I am still learning the waters in the area so I dont really know where my primary use would be. Will MD come after me for a DE boat on a trailer in a marina in MD?



What taxes are you referring to? Who did you pay sales tax to when you bought the boat and trailer? PA?

Other then that there isn't any use taxes other then NJ

Last edited by Thalasso; 02-02-2019 at 07:44 AM.
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Old 02-02-2019, 07:36 AM
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Originally Posted by t500hps View Post
The correct answer is your supposed to pay taxes where the boat is stored MOST of the year.
No that is not correct

Each state says when something becomes taxable under sales/use/excise taxes

Its possible to have to register and pay taxes in multiple states. Thankfully most states recognize taxes paid in another jurisdiction so worst case may be paying the difference between.

Many states are 30-90 days of use/storage. Some are less and some are more. Some also don't tax at all. Some say # days doesnt matter if boat enters within first 6 months of purchase its taxable even if you are taking it elsewhere. Others tax hits if a sale/purchase takes place in the state even if used and being moved out of state immediately. Some states offer exemptions for winter storage. Some states offer exemptions for out-of-state non-resident purchases of a used boat so long as the boat is immediately picked up and moved out of state. Some offer cruising permits to extend a stay but most don't.

So in summary, it depends on each state and one should read the laws/regs for each state they plan to conduct a purchase in, store in (even on trailer), use, etc. This is why cruisers keep log books/evidence to show where they are and leave certain states/jurisdictions as to not exceed a threshold and have to pay taxes. There are plenty of stories of a cruiser visiting a state for a month or two and getting not only a state use tax bill but also excise/property tax levied.
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Old 02-02-2019, 08:04 AM
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Pick the cheapest state and make the thieves catch you.

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Old 02-02-2019, 09:34 AM
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Maryland does go after boats that are registered out of State and are obviously spending the majority of the year in Maryland. Your case may be harder to prove. If you're going to be keeping the boat on the trailer in Maryland, it would probably be safer just to register the boat in Maryland. The Maryland tax is an excise tax and is 5% on boats. If it's substantially cheaper to register it elsewhere, you'll have to make that decision.
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Old 02-02-2019, 01:42 PM
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I live in Virginia and keep my boat in Delaware. It is registered in Delaware. I registered it in VA when I bought it. After the first $3,100 personal property tax bill I registered it in Delaware. My annual taxes went to ZERO. In your situation, if you are going to store it on a trailer, I would store it in Delaware and register it in Delaware. You will pay annual taxes in Maryland. I know that the Maryland marine cops really watch for out of state registered boats sitting in Maryland marinas. They will give you a notice to move the boat or register in Maryland so they can hammer you for the taxes.
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Old 02-02-2019, 01:57 PM
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Originally Posted by ReelRelaxin View Post
I live in Virginia and keep my boat in Delaware. It is registered in Delaware. I registered it in VA when I bought it. After the first $3,100 personal property tax bill I registered it in Delaware. My annual taxes went to ZERO. In your situation, if you are going to store it on a trailer, I would store it in Delaware and register it in Delaware. You will pay annual taxes in Maryland. I know that the Maryland marine cops really watch for out of state registered boats sitting in Maryland marinas. They will give you a notice to move the boat or register in Maryland so they can hammer you for the taxes.

That's what i don't understand about his question. There are no taxes in PA other then the sales tax
PA doesn't have a personal property tax like some states do
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Old 02-02-2019, 02:08 PM
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Not true - there are NO annual taxes on boats in Maryland. The excise tax is a one time 5% when you first register. There is a $24 registration fee every two years.
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Old 02-02-2019, 02:57 PM
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You do not pay any sales tax on trailer or boat until it is registered in PA. I live not too far from you in PA and my boats are and always have been registered in DE. NO sales tax. Boat is used from DE only and resides in its slip 9 month a year.
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Old 02-03-2019, 02:52 AM
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I live in PA. Trailer is registered in PA, boat is registered in DE to avoid paying the sales tax when I bought it. I was told by the marina if I use it mostly in DE then it was a legit way to do it. Boat and trailer sit in my driveway in PA most of the time.
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Old 02-03-2019, 03:22 AM
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Originally Posted by fbsaltfly View Post
I live on in PA and can walk to Delaware from my house. In this corner of the state I am also very close to NJ and MD. I recently bought my first boat (2017 cobia 220cc) that is kept on a trailer and said that I am keeping it in DE because I really dont know where I would use it most. I dont want to pay taxes I dont have to. I do know it will not be in PA. Right now my intention is to split use between NJ shore, de bay, and upper chesapeake. If I guess the split it would be 20% nj, 40% de, 40% md. At this point I really dont have a state of primary use.

Right now I have the boat on the trailer shrink wrapped at a marina in MD. I expect I will keep it shrink wrapped until mid-March when the bass start showing up and keep it there until May. That is when the drum and bass start in DE bay. June/July I dont have plan but likely split nj/md, August NJ when I have a rental house in Sea Isle, and then who knows.

I like the idea of keeping the boat on a trailer in MD at marina for the year and moving it when needed (only 15 min from DE). I want to be in line with law but also dont want to pay taxes I dont have to. I am still learning the waters in the area so I dont really know where my primary use would be. Will MD come after me for a DE boat on a trailer in a marina in MD?

jersy has a good tax on boats
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Old 02-03-2019, 04:15 AM
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Register the trailer in Maine, 5 years for $99



​​​​​​https://mainetrailerregistrations.com/







.
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