Tax and Reg in CA

June 15, 2006

I'm trying desperately to figure out which is the best option for me as far as registering my new boat.

I bought the boat in CA but it is regestered in AZ. The previous owner lives in CA but had a non-resident AZ regestration.

I called the AZ people and they told me I can continue to regester it in AZ as a non-resident for a couple of hundred $'s and won't have to pay any other taxes or anything.

I also went to my local DMV in CA and asked them what I would be paying to regester the boat here in CA.

They said they couldn't give me an figure without starting the regestration process but they told me I would be paying reg, tax and also a 'luxury tax' every year?????

I also heard if I want to skip paying CA use tax I need to keep the boat out of the state for 1 year which is fine as I can store it in AZ no problem.

The simple answer to me is to go with AZ but am I missing something? Will I get hit up for more later from the CA DMV?

Has anyone else done this sort of thing?

Thanks!!

June 15, 2006

I'm trying desperately to figure out which is the best option for me as far as registering my new boat.
I bought the boat in CA but it is regestered in AZ. The previous owner lives in CA but had a non-resident AZ regestration.
I called the AZ people and they told me I can continue to regester it in AZ as a non-resident for a couple of hundred $'s and won't have to pay any other taxes or anything.
I also went to my local DMV in CA and asked them what I would be paying to regester the boat here in CA.
They said they couldn't give me an figure without starting the regestration process but they told me I would be paying reg, tax and also a 'luxury tax' every year?????
I also heard if I want to skip paying CA use tax I need to keep the boat out of the state for 1 year which is fine as I can store it in AZ no problem.
The simple answer to me is to go with AZ but am I missing something? Will I get hit up for more later from the CA DMV?
Has anyone else done this sort of thing?
Thanks!!

In California the registration is not the biggie. I will be paying $55 for DMV registration and a $7 tire fee for a new 2006 wakesetter LSV. The luxury tax s what sneaks up on you a couple of months down the road. I am not sure what percent that one is. However, if your boat is more that a few years old, it may not be too bad.

June 15, 2006

In California the registration is not the biggie. I will be paying $55 for DMV registration and a $7 tire fee for a new 2006 wakesetter LSV. The luxury tax s what sneaks up on you a couple of months down the road. I am not sure what percent that one is. However, if your boat is more that a few years old, it may not be too bad.

What about sales/use tax?

June 15, 2006

What about sales/use tax?

Yep, CA does have sales tax..varies county by county, but around 7.75%. Arizona has sales tax...right?

June 15, 2006

I can find no current reference to a luxury tax in California on boats. There is a use tax that may be distracting you. It is the equivalent of a property tax on boats and other vehicles.

From what I read at http://www.dmv.ca.gov/boatsinfo/boatreg.htm, you could probably leave it in Arizona and leave it registered there too! Just read all the details in there and then maybe do a google search.

June 15, 2006

Leagally you should pay Ca sales TAX and register it in CA. If you do you will get hit up for a couple of hundred a year for PERSONAL PROPERTY TAX.

If you keep it in AZ and register it there you will avoid all SALES TAX and PROPERTY TAX. If the boat is in CA then you shoudl pay the tax for cali.

Edited June 15, 2006 by R1LOVER

June 15, 2006

Leagally you should pay Ca sales TAX and register it in CA. If you do you will get hit up for a couple of hundred a year for PERSONAL PROPERTY TAX.
If you keep it in AZ and register it there you will avoid all SALES TAX and PROPERTY TAX. If the boat is in CA then you shoudl pay the tax for cali.

Just a noteI have 2002 sunsetter, bought it used and have to pay around 400 a year luxury tax in Calif. Only goes down a little bit each year.

June 15, 2006

Just a noteI have 2002 sunsetter, bought it used and have to pay around 400 a year luxury tax in Calif. Only goes down a little bit each year.

Yep, that's about right. I just sent a check for $390 to cover my 2004 model. Bastids.

June 15, 2006

Just a noteI have 2002 sunsetter, bought it used and have to pay around 400 a year luxury tax in Calif. Only goes down a little bit each year.
Yep, that's about right. I just sent a check for $390 to cover my 2004 model. Bastids.

Is that on top of the use tax and property tax?

June 15, 2006

What about sales/use tax?

Yep, CA does have sales tax..varies county by county, but around 7.75%. Arizona has sales tax...right?

Arizona doesn't charge sales tax on used vehicles. But you will pay the higher non-resident fee. Unless you can borrow someone's CA address. You will also need to get your boat registered with AZ Fish & Game (can be done by mail, IIRC) and the trailer is done by AZ DVM (might have to bring it there for inspection, IIRC).

California won't charge you sales/use tax if you leave it registered and in AZ for at least 6 months. Then you can just simply register it here and just pay a fee.

The luxury tax in most CA counties is 1% of the estimated value of your boat. It usually goes by who the registered owner was on Jan 1 of that year and the bills are normally sent out in June/July. Here is the kicker.... lets say you sell you boat in Jan/Feb, you will still be getting the tax bill in the mail later that year, and you are responsible for it simply because you were the owner Jan 1. I can't wiat to get my bill in the mail, &^$% CA

Edited June 15, 2006 by stewart

June 15, 2006

Leagally you should pay Ca sales TAX and register it in CA. If you do you will get hit up for a couple of hundred a year for PERSONAL PROPERTY TAX.
If you keep it in AZ and register it there you will avoid all SALES TAX and PROPERTY TAX. If the boat is in CA then you should pay the tax for CA.

I guess your thought here is that he should suffer like the rest of us

June 15, 2006

Leagally you should pay Ca sales TAX and register it in CA. If you do you will get hit up for a couple of hundred a year for PERSONAL PROPERTY TAX.
If you keep it in AZ and register it there you will avoid all SALES TAX and PROPERTY TAX. If the boat is in CA then you shoudl pay the tax for cali.
Just a noteI have 2002 sunsetter, bought it used and have to pay around 400 a year luxury tax in Calif. Only goes down a little bit each year.

Well if you distribute the total amount paid correctly..... lol My trailer is worth about $4000.00 and the boat the rest.

Although my boat was only $24k when I bought it...... More money = More $$

Leagally you should pay Ca sales TAX and register it in CA. If you do you will get hit up for a couple of hundred a year for PERSONAL PROPERTY TAX.
If you keep it in AZ and register it there you will avoid all SALES TAX and PROPERTY TAX. If the boat is in CA then you should pay the tax for CA.
I guess your thought here is that he should suffer like the rest of us

Ya pretty much.... lol

June 15, 2006

FWIW, the boat should be registered in the state where it is primarily used. Ours is garaged in CA, but used in NV, so we have NV registration on the boat and CA plates on the trailer. Per both the NV dept of wildlife website, and the CA DMV website, this is how it should be done. The fact that I don't have to pay the annual property tax (1% of the insane price I paid for the boat ) is just icing on the cake!

June 15, 2006

FWIW, the boat should be registered in the state where it is primarily used. Ours is garaged in CA, but used in NV, so we have NV registration on the boat and CA plates on the trailer. Per both the NV dept of wildlife website, and the CA DMV website, this is how it should be done. The fact that I don't have to pay the annual property tax (1% of the insane price I paid for the boat ) is just icing on the cake!

You do realize that if the county tax assessor finds out it stored in CA you will end up paying the 1% luxury tax. They go by where it's stored, not by where its registered.....

I had a run in with San Bernadido county when I lived in Havasu. We bought a boat in CA and had it delivered. The dealer registered it in CA so we could use it right away MMD WKD. Anyway, long story short I got a bill from San Bernadido. I had to prove that my boat was in fact in AZ, and that I was a resident of AZ, otherwise I owed them tax. It took a couple of go arounds with them before they finally dropped it.

Also, If its in your garage your probably O.K., but if its in storage you might have an issue. Up where my boat is stored, the storage yard HAS to report every boat that is in there facility on 12/31 each year. If they don't, then the tax assessors office will come down and open each unit up and write down the numbers of each boat there. How chicken $hit is that? In addition you may still get a survey from your tax assessor if your boat was initially registered in CA before it went to NV. And the survey asks where it is stored, ie County, not where its registered. I know someone with a NV registration that got popped for several years of taxes cuz his boat was stored in CA. Another give away is your boat trailer being registered in CA..... The county might research that one....

Just an FYI to make sure you leave a clean paper trail. I would do the same if I could store my BU at home, but for now I'm stuck using a storage facility.

I got a bill on my 03 LSV after I sold it in March 04. I told Sac County I sold it and they said, tough doodie. I then told them it was stored in NV @ Zephyr cove prior to its sale.... They wanted me to provide them with storage receipts, etc.. bottom Line I had to pay tax on a boat I didn't even own anymore And the sad thing is...... I'm going to have to do that again this year since I sold my 05 in April

1,307 · June 15, 2006

Just one correction to what Stewart said.

You have to have the boat out of the state of california for one year after purchase, not six months.

You might wanna verify this with your pusher, Stew.

Go here and start reading.

http://www.boe.ca.gov/

1,307 · June 15, 2006

Here's a better link within that site.

http://www.boe.ca.gov/sutax/faqtrans.htm#8

You'll want to read #8,9,15 D,15 I, and #18 (1594)

Or, just read the whole thing. I took a 3 hr. class on this stuff a month ago.

June 15, 2006

Just one correction to what Stewart said.
You have to have the boat out of the state of california for one year after purchase, not six months.
You might wanna verify this with your pusher, Stew.
Go here and start reading.
http://www.boe.ca.gov/

That's a different topic. That is if you buy in CA, register in CA but use out of state.. not if you bought out of CA and then bring in. When I brought in my truck I had to wait six months to avoid paying the difference AZ vs CA in tax.

As far the diesel pusher, yes 1 year. In fact, I will need you to collect some receipts on your way to TX to prove my out of state use

1,307 · June 15, 2006

No problem.

I'll keep all the reciepts but, they're gonna show gas.

June 15, 2006

FWIW, the boat should be registered in the state where it is primarily used. Ours is garaged in CA, but used in NV, so we have NV registration on the boat and CA plates on the trailer. Per both the NV dept of wildlife website, and the CA DMV website, this is how it should be done. The fact that I don't have to pay the annual property tax (1% of the insane price I paid for the boat ) is just icing on the cake!
You do realize that if the county tax assessor finds out it stored in CA you will end up paying the 1% luxury tax. They go by where it's stored, not by where its registered.....
I had a run in with San Bernadido county when I lived in Havasu. We bought a boat in CA and had it delivered. The dealer registered it in CA so we could use it right away MMD WKD. Anyway, long story short I got a bill from San Bernadido. I had to prove that my boat was in fact in AZ, and that I was a resident of AZ, otherwise I owed them tax. It took a couple of go arounds with them before they finally dropped it.
Also, If its in your garage your probably O.K., but if its in storage you might have an issue. Up where my boat is stored, the storage yard HAS to report every boat that is in there facility on 12/31 each year. If they don't, then the tax assessors office will come down and open each unit up and write down the numbers of each boat there. How chicken $hit is that? In addition you may still get a survey from your tax assessor if your boat was initially registered in CA before it went to NV. And the survey asks where it is stored, ie County, not where its registered. I know someone with a NV registration that got popped for several years of taxes cuz his boat was stored in CA. Another give away is your boat trailer being registered in CA..... The county might research that one....
Just an FYI to make sure you leave a clean paper trail. I would do the same if I could store my BU at home, but for now I'm stuck using a storage facility.
I got a bill on my 03 LSV after I sold it in March 04. I told Sac County I sold it and they said, tough doodie. I then told them it was stored in NV @ Zephyr cove prior to its sale.... They wanted me to provide them with storage receipts, etc.. bottom Line I had to pay tax on a boat I didn't even own anymore And the sad thing is...... I'm going to have to do that again this year since I sold my 05 in April

Thanks for the info Stewart. I really did try to do my homework on this ... and it's what we did with our 01 Tige. I've dealt with the tax collector's dept, etc. but once that first year has gone by, I've never had any problems. I guess at this point I'll cross my fingers, bury my head in the sand, and hope for the best.

June 16, 2006

OK, after a visit to the CA DMV and much time on the phone to the CA DMV & AZ Fish & Game I think i've got it all understood. Here goes...

I can transfer & register the boat in AZ as a Non-resident for $263 with no additional taxes or anything.

CA DMV tells me I have to keep the boat out of CA for 1 year so I don't have to pay sales/use & property tax. Not a problem as we'll be using the boat mostly in Havasu & Parker, AZ.

After 1 year I can bring the boat into CA and even re-register in CA without paying any taxes.

The kicker is that on July 1st 06 the 1 year test period goes down to 3 months! If i'd have waited a couple more weeks to get the thing,

Edited June 16, 2006 by Arkid

June 16, 2006

OK, after a visit to the CA DMV and much time on the phone to the CA DMV & AZ Fish & Game I think i've got it all understood. Here goes...
I can transfer & register the boat in AZ as a Non-resident for $263 with no additional taxes or anything.
CA DMV tells me I have to keep the boat out of CA for 1 year so I don't have to pay sales/use & property tax. Not a problem as we'll be using the boat mostly in Havasu & Parker, AZ.
After 1 year I can bring the boat into CA and even re-register in CA without paying any taxes.
The kicker is that on July 1st 06 the 1 year test period goes down to 3 months! If i'd have waited a couple more weeks to get the thing,

Just wait for another month to register it..... simple....

June 16, 2006

OK, after a visit to the CA DMV and much time on the phone to the CA DMV & AZ Fish & Game I think i've got it all understood. Here goes...
I can transfer & register the boat in AZ as a Non-resident for $263 with no additional taxes or anything.
CA DMV tells me I have to keep the boat out of CA for 1 year so I don't have to pay sales/use & property tax. Not a problem as we'll be using the boat mostly in Havasu & Parker, AZ.
After 1 year I can bring the boat into CA and even re-register in CA without paying any taxes.
The kicker is that on July 1st 06 the 1 year test period goes down to 3 months! If i'd have waited a couple more weeks to get the thing,
Just wait for another month to register it..... simple....

I thought about it but the seller already filled out the release of liability and dated it last week.

1,080 · June 16, 2006

Leagally you should pay Ca sales TAX and register it in CA. If you do you will get hit up for a couple of hundred a year for PERSONAL PROPERTY TAX.
If you keep it in AZ and register it there you will avoid all SALES TAX and PROPERTY TAX. If the boat is in CA then you shoudl pay the tax for cali.
Just a noteI have 2002 sunsetter, bought it used and have to pay around 400 a year luxury tax in Calif. Only goes down a little bit each year.
Well if you distribute the total amount paid correctly..... lol My trailer is worth about $4000.00 and the boat the rest.
Although my boat was only $24k when I bought it...... More money = More $$
Leagally you should pay Ca sales TAX and register it in CA. If you do you will get hit up for a couple of hundred a year for PERSONAL PROPERTY TAX.
If you keep it in AZ and register it there you will avoid all SALES TAX and PROPERTY TAX. If the boat is in CA then you should pay the tax for CA.
I guess your thought here is that he should suffer like the rest of us
Ya pretty much.... lol

Love the honesty here...lol I get pissed every year I get the tax assessment from the Assessor for property tax on a ficken boat!!!

June 16, 2006

Love the honesty here...lol I get pissed every year I get the tax assessment from the Assessor for property tax on a ficken boat!!!

It's a joke, that's why i'm totally cool not keeping my boat in CA for the first year. I'll save over $3000 which should just about pay for the gas i'll be using!

June 20, 2006

Love the honesty here...lol I get pissed every year I get the tax assessment from the Assessor for property tax on a ficken boat!!!
It's a joke, that's why i'm totally cool not keeping my boat in CA for the first year. I'll save over $3000 which should just about pay for the gas i'll be using!

AZ caught on to all the "out of state" owners. They raised the rates to like $330 for "non-resident" registrants. And so it goes! Still less that CA.....ya and don't ya love the property tax on a "boat". Grab the KY

Welcome to TheMalibuCrew!

Tax and Reg in CA

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