Coast Guard documented vessel

[ICDEDPPL]

The boat I`m purchasing is Documented. Is the tax loop hole too good to be true?

Transition any state-registered boat over 25 feet to federal documentation. The qualification for the Coast Guard documentation of a vessel is a minimum length overall of 25 feet and displacement of 5 gross tons. When purchasing a boat that meets these guidelines but happens to be registered with the state department of motor vehicles or wildlife and fisheries, it is a good idea to file for Coast Guard documentation and remove the vessel from state registration. Upon approved documentation, the vessel falls under federal jurisdiction and the owner is no longer required to pay state sales tax.

3
When purchasing a boat that is already documented by the Coast Guard, re-document the vessel after the sale. There is no advantage to removing a vessel from Coast Guard jurisdiction and registering it with the owner's home state. Documented vessels should remain documented. Transferring the documentation from one owner to the next is not a taxable event and thereby avoids any sales tax. The fees to do so total less than $300 regardless of the vessel's size or value.

[eightsecmopar]

When I purchased my boat it was also Documented. After talking to quite a few people I decided to pay the tax and register it with Illinois. One thing to remember when your boat is Documented you don't get any IL numbers. That is a sure way of getting stopped every time you go out. I didn't want the hassle of that.

[ICDEDPPL]

Did you still renew with the Coast guard then? What would be the advantage to having the boat documented if its registered in the state. Then you have to renew with Coast guard and the state.

I was pretty sure Nazinois wouldnt allow such a loop hole and miss out on double/ triple taxation

[SC288]

Not to confuse things here as I am an Indiana resident but Indiana requires that the vessel still be registered even though it is documented....however I do not have to display any registration #'s just the IN sticker.

[Awaken]

The same is true in Maryland. My boat was originally documented. I decided (and my bank strongly encouraged me) to keep the boat documented. Apparantly it has better national exposure in the unfortunate event it is stolen, moved to another state that does not require titles (like Delaware) and register the boat.

However, I still had to register the boat with the State of Maryland in order to get my "tax" sticker. Without that sticker, the DNR will certainly pull you over in Maryland.

[10x]

Not to confuse things here as I am an Indiana resident but Indiana requires that the vessel still be registered even though it is documented....however I do not have to display any registration #'s just the IN sticker.

Correct, you still have to display the state decal, but you need to affix the coastcuard name or #'s to the hull in the bilge where it's readable when you open the hatches.
Mine was documented when I bought it, and I left it that way. I've never been stopped other than at the boat launch to have a "safety" check, by the local coasties.

[SC288]

Yes my # is permanently affixed to the inside of the bilge.

[visual contact]

The same in Texas, documented vessel has to be registered with Texas parks and wildlife. Cost $110.00 and the sticker is good for 2 years.

[MILD THUNDER]

According to IL Dept of Natural resources, they state that if the boat is moored in illinois waters, for more than 60 days, then it must be registered with the state of illinois. So, unless you plan on getting a slip, then technically, you dont have to register it in the state of illinois. You can just document it with the coast guard, and call it good. If you dont title and register in illinois, than why pay the sales tax to them.

But, on lake michigan, you probably wont have a problem, because its common up here to have a documented boat. However, in some small inland lakes, the local sheriff and conservation cops will more than likely stop you if they dont see registration numbers on the boat. You can always pull out your documention certificate and show them, but at that point they probably will start checking safety stuff, and see how much you had to drink. Which in the end might cost you more than the sales tax itself! Theres alot of loopholes on this topic, but I am in favor of Documenting the Boat.

[MILD THUNDER]

Copied from Illinois DNR website

Registration And Titling
Boats which must be registered and titled: All watercraft operated on the waters
within the jurisdiction of this state shall be registered and titled.
Boats exempted from registration and titling: Watercraft shall not be required to
be registered and titled under this Act if it is:
1. A watercraft which has a valid marine document issued by the United
States Coast Guard, EXCEPT THAT any such documented vessel used
upon the waters of this State for more than 60 days in any calendar year
shall be registered in compliance with this Act.2. Already covered by a number in full force and effect from another
state, if such boat will not be within this State for a period in excess of
60 consecutive days.
3. A sailboard.
4. A watercraft from a country other than the United States temporarily
using the waters of the State.
5. A watercraft owned by the United States, a state or subdivision thereof,
used solely for official purposes, and clearly identifiable.
6. A vessel used exclusively as a ship’s lifeboat.
7. Watercraft while competing in any race approved by the Department,
or if the watercraft is designed and intended solely for racing while
engaged in navigation that is incidental to preparation of the watercraft
for the race. Preparation of the watercraft for the race may be accomplished
only after obtaining the written authorization of the
Department.
8. Non-powered watercraft owned and operated on water completely
impounded on land belonging to the owner of the watercraft. This does
not apply to waters controlled by a club or association.
9. A canoe or kayak which is owned by an organization which is organized
and conducted on a not-for-profit basis with no personal profit inuring
to anyone as a result of the operation.
Registration – Title Application: The owner of each watercraft requiring registration
and titling by this State shall file a watercraft application with the
Department. The application shall be signed by the owner of the boat, and shall
be accompanied by the required documents (New boats: you must surrender the
original properly endorsed Manufacturer’s Certificate of Origin; Boats previously
registered or titled in another state; you must surrender the owner’s registration
certificate an/or title; Illinois titled boats: you must surrender the owner’s Illinois
title) and appropriate fee.

[Cigboat#1]

The last three or so boats I have had were documented with the Govt. Do not think for 1 second that you can get away with just the documentation and not paying the tax and not having state stickers on the boat. It may take the state a few months or even six months to figure it out and then you will get a letter in the mail and they will hassle you!!!!You will be lucky not to wind up in court......There are many benefit's to having a boat documented and it provides protection for you and your boat should you go to another country.....


Jim

[Heavyhauler]

I bought a documented vessel in TX, brought it to SC, transferred the documentation to my name via the Coast Guard and in a few days I got a questionaire from the State of SC to fill out so they could charge me property tax. Apparently the Coast Guard notifies the State where the vessel is moored when registration changes, because I had to pay state property tax and in SC they assess and tax you yearly. SC does not require you to register with DNR when documented, but since you don't escape the tax, it's pretty much a trade off on whether you register with the State or document with the Coast Guard.

[ICDEDPPL]

According to IL Dept of Natural resources, they state that if the boat is moored in illinois waters, for more than 60 days, then it must be registered with the state of illinois. So, unless you plan on getting a slip, then technically, you dont have to register it in the state of illinois. You can just document it with the coast guard, and call it good. If you dont title and register in illinois, than why pay the sales tax to them.

I`m gonna have to agree with this statement. However has anyone done this not had issues from the tax Nazis?

[MILD THUNDER]

Not to confuse things here as I am an Indiana resident but Indiana requires that the vessel still be registered even though it is documented....however I do not have to display any registration #'s just the IN sticker.

What do they charge you annually in indiana for the registration fees?

[Boatfreak]

I just renewed my A.T. for the year and it was $280.

[boatme]

I had my Black Thunder Documented and was pulled over often because the weekend warrior water cops had no clue why i had no numbers or stickers I finally registered it and got the sticker (still no numbers) and it slowed down the hassles but still was pulled over every once in a while and asked "Where the hell are you boat numbers" then as previously stated, we had to go through the safety checks ect....

[Magic Medicine]

What do they charge you annually in indiana for the registration fees?

It depends on the size and value on the boat, In indiana you pay excise tax Mine was over 200 and less than 300 for this year, can't remember the amount

[Magic Medicine]

It has been pointed out already by Joe and Mark.

Dan,
No reason to give them a chance to go for a fishing expedition, if you drink then well you know!

[SC288]

What do they charge you annually in indiana for the registration fees?

Joe like Andy said below it is a couple hundred bucks as it is an annual renewal similar to a licence plate.

[eightsecmopar]

In my opinion when you don't have the IL numbers on the side of the boat that's just another reason for them to stop you. Had this happen with my first boat, it was just a pain. I'm sure the state is going to get their tax money sooner or later.