[C320-list] Update on boat purchase - Taxes

[Rick Evans]

Sounds like cross state tax laws are trying to get over on all of us to me. The tax should be paid in the state you register the boat that's it. Its simple and less red tape. 

What are the odds you actually get your "refund" from MD?  
Even if you do how long will it take?  One thing people forget is that you will be lending the state of MD that money and during that time you will not be able to earn interest on the money but they will. Essentially your giving the state a loan for free. Cause I'm sure they will give you your money back with interest lol. 

I don't like it one bit. 

Good luck to you
Rick 724
Sent via BlackBerry from T-Mobile

-----Original Message-----
From: "Brad Kuether" <bkuether at comcast.net>

Date: Wed, 17 Jun 2009 07:38:11 
To: <C320-List at Catalina320.com>
Subject: [C320-list] Update on boat purchase - Taxes


Hey Everyone,

Here is an update.

First from the Maryland side, quote from the DNR:

"In order to receive the offset against the 5% Maryland excise tax, the boat 
must be formally titled in the state of purchase, in the name and address of 
the new owner, taxes paid, and tax forms recieved and presented".

So if the outside state of purchase will NOT let you walk away with the boat 
without paying taxes, you MUST take ownership, and have it titled in your 
name, pay taxes, and be able to present those tax forms to the Maryland DNR 
when doing the title change in Maryland.  They will credit you up to the 
amount paid, and if less than 5% you owe Maryland the balance.  (this is 
fair)

>From the Illinois side:

"The boat can be purchased from an Illinois owner or broker, without any tax 
implications, as long it is removed from the state within 30 days after the 
paperwork is signed.  ALSO, the dealer should be provided with the Maryland 
(or other outside state) tax forms, as proof taxes were paid.

So in the end, I am paying 5% Maryland instead of 6.5% Illinois tax.   A 
happy ending indeed.

Survey is set for the last week in June, boat (hull 1006) will be shipped on 
July 12th to Maryland Marina, two slips over from Warren Updike's "Wal de 
Mar".

The kids are out of their minds, "when can we sleep on it", "I want to sit 
in the seats!", "Can we take this boat really far away, like China?"

-Brad, Mary, Monica, and Jarod
soon "Independence 1006"
Middle River, MD

----- Original Message ----- 
From: "Rod Boer" <rod.boer1 at verizon.net>
To: <C320-List at Catalina320.com>
Sent: Monday, June 15, 2009 4:53 PM
Subject: Re: [C320-list] Update on boat purchase


> Hi Brad,
>
> I purchased Odyssey in NJ and sailed it directly to MD which is where I 
> paid
> the tax on it.  Sometime later PA, which is where I live, came after me
> demanding sales tax and I explained that it hadn't been used in PA and
> wouldn't be physically in PA and that was the end of the story.
>
> Rod Boer
> Odyssey, #688
>
> -----Original Message-----
> From: c320-list-bounces at lists.catalina320.com
> [mailto:c320-list-bounces at lists.catalina320.com] On Behalf Of Brad Kuether
> Sent: Saturday, June 13, 2009 7:08 PM
> To: C320-List at Catalina320.org
> Subject: [C320-list] Update on boat purchase
>
> I am less than a month from getting "Independence" a 2004 Catalina, and
> bringing her home to Middle River parked one boat over from Wal de Mar.
>
> I have a surveyor lined up, the broker has been GREAT (Sail Place in
> Chicago), and almost everything is set, even the financing!
>
> Right now the only open switch is the taxes.  I assumed that I would just
> pay the state where the boat was located "to" but this appears to not be 
> the
> case.
>
>>From the Maryland DNR page, it appears that I pay taxes in Illinois, and
> get a "credit".  I would think Maryland would want those taxes, Illinois 
> got
> them already on the initial purchase!
>
> Here are the two pages:
>
> http://www.dnr.state.md.us/boating/registration/
>
> http://www.dnr.state.md.us/download/DNRB-240.pdf
>
>
> Anyone move a boat to Maryland from another state?  Curious to understand
> the tax implications.  I am NOT paying both states!
>
> Thanks in advance for any insight.
>
> -Brad, Mary, Monica, and Jarod
> soon to be "Independence"
> Hull # 1006
> Middle River, MD
>
>