View Full Version : Can you legally avoid MA state sales tax if you federally document a boat ?


Mr. Sandman
11-16-2009, 09:49 AM
just a thought

Mr. Sandman
11-16-2009, 01:11 PM
After doing some more research, it appears not. It seems you still have to register a boat in the state even though it is federally documented. I think they will get you then. That said there are some clever ways of legally avoiding it but it requires you adapt a certain lifestyle and hire a bunch of lawyers in RI and then has you moving around a lot. Not something I am interested in just to avoid a stupid tax. I guess if I had a mega yacht it would be worth it but for a small boat no.

Why this is bizarre is I was talking with someone who has a really big boat and does this ...he actually paid less tax on his mega yacht than I paid on my 23' seacraft.:confused:

Little Round
11-16-2009, 02:11 PM
Tax exempt you can get by registering commercially if the boat is going to have a state permit on it. I never have paid MA sales tax on a boat other than on my new boat b/c I wanted no waranty issues.

Raider Ronnie
11-16-2009, 05:28 PM
My boat is commercially documented as a fishing vessel, no sales tax ;)

Mr. Sandman
11-19-2009, 07:10 AM
A few more questions...

Little Round,
When you say "register commercially" do you mean federally registering with the USCG or is there a state commercial registration of some kind?

I've always gotten a general boat permit with a couple of endorsements on all my past boat (and paid taxes and had a normal state registration) , but does this (the MA boat permit)qualify my boat as a commercial vessel or is is something different?

Lastly, would you get the permit first or document with the CG (or comm reg with the state first?)

Mr. Sandman
11-19-2009, 04:30 PM
Figured it out...Comm fishermen exemption
thanks

Swimmer
11-19-2009, 06:42 PM
Learn something new everyday here.

Little Round
11-23-2009, 08:48 AM
ST-6E form
Sandman you would qualify with the state permits.
I was away otherwise I would have got back to you sooner. I just went to pick up a boat down south with a buddy, and he is doing the same thing with the sales tax.

Typhoon
11-23-2009, 08:53 AM
in a related story..a guy in Hingham wanted to build a dock off the back of his house. The town said no. He figured out a loop hole in the law that said if you had a commercial fishing license you would be exempt from town bylaws etc. Applied for his commercial fishing license and built the biggest dock in town to spite the conservation commission. You can drive a truck down it.

:D

likwid
12-04-2009, 07:07 AM
After doing some more research, it appears not. It seems you still have to register a boat in the state even though it is federally documented. I think they will get you then. That said there are some clever ways of legally avoiding it but it requires you adapt a certain lifestyle and hire a bunch of lawyers in RI and then has you moving around a lot. Not something I am interested in just to avoid a stupid tax. I guess if I had a mega yacht it would be worth it but for a small boat no.

They register yachts in various places (usually warm and sandy with tasty mixed drinks). The only catch is it has to spend 6 months out of the US or you have to pay taxes on it.

No lawyers or "moving around alot" necessary.
Probably some smoke up your butt though. ;)

Raider Ronnie
12-19-2009, 11:49 AM
You don't mention if you are buying new or used.
Downside of registering/documenting commercial.
Most warranties won't cover the same.