Is NC now taxing nonresident owners of documented vessels moored in NC?

[Tim Powell]

I am not complaining about the tax at all. Those who drive on it (roads) should pay for it. If you really look at a town or county budget they never tell the truth. Where every dollar comes from. The real problem i have is where it goes, or used for. The line at the local food shelter is around the block. The town does nothing we pull money out of our pockets to pay rent when the town has a building they are not using. Our town is building and purching items which are not at all helping them. Like the 2,8 million dollar old spring site. That was the founding of the town. But who the heck is going to purchase 11 aks of swanp but a bunch of guys spending someone else money.The sellers has ken on the board. SMALL TOWN!
I AM DONE IT MAKES ME ILL TO JUST DISCUSS THE BULL IN THIS POST. iT IS NOT A FREE COUNTRY THAT I FULLY UNDERSTAND. THATS WHY WE HAVE A NATIONAL DEBT OF TRILLIONS I GUESS I GOTTA WORRY ABOUT IT ABOUT 25 MORE YEARS THEN I AM DONE. FRANKEY IT IS THE STUPID PEOPLE RUNNING THE STATE COUNTY CITY AND NATION. THEY DID NOT HAVE TO EARN IT. WENT TO SCHOOL ON MONEY PRIVIDED BY YOU AND ME. BY

 

[tom5518]

Tim, we lived on our boat at Morehead City Yacht Basin for a couple of years, and then a year or so as remote owners when we moved into a land house in New Bern after 6 years of full time cruising and live aboard. We did have both fire and police presence there a few times, and it was just a 911 call away if needed. We spent a few months in New Bern as well and paid Craven and New Bern taxes (higher!) and also had police and fire services available and on site when needed.

You can bet any tax scoffer would be crying to high heaven if the fire department didn't come in case of a marina or boat fire. In the bigger scheme of things, the property taxes on boats are very nominal, in Morehead mine were about $500 each for city and county.

Makes one ponder how the states that don't tax personal property scrape by.....

 

[Freeebird]

That's alot of rubbish! The marina your in pays property taxes and their built into your slip rent. So just like a home or other real estate owner your paying your fair share of the taxes for local and state services already.

Yep, and where's the benefit to the guys who keep their boats on trailers in their backyards who are paying personal property tax on them?

No state income tax or personal property tax (except for businesses) in Tennessee, and most of our roads are paved. Plenty of LEO's on the water burning LOTS of fuel, so there's always a cop around when you need one, and sometimes when you don't.

 

[fissioneng]

No state income tax or personal property tax (except for businesses) in Tennessee

So your whole state runs on business taxes? Do you have sales tax?

And of course you have fuel taxes.

 

[Freeebird]

So your whole state runs on business taxes? Do you have sales tax?

And of course you have fuel taxes.

Do we have sales tax? Yep, and it's up there pretty good at 9.5% which varies by county. It drops to 7% on single item articles which sell for more than $3,200. Keep in mind we are talking personal property tax, not property tax.

 

[Boatsb]

So your whole state runs on business taxes? Do you have sales tax?

And of course you have fuel taxes.

Dont forget the revnuers and their tax in white whiskey too.

 

[Boatsb]

I guess the real point is taxing non residents who keep their boats there for whatever reason. Its a luxury to have a boat there and it does make sense that they pay a fair share

 

[q240z]

Fair share...funny term.

When my project boat got cleaned out of tools, supplies, and parts last May, the cops came and took a report. There was a plausible suspect, but by policy the cops didn't do any actual investigating. The insurance companies wouldn't pay out without a police report. It seems that what my fair share of taxes pays for mostly, with respect to police, is public sector middlemen in the private sector paper trail.

People who insist that we all have to pay our "fair share" frustrate me because that mindset contributes to support and expansion of inefficient bureaucracy. Plus, it makes all property the state's property. Even annual state registration is just property tax by another name. We're mere renters.

Pretty regressive approach to society, if you ask me.

 

[Boatsb]

I'm sorry the police did not follow up to your satisfaction but my point is more to the ones who put their boat in a state that they don't pay taxes in and get upset when asked to bear some of the cost.

So many times I hear of boaters looking dodge taxes and crusing permits because they don't think they should pay for anything.

 

[Freeebird]

I'm sorry the police did not follow up to your satisfaction but my point is more to the ones who put their boat in a state that they don't pay taxes in and get upset when asked to bear some of the cost.

So many times I hear of boaters looking dodge taxes and crusing permits because they don't think they should pay for anything.

You're beginning to sound like a democrat.

 

[Boatsb]

You're beginning to sound like a democrat.

No bird far the opposite. I know the costs of keeping channels open and security for the water front is pretty high but I live here because I like the boating lifestyle. I pay the state to register my documented vessel and I pay sales tax on the items I purchase for my boat. I spend my money not someone else's and unlike the "d" people I don't try to avoid paying sales tax on major purchases.

I don't like taxes but reality tells me they are a fact of life. I pay them because it's the right thing to do. I grin and bear it. And I don't ask others to do anything I'm not willing to do myself.

 

[Freeebird]

No bird far the opposite. I know the costs of keeping channels open and security for the water front is pretty high but I live here because I like the boating lifestyle. I pay the state to register my documented vessel and I pay sales tax on the items I purchase for my boat. I spend my money not someone else's and unlike the "d" people I don't try to avoid paying sales tax on major purchases.

I don't like taxes but reality tells me they are a fact of life. I pay them because it's the right thing to do. I grin and bear it. And I don't ask others to do anything I'm not willing to do myself.

Yes, and I pay my taxes too and make annual donations with multiple registration fees for multiple boats. You also live in a state that doesn't have personal property tax, so your view (like mine) is a moot point. It just gets old being taxed on everything under the sun.

Just for giggles, how does it work if a non-resident of NC also has personal property tax in their state of residence? Is this a pro-rated deal or do you pay double?

 

[dottieshusband]

Georgia and many States have an annual ad velorem on all personal property. You pay to register and use it, but are also taxed annually on the value. Tennessee has a one time sales and use tax, and an annual registration fee. A common tax dodge in Tennessee, is to claim to be a boat broker. Boats registered for resale by a boat broker is NOT charged the sales and use tax. I'm always amazed how the same boat can be registered to the same owner year after year, without the State catching on.

 

[Boatsb]

Yes, and I pay my taxes too and make annual donations with multiple registration fees for multiple boats. You also live in a state that doesn't have personal property tax, so your view (like mine) is a moot point. It just gets old being taxed on everything under the sun.

Just for giggles, how does it work if a non-resident of NC also has personal property tax in their state of residence? Is this a pro-rated deal or do you pay double?

We do have tangible property taxes that can kill a business if your not careful.

I believe the two states get together and determine who gets what pound of flesh first as they bleed you dry. Or is it you pay some to each buy not more than the higher individual one.

 

[Freeebird]

Georgia and many States have an annual ad velorem on all personal property. You pay to register and use it, but are also taxed annually on the value. Tennessee has a one time sales and use tax, and an annual registration fee. A common tax dodge in Tennessee, is to claim to be a boat broker. Boats registered for resale by a boat broker is NOT charged the sales and use tax. I'm always amazed how the same boat can be registered to the same owner year after year, without the State catching on.

I know that being a dealer with a boat(s) for resale involves just registering as a dealer and having a Tennessee resale tax number, but I've never heard of a broker being exempt as brokers don't typically own boats they are selling. If they do own the boat, it's for sale by owner. AFAIK Tennessee does not license brokers, so I can't see how they would qualify for such an exemption. I do know that annual dealer registration fees are more expensive than individual registration fees. When the dealer sells the boat, they collect sales tax on the sale.

One other thing. When a dealer is involved, the individual boat is not shown on the registration. All fields are open with a "dealer" designation. With that, there is no way the state could tell whether or not a dealer had been in possession of the same boat year after year.

 

[Boatsb]

I know that being a dealer with a boat(s) for resale involves just registering as a dealer and having a Tennessee resale tax number, but I've never heard of a broker being exempt as brokers don't typically own boats they are selling. If they do own the boat, it's for sale by owner. AFAIK Tennessee does not license brokers, so I can't see how they would qualify for such an exemption. I do know that annual dealer registration fees are more expensive than individual registration fees. When the dealer sells the boat, they collect sales tax on the sale.

They theoretically get the sales tax. Half the deals I've seen in the past few years had buyers looking to skirt paying the sales tax.

I'm sure the other brokers have seen similar bs.

 

[Freeebird]

They theoretically get the sales tax. Half the deals I've seen in the past few years had buyers looking to skirt paying the sales tax.

I'm sure the other brokers have seen similar bs.

Well, speaking just for me, and some people from Tennessee... if the dealer doesn't collect sales tax, the buyer will have to pay it in order for the boat to be registered. In short, either the dealer sends in the registration application to the state or the buyer has to go to their local courthouse and pay the sales tax. You can't register a boat without having one or the other happen.

The only dodge I've heard of is people showing up at their local courthouse with a phony bill of sale and/or paying the sales tax difference on a boat they allegedly traded for. Heard about a guy getting busted for that when he bought a big houseboat from an individual. The tax people showed up and wanted info on his alleged trade. Oops! I think they also examine private sale amounts to see if the sale amount is in line with market values.

To make things even more interesting, Tennessee doesn't title boats.

 

[dottieshusband]

The two close friends I have that claim the broker/dealer exemption from paying Sales and Use Tax, neither of them is in the boat business, and both have a tax number from other businesses they are in. Both boats are over 500k, and one guy has had his boat for almost 10 years now? Kinda makes you feel like a sucker for paying the tax.

"Dealers or manufacturers may apply for registration which can be transferred from one vessel to another. A copy of the business license and sales tax number must accompany the application for a dealer or manufacturer number. Such vessels are to be used for demonstration purposes only and more than one vessel may not be operated simultaneously with the same number. In addition, vessels being demonstrated must have the Certificate of Number on board and the registration number must be correctly displayed. However, such vessels may display the number by having it attached to removable signs which can be temporarily but firmly attached to the vessel."

 

[Boatsb]

We get lots of out of state buyers trying to not pay based on "leaving" the state but they never do. You can document a vessel without registering it and paying the sales tax. Then the boat stays here and they never end up paying the tax.

 

[Freeebird]

We get lots of out of state buyers trying to not pay based on "leaving" the state but they never do. You can document a vessel without registering it and paying the sales tax. Then the boat stays here and they never end up paying the tax.

Well, then they get busted when they don't have a Florida use sticker, and you can't get the sticker without proof you have paid sales tax. Trying not to pay sales tax is one thing, but getting away with it is another.

Again, personal property tax is a gift that keeps on giving.