| [This replaces .1, which was slightly mangled when the network blipped a
couple times during transmission to MSCSSE.]
>>> In buying this documented boat in Maine and wintering it in New
>>> Hampshire, what will be the tax requirements if I bring it into
>>> Mass. next year. I will have owned it for eight months prior to
>>> bringing it Mass.
If you (ever) bring it to MA and can't prove you've paid sales tax on it
*some*where, MA tax folks will make you pay the 5% here. I don't know if
that would be on the price you paid, or on its value at the time you bring
it here, by whatever method they might use to determine that.
Having shuffled a boat back and forth between MA and ME for several years,
the catch was where it was located as of July 1 of a given year. If it
was in MA on July 1, then we were liable for MA excise tax. Although my
father was legal co-owner, and possessor of the address-of-record in NH,
we always got a bill, and I always spent several days at Gloucester City
Hall getting it abated. If you have a MA residence, I doubt you could get
out of it -- if the city/town of boat's location didn't tax you (most
likely they would), they'd then report the status back to the state, and
probably your home city/town would then assess you! This has gotten a
whole bunch more efficient as the state learns to use its computers for
more than just writing up bills and mailing labels.
BTW, one year when I was out of state with the boat on July 1 (in fact for
almost all of that month), the fact that I had a local mooring caused them
to assess me anyway! Again, it was a hassle to convince them that we kept
the boat mostly in Maine; they would not abate the excise tax until I
could show them that a Maine excise tax had been paid!
Bottom line: If your boat has signifcant value, and you keep it in more
than one tax-paying state each year, consider setting things up so that you
at least minimize your tax. It seems MA will try to get you either way:
o If you sail in MA, but winter haul out of state, OR
o If you store in MA, but sail the season out of state.
Aaarrghh!
J.
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| Actually there are two taxes;
1. The Sales/Use tax amounting to 5% of the sales value of the boat
as determined by the Dept of Revenue or the sales receipt (which
ever is higher). This is a one time tax.
2. The excise tax which is $10 per thousand of the assessed value,
and is due yearly. Part of the excise goes to the state and part
to the municiplaity involved.
The Sales/Use tax can be *WAIVED* if all the following conditions are
met;
a. The Boat was bought outside of Massachesetts (i.e. no sales tax)
b. The Boat was primarily used outside of Massachusetts for at
least 6 months (i.e. primary use was not intended for MA).
c. The person who bought the boat was not a resident of MA at
the time of sale, and for at least 6 months.
If the conditions are not met, the Dept of Revenue will give you credit
for any Sales/Use taxes paid to other states up to a maximum of 5% of
the value of the boat.
The second tax which is the excise tax is assessed yearly on the basis
of where the boat if located as of the first of July. Owning a mooring
is prima facie evidence that the boat was 'there' on July 1st. If this
assumption was wrong, you can file an abatement with the local town's
tax clerk, but be prepared to justify to the Harbormaster why you have
the mooring if it is not being used.
Personally, I got the tax waived since I kept the boat in Portsmouth
for the first year, before I (being a NH resident) brought the boat
down to Newburyport. I have paid the excise tax each year that I have
been there. I think the excise tax should be paid since it helps pay
for the actions of Harbormaster and the extra costs to the town for
maintaining the waterfront, for which I receive benefit (but of course
I have a 15 yr old 25' sloop which runs only $53/year for taxes).
/jim
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