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TOPIC: offshore delivery

offshore delivery 02 Oct 2007 03:19 #1

  • luckydog
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I ended up buying a 3988 from Baltimore, and had the boat shipped back to Southern California. California just changed the law to exempt sales tax on a out of state purchase, or offshore delivery, as long as the boat is out of California for 90 days out of 6 months. Has anybody done this? I'm planning on moving the boat to Ensenada, Mexico (the nickname of the place is the 90 day Yacht Club) for the 90 days. Any suggestions ???? :) :) Thanks Roman

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offshore delivery 02 Oct 2007 05:45 #2

  • mhsachse
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Have not done it yet but am negotiating a similar sale, as we speak. The 91 day clock should start when you purchase the boat. Not just when it arrives in Mexico. The true test is that the boat is supposedly to be moving about waters out of state, not just sitting in port. You might want to cruise it a little. Cedros, Turtle Bay, Mag Bay, etc. Oh, it is 91 days to be overly technical.

In theory make certain that the boat does not enter California, although I do not know how they would know if it came through in the middle of the night on the way to Mexico. Otherwise consumate the sale 3 miles off shore and then head down to Mexico.

You may want to check with an expert, of which I am not.

Good luck and enjoy.

Marv

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offshore delivery 02 Oct 2007 06:30 #3

  • rb4788
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Hi,

Number of years ago we purchased our 4788 in FL with ultimate destination Calif.

I had an atty review our approach (highly recommended) which worked for us when we were audited by Calif:

You have to show USE of the boat outside of Calif, e.g. airline tickets, fuel recepts, docking, repairs, etc. Any days the boat is IN TRANSIT back to Calif DOES NOT count as part of the 90 days even if it is on its own bottom, or on a trailer.

Also, be careful of the state where you purchased the boat as it may have a rule that if the boat STAYS in that state it may be subject ton sales tax. FL did at the time we purchased, it was 90 days ;)

So we got through both but by carefully handling the situation from a date and documentation standpoint. We had GREAT cruising from Ft Lauderdale to St Petersburg. Tax savings paid for transport :)

I would think a cruise down the ICW over a few months would be a wonderful trip. Way different than the Calif Coast.

BTW The Corral in Ensenada is pretty expensive from what I hear.

Good Luck,

Ray

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offshore delivery 02 Oct 2007 17:19 #4

  • steves501s
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Roman, you might want to check with an attorney who specializes in that sort of thing. I sure wouldn't want to leave it out of country, then the state find a loop hold and hit you with a tax bill. I was unaware our wonderful state had finally changed it back to 90 days. I understand the "6 months out of the country law" was hurting the marina repair business. I heard that if you are going to have some major repair work done on your boat, Ensanada might be the place you want to look at, (Bow thrusters etc). Good luck with your new vessel, Steve

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offshore delivery 03 Oct 2007 04:28 #5

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Thanks for all the replys, the 90 day rule was reinstated in the last few months, I spoke to the California State Board of Equalization, as well as to a company that specializes in this. First, you have to either buy out of state, or take a off shore delivery. Second, have to be out of state for 90 days out of the first six months since purchase. Third document , document. Fourth, use the boat when out of area(receipts for fuel, restuarants, air travel, etc. As far as Ensenada, there are two marinas they recommend. Hotel Corel, and Cruiseport, the slips at Corel are 12.50 per ft, Cruiseport 10.25 per ft. Hotel Coral has a spa and pool that boat owners can use. The tax savings substantial. My Boat US policy is good in Ensenada. Both marinas have 24 hour security, and according to cruisers I was able to contact, no theft or security problems. We plan on using Cruiseport. The Mexican Goverment is making sure things go smoothly. The main harbor is used by cruise ships, 3 per week come into Ensenada, Lots of tourists. So hopefully not only will we save on our taxes, we will winter in Mexico, with winter temps in the 70s. The availability of slips is good, which will slowly change as more people take advantage of the tax code, which was the case a few years ago. If there's anything I missed, please post. Thanks Roman

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offshore delivery 03 Oct 2007 16:06 #6

  • steves501s
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Roman, Jeez, your handle fits you, Lucky Dog. If the 90 day rule was in effect last year, I would have considered it. Looks like you have done all your homework, and are not just going down there blind, as I'm sure some have. Have fun in Mexico, have a beer at Pappas & Beers for us all, Steve

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