Boaters - The Tax Man Cometh

I was reading an article this morning in a new magazine. The article briefly reviewed a case where a New England boater had been cruising the east coast aboard his trawler from Florida to the Chesapeake, much of it via the Intracoastal Waterway.

It seems that upon returning home, he received a tax bill in the mail from two NC counties wanting him to pay personal property taxes on the value of his trawler. They claimed he had over stayed his welcome and now must pay up. I have heard that at least NC and SC has tax collectors walking the docks. I heard of a mega yacht at Hilton Head that was presented a hefty tax bill last year. I have not heard or seen any evidence of that here in FL.

In this day of squeezed budgets at all levels of government, it does not surprise me to see this happen.

So I got to thinking it would be good to know how long you have to stay in each state if I was going to make that passage aboard my trawler to avoid a tax liability.

Florida

Florida requires that out of state vessels be registered after 30 days in state waters. But the State provides reciprocity for out of state vessels allowing use for up to 90 days. There is however, a little used provision, statute 328.58, that provides a temporary registration beyond the 90 days, the Sojourner Registration, which is a temporary registration There is no personal property tax collected on Florida vessels.

Georgia

The Georgia Department of Revenue requires that both residents and non-residents file for personal property taxes on boats that have been in state waters for 184 consecutive days within a calender year. Georgia will honor taxes paid in another state.

South Carolina

The SC Department of Revenue requires that non-residents file for personal property taxes on boats that have been in state waters for 180 consecutive days within a calender year. SC will honor taxes paid in another state.

North Carolina

The NC Department of Revenue grants a 90 day grace period. Residing in the states waters longer may result in a tax liability. NC will honor taxes paid in another state.

Virginia

The VA Department of Revenue grants a 90 day grace period. Residing in the states waters longer may result in a tax liability. VA does not honor taxes paid in another state.

Alabama

The VA Department of Revenue grants a 90 day grace period. Residing in the states waters longer may result in a tax liability. AL does honor taxes paid in another state.

Mississippi

The MS Department of Revenue grants a 60 day grace period. Residing in the states waters longer may result in a tax liability. MS does honor taxes paid in another state.

The boater from New England did manage to avoid paying taxes. How? He kept detailed cruising logs of his travels detailing lay overs, marinas, taking on fuel etc. He recreated his trip through NC and proved that he had not exceeded the 90 day grace period.