Boat Taxes...WOW

I was discussing sales tax with a fellow boater today, and as the saying goes, I have "learned something new" every day".
Now, I already know and am certain of these two things, One is;- Boats are a very expensive "hunk of fiberglass"
Secondly, Sales tax adds to the expense, especially the 8.0% charged in NYS.

Here is what I have learned new today....Maryland has capped it sales tax to $1,500.00. Now, if you buy a new boat in NY and pay one million $ dollars, you also have to pay the dealer $80,000.00 in sales tax. Really, not too bad, but then again, NY is not a boater friendly state by any means, especially when you consider that the average price of new yacht, using the definition that a yacht is a boat over 100' long, are selling every day for 2-5 M. Take the average yacht in NY which is selling for 5M. Times that by the 8.0% tax, and you have actually paid an additional $400,000.in sales tax. A bit higher than most states, but NY, being boater un-friendly gives you nothing but a hard time in return.
Second thing I have learned, VA rate is 5% of the selling price. An average yacht, selling for 5 M generates a sales ta of $250,000 per sale per year in VA Sales Taxes. VA is a boater friendly state that allows town municipalities to set tax rates. Currently I am in Middlesex County, and their tax structure is a bit higher than most other counties in the state. This a boating area by far. because if you are not in one of the marine trades, there is just nothing else to do. So, this guy told me, " I pay 1500.00 per year to be in the Chesapeake.....he went on to explain "he has a 40' sailboat which I beleive he said was 1994 Hunter, Salon Deck......his tax bill every year, every January 01 is $1,500.00. What he gets in return are green marinas, clean waters to fish in, boater saftey education courses plus other things....
So far this guy has paid over $15,000.00 (County tax) in taxes for the past 10 years.That is a hell of an expense added to marina costs, and insurance. 40' sounds like a lot of boat, but in reality is is a small sailboat by todays standards. 60 foot is more the average, especially south of Maryland. I can't imangine what their taxes are in this county, but I bet the average boater is paying over $2,000.00 per year, per boat.

Of course, like every tax there are loopholes, and the VA tax code is no exception. The loophole is as follows: Don't be in this county on January 1st, because that way you do not get taxed by the county.
He is now retired and has been so for the past two years, and his plan is to go to FL every year with his boat.

I cannot blame him!!

I will report more as we travel down the coast.