Taxes

  • 12 Oct 2019 1:43 PM
    Message # 7957272

    I don't have a boat yet, but definitely hope to in the next few years.  Along with routine expenses of ownership, I am interested in the tax aspect.  I don't have a complete understanding, but I realize that there is a wide variance in East Coast states on sales tax at purchase time, and also annual "personal property tax".  I think that a boat (or RV) that is stored or at a marina in Prince William County, VA is not subject to personal property tax.  For cruising and spending significant time in ports other than your home port, there are other possible tax consequences, as explained at the end of this online article Avoid Blunders that Can Cost you Money. See "The Taxman Cometh" portion of the article.

    Please consider sharing information about the tax burdens of boat ownership where you bought and dock/store your boat.  

    The information to share would include the percentage used to calculate the tax, if there is any maximum or minimum tax, the location of your boat, if you have been taxed for having your boat in another state for a certain period of time, etc.


  • 14 Oct 2019 8:03 AM
    Reply # 7959100 on 7957272
    Anonymous member (Administrator)

    Bruce,

     You generally have taxes at purchase to include sales tax, title transfer and registration.  After the purchase the only taxes are your documentation/registration and use fees...all of which are  minor.  The exception would be personal property if the boat is registered in one of those weird Virginia counties that do that, which can be solved by documenting/using it in another location.  

      If you are trying to use a boat as a tax write-off as a second home, you need to make sure it has both a functioning head and functioning galley.  The rules around using a boat as a business are outside of my experience, but people do make that work somehow.

  • 15 Oct 2019 12:05 PM
    Reply # 7985327 on 7957272

    Bruce,

    From your post, it sounded like you are considering at a cruising sailboat.  I believe that PW county may not have personal property tax on boats but I am not aware of many locations in PW county that can accomodate the draft and/or mast clearance of a cruising sailboat.  We once considered Fairfax Yacht Club but you will likely be subject to annual personal property taxes.   Lastly, there are limited cruising destinations in the northern Potomac.

  • 17 Oct 2019 7:29 AM
    Reply # 8061379 on 7957272
    Robert (Administrator)

    Bruce,

    I'm a PW resident and boats don't incur any personal property tax for PW county.  Here is the documentation on that.

    https://www.pwcgov.org/government/dept/finance/Pages/Personal-Property-Tax-Information.aspx

    Rob O

  • 13 Nov 2019 11:20 AM
    Reply # 8105634 on 7957272

    Thanks for the replies, I appreciate any information and not just limited to my current location.  Since I recently retired, I am looking at all options, including possibly moving to another state in consideration of taxes and weather, etc.   

    In your experience, is either tax at purchase time or recurring personal property tax based on the address of the registered owner or the location where the boat is primarily located?

    I understand that any responses are not to be taken as professional tax or legal advice.

    Last modified: 13 Nov 2019 11:29 AM | Anonymous member
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