[PUP] taxes and registration

[bob Austin]

Scott, The 8.6% you paid in Washington State did not go to pay the Coast
Guard.  The federal income tax you pay (paid) each year pays that.

If you are not using a boat in a state, then I see no reason to pay tax to
that state. It is legal to document your boat anywhere you wish, and avoid
paying that state tax.

At least in Florida, if a foreign flagged boat is in the waters more than 90
days, they are hit with various taxes--and sometimes penalities which are
substantial.  I know that Washington also goes after people who leave their
boats in the Washington marinas.  There are tax people who walk the docks and
check off the boats--because I was contacted by these people when I kept my
boat in Washington state.  I had to prove that I had paid sales tax in
California on the vessel, and I had to pay a small fee to Washington state,
even though I left the boat in the marina during the winter only.

There are also a number of legal ways to deminish various taxes, and there is
nothign wrong with taking these steps.  That is what tax lawers and
accountants make the big bucks for.

The US documentation has nothing to do with either protection of the US
military or the military being able to sieze your vessel for national defense.
It is a good way of "flagging" your vessel when traveling overseas.  On
occasion rarely it may save some state taxes.  It gives a paper trail of
ownership and any liens against the vessel.  I have taken state registered
vessels to Mexico, with no problems.  But all the vessels I took to multip
countries were documented.

Bob Austin