Buying a boat in the US.....

[Thaumaturge]

I would be grateful if anyone in the forum would be willing to share his/her experiences of buying a sailing vessel in the US.

Information concerning issues such as sales/excise tax exemption or liability, reflagging, cruising permits etc would be very gratefully received.

Forgive me if it has been discussed in the forum before, I have yet to find the information.

Thanks in anticipation of any help received.

Vince

 

[Capn Pugwash]

I bought our yacht from the US and sailed her back via the Azores last June. IM me for some details on VAT, import, RCD and SSR etc.

Alternatively look at Me web site!

 

[Thaumaturge]

Thanks for that response.

What I actually wanted to know was more about the practicality of deregistering from US registry and reflagging in the UK (SSR). Would it, for example, be more advantageous to register in the BVI?

And, from that event how I would fare with Florida sales tax/usage tax exemption?

Also, knowing that, under normal circumstances I would have 90 days to remove the vessel from Florida, can I, in the meantime apply for a Cruising License (as a foreign registered vessel) and continue to cruise the eastern seaboard?

The RCD and VAT are well documented issues and I believe the situation is quite clear as far as they are concerned.

 

[DaveNTL]

In the US, being federal, each State has it's own registration and the details and costs vary widely, for example some pay a few dollars a year, some have a form of property tax. Anyway, none of that affects you because the seller will de-register the boat.

Then they have another thing called documentation, the boat is a 'documented vessel'. This is done with the Coast Guard and is quite a bit more involved than the registration. It is done for identification purposes and has certain benefits to Americans, but again, this doesn't affect you, but if the boat is documented it will have to be de-documented by the seller. Not all US boats are documented.

As for sales tax, if you are exporting it you do not have to pay it. Again the rate of tax varies from State to State. Some have no tax on boats. From memory Rhode Island and Delaware have no boat sales tax.

Florida tax collectors are apparently the most keen, but as you have said there is the 90 day rule after which you would have to take it out of the State. You can come back again though.

Regarding the Cruising Permit, if you intend using the boat in the USA for some time this is not the best way to go - get a 'User Fee Decal' - this is a nice perk for people buying from the USA who then register it elsewhere because you are not restricted to the limitations of the Cruising Permit which only lasts a year, then you have to get out of the USA.

This is the link for the User Fee Decal

http://www.cbp.gov/xp/cgov/travel/pleasure_boats/user_fee/user_fee_decal.xml

I bought my boat early 2005 and I'm on my third decal. The boat has never left the USA. As soon as the sale had gone through I went online and did Pt3 SSR registration and hoisted the Red Ensign!

As and when, or if, I ever want to bring it to Europe I would have to think about paying VAT. Plenty of threads on that.

As for Pt3 - I assume you know how to get that?

Then there's RCD of course. Again, lots of threads on that. I bought a fairly new Nauticat so no real problems there but if you was to buy an american built boat there could be lots of issues.

Hope this helps.

 

[Thaumaturge]

What an excellent and informative reply, many thanks.

I had seen mention of the User Fee Decals somewhere along the line in my research, but your link provides much more meaningful data.

Once again many thanks!

 

[Lizzie_B]

Hi. We have bought and keep our boat in the US. If buying in Florida you need to talk to Jimmy Kalfas at the Florida Department of Revenue. You should be able to get his email address from them.

In Florida if 'exporting' the boat out of state you have to sign an affidavit (a reputable broker should be able to supply you with the form - or I can email a copy to you).

There are several routes, but basically you either have to be out of state within 90 days of the completion date of the sale and not return within 6 months. You have to provide evidence of the vessels removal from the State of Florida and its registration in another state eg Delaware or UK SSR within 30 days of the expiry of the 90 day period.

Alternatively. If there are some things you want doing before setting off - you can put the boat in a Recognised Repair Facility (boatyard) and do all you want to do. You then have 20days from leaving the RRF to get the boat out of Florida and the same rules apply about proof and return as the 90 day system.

The two can be combined. EG set off on 90 day removal, have to put in somewhere for repairs - notify Florida Dept of revenue and declare boat in RRF - you then have 20 days to remove on completion of repairs.

 

[Thaumaturge]

Thanks Lizzie.

It is heartening to know that there are lots of people willing to share their experiences in this manner.

The tip about the RRF will prove invaluable as we try to juggle our timetable. Is there a limit, real or notional, to the time you can spend in the facility? It sounds like (in effect) we can haul the boat and set it in cradles whilst we complete our 'mothballing' of the house and our exit from Europe.

Vince

 

[Lizzie_B]

No, there is no limit on the time you can spend in the RRF.
I am off out to the states today to go play on my own boat. Will be back on 26th. If you pm me will send you details of what we did in full.
The people at Florida Department of Revenue were fine and very helpful as long as you keep them up to speed via email with what's happening, and that when you eventually move the boat you're prompt with the paperwork.
Their main concern is that you're not saying you're 'exporting' the boat and then continuing to use it in Florida. When the boat is in the RRF it is deemed not to be in your useage.

They get very 'twitchy' if they think someone is not being up front.
Usually, as with most surveys (and particularly sue concious american surveyors) there will be a list of things to do mentioned on the survey, so that can be your starting point.
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