USCG Documented Boats

[Mpellet]

My boat was documented as part of lender requirements. I also reside in a state requiring all taxes and registration fees to also be paid, being ”documented” afforded ZERO benefit aside from additional fees and paperwork to deal with. As soon as my boat was paid off, I quit renewing the documentation. This was about 10 years ago. Unless you live in a state that accepts CG Documentation as a replacement for state registrations requirements, I experienced no benefit at all from having the vessel documented.

NOTE: Above commentary based on experience with a privately owned boat not involved in any charter or commercial activities or clearing customs...

 

[knotflying]

The reason I documented my boat was that I traveled out of the country with it. I felt that having a coast guard documented boat gave me some protection in the event of some other government trying to take possession for some reason. My Parker, which I now use locally in Rhode Island is registered with the state. I look at any costs associated with registering a boat as the "fee" we pay to play and to compensate the state for their services provided. Fortunately for me Rhode Island is boat friendly and has no sales tax on boat sales. However, I do pay a meager registration fee.

 

[Antidote]

As I understand the USCG paperwork...
I need to submit:
A copy of the Purchase Agreement/Bill of Sale.
A copy of the current State Registration.
Form CG-1258
Form CG-5397
If I wait until January 2022 $237 for initial and 5 year registration. $8 to record the Bill of Sale

If this is the case it will save me more $6000 over 5 years. Seems like A pretty good investment of time.

 

[knotflying]

As I understand the USCG paperwork...
I need to submit:
A copy of the Purchase Agreement/Bill of Sale.
A copy of the current State Registration.
Form CG-1258
Form CG-5397
If I wait until January 2022 $237 for initial and 5 year registration. $8 to record the Bill of Sale

If this is the case it will save me more $6000 over 5 years. Seems like A pretty good investment of time.

How does that save you $6,000?

 

[CGSailor]

Make sure you get it all correct - unless they've changed their process you pay the application fee every time you submit material. I gooned up the first one, called to make sure I understood what they needed and then followed the directions I got over the phone on submission number two. I ended up paying for a third submission because whoever I spoke to got it wrong even though the kind person I spoke to when it was rejected a second time acknowledged I did what they said.

 

[Antidote]

How does that save you $6,000?

< $300 for a five year Documentation Vs. >$1300 per year in property taxes and registration to SC and Beaufort County.

 

[knotflying]

< $300 for a five year Documentation Vs. >$1300 per year in property taxes and registration to SC and Beaufort County.

From the website:
"If the documented vessel is propelled by outboard motor(s), the outboard motor is required to be titled, if the state of principle use is South Carolina, and it is five (5) horsepower or greater."
I also find it hard to believe that the county would let you get by without paying the property tax. If it were me I would call anonymously and clarify this. Back taxes and penalties can be expensive. I have no issue with legally doing what you can to avoid taxes etc., but I have heard horror stories from those who did not fully understand the rules and got nabbed. Sometimes the exuberance to avoid can lead to making an error.

 

[Antidote]

From the website:
"If the documented vessel is propelled by outboard motor(s), the outboard motor is required to be titled, if the state of principle use is South Carolina, and it is five (5) horsepower or greater."
I also find it hard to believe that the county would let you get by without paying the property tax. If it were me I would call anonymously and clarify this. Back taxes and penalties can be expensive. I have no issue with legally doing what you can to avoid taxes etc., but I have heard horror stories from those who did not fully understand the rules and got nabbed. Sometimes the exuberance to avoid can lead to making an error.

Mike,

I completely agree that I need to make so what I'm reading is correct; however, this is also on the same web page you quoted from.

Boating - Documented Vessels
If you choose to document your vessel (instead of titling and registering it in SC), please contact the US Coast Guard: United States Coast Guard National Vessel Documentation Center

If a vessel is documented with the US Coast Guard it does not have to be titled or registered in SC.

Outboard Motors: If a documented vessel has outboard motors and is primarily housed in SC, the motor(s) must be titled.

I will have time this week to make the calls and confirm what I'm reading.

Steve

 

[knotflying]

You might not have to register it, but they may want to collect the tax.. I know of very few states that do not have taxes on owning a boat. I am familiar with Rhode Island as being one since I have a boat there. Depending on a state's financial situation they can sometimes get aggressive when they want to. In any event just make sure you are good and I would document who told you and save it for later use in case later on some other person tries to collect.

 

[Antidote]

I talked with the Beaufort County Tax Auditors Office today. Bad news. I would still be responsible for Personal Property Tax to Beaufort County even if the boat is not registered in SC because my primary address is in Beaufort County. Oh well.

 

[knotflying]

As they say, If it is too good to be true, it usually isn't. I am not sure why many municipalities are not more clear on matters like this.