jrc@ritcv.UUCP (James R Carbin) (10/28/83)
Rich Ganns asked about incorporating in the State of Delaware for tax
advantages for boat ownership.
I don't know about other states, but in the Great Empire State (N.Y.) who
always seems to want more and more money coming into their coffers, if you
have a boat "permanently" moored or docked in the state with non-N.Y.S.
registration numbers, you may be asked to prove that you are NOT a N.Y.S.
resident and this includes a permanent out-of-state address, an out-of-state
driver's license, your employer "employs" you in another state, you are
registered to vote in another state, etc. N.Y.S. wants to make sure that
they get all of that 7% (8% in N.Y.C. and 4% or 6% in a few counties) sales
tax. Many people used to buy boats in other states to avoid the N.Y.S.
sales tax even though they lived in New York State. The sales tax people
are wise to this now, so you see far fewer "out-of-state" boats permanently
moored or docked in New York. If they can prove that you bought a boat outside
of New York State while a legal resident of the state, they collect the
equivalent of the sales tax as a use tax.
This would have not affect on incorporating in Delaware if it was an existing
boat, but you would probably get a knock on your door (hatch?) (Bimini top?)
if you tried to buy a new boat. I am not a lawyer, but I think that even if
there was a legal loop hole, it would only be a matter of time before it was
closed.
As far as incorporating in Delaware, I would be interested in knowing about
this myself if it had advantages for a boat that I already own.
as ever,
j.r. {allegra,seismo}!rochester!ritcv!jrc
P.S. The other boat on my finger at my N.Y.S. marina has his boat registered
in Ohio, so that's partially why I know about how strict N.Y.S. can be.