[PUP] Documentation

[John Marshall]

As I've been told (not legal advice, but what I've picked up by  
asking around):

	If you are a Washington state resident and you own the boat and you  
have it in WA, then it doesn't matter what it says on the stern, you  
owe the state use tax (even on foreign flagged vessels). However, out- 
of-state corporations and foreign corporations can eliminate the  
"state resident and you own the boat" clause.

But even then, a nonresident (including nonresident or foreign  
corporate owner) who keeps the boat in the state more than 6 months  
in a year owes the tax. So you get nailed that way too unless you  
keep it in Canada at least half the year. Canada and WA talk and both  
can (and do) hassle owners who try this, but I think the Canada  
shuffle is legal. But it means having two slips.

The secondary question is whether you get caught. The BVI on the back  
might help with that, but that's another subject.

You did the reasonable thing in paying the tax, IMHO. Each state in  
the US is different, but WA has closed most of the loopholes for  
anyone who wants to keep their boat in WA waters. No way to legally  
avoid it if you berth it here.

But then, WA is one of the few states which doesn't have an income  
tax, so they have to work hard to get the money other ways.

John
On Oct 24, 2007, at 8:57 PM, Scott Bulger wrote:

> George,
>
> As soon as I sent that I realized the word insane wasn't  
> appropriate, if you
> were here (inside my peanut sized brain) you would have heard it  
> used as an
> explicative, more like a surfer guy saying "radical" or something  
> like that.
> Believe me, I am fully aware your boat is more than capable for the  
> journey!
>
>
> I paid 8.6% in Washington.  I agree 15% is on the bounds of sanity  
> (there I
> go again!).  My point was twofold (and I'm the first to admit I  
> don't fully
> understand all the issues):
>
> 1.  If you own and operate a boat in the US, somehow the piper  
> needs to get
> paid.  Those young men and ladies in the USCG need to get paid and  
> maintain
> their boats, somehow I always picture my check making it's way into  
> their
> pockets (I know that's delusional).  The same is true in your host  
> country.
>
> 2.  when I see a boat in Seattle WA year after year and it says  
> "BVI" I know
> it's some kind of scheme to escape the tax.  I guess they pay  
> plenty of tax
> when they pay their moorage and maintenance, but somehow it just  
> doesn't sit
> right.
>
> Maybe I'm just being unreasonable because I'm not smart enough to take
> advantage of such schemes?  I don't know what to think about people  
> who
> really are out there and nomads moving from one country to another.
>
> I guess what this all means is:  What is the purpose behind flagging
> (documenting?) a boat in a country anyway?  I think in the US the  
> process is
> rooted in the military being able to seize your boat in times of  
> war and use
> it for national defense.  I don't know what it means in other  
> countries?
>
> Scott Bulger, Alanui, N40II, Seattle WA
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