New Taxes on Yachts?

[Flutterby]

Part of the new budget compromise:

"One of the tax loopholes discussed by lawmakers that may generate revenue is for yacht owners.

Yacht owners have never had to pay taxes on yachts bought outside California, but now they may have to pay annual taxes."

http://www.kcra.com/politics/17471427/detail.html

 

[abdiver]

I don't understand. I bought my houseboat out of state and I didn't find any loophole, I have been paying taxes on it every year.

Perhaps it is targeting the people who own mega yachts that they keep out of state or even out of the country.

Rod

 

[towcapt]

I think there are two different taxes in question, one is sales tax and one is property tax.

 

[Flutterby]

We all pay property taxes to the county in which our boat resides. [I'm so glad some of that goes to pay for schools where my boat gets a good education. LOL] And when we purchased our boat, we paid state sales tax via DMV.

This is a state proposal and it is unclear exactly what they mean. But it sounds good to Mr & Mrs General Public, especially in an election year!

 

[etyppo]

According to http://www.kcra.com/politics/17481450/detail.html it sounds like you'll no longer be able to avoid paying sales tax on yachts and other big ticket items by taking delivery out of state.

 

[abdiver]

Sales tax would be a one time thing, not an annual tax.

There has been a way to avoid the sales tax if you took delivery outside of California and then kept the yacht out of California for some period of time.

Rod