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About Capt Lou
Expertise
I can answer questions about boat buying, crusing destinations along the East Coast from Maine to the Florida Keys, powerboat operation, powerboat accessories, yacht club membership, commercial fishing, boating laws, the Coast Guard Auxiliary, and the history of Boston Harbor Islands National Park.

Experience
Hosted "Nautical Talk Radio" for 14 years, a weekly, hour long program on WATD 95.9FM in Massachusetts and host of "Nautical Talk" on WPRO 630AM for 2 years. Have cruised from Maine to the Florida Keys and have owned outboard and inboard powerboats since 1976.

Organizations
Metropolitan Yacht Club 1980 - Present (1992 Commodore)
United States Coast Guard Auxiliary Flotilla 1204 1980 - 2004
Save The Harbor Save The Bay (Boston)
Stellwagen Bank National Marine Sanctuary Advisory Council
Quincy Bay Race Week
Mass Boating and Yacht Club Association
Commodores Club of America
Boat Writers International
Boat U/S
Mass Striped Bass Association
Rhode Island Saltwater Anglers Association

Awards and Honors
Articles about "Nautical Talk Radio" have appeared in National Fisherman Magazine, Power and Motoryacht Magazine, Yachting Magazine, Soundings Boating Newspaper, Offshore Magazine, and the Coast Guard's N'Oreaster Magazine.

Winner of The Best Interview Of The Year Award (1995) in Boston radio presented by Achievement In Radio (A.I.R.) and sponsored by Ford Motor Company and the March of Dimes. Finalist in 1996 and 1999 for Best Interview of The Year Award presented by A.I.R. Finalist for Boston's Best Locally Produced Public Affairs Radio Program (1997) presented by A.I.R.
WINNER OF MASSACHUSETTS/RHODE ISLAND ASSOCIATED PRESS ?BEST TALK SHOW? - 2003 RECIPIENT OF THE AMERICAN LIGHTHOUSE FOUNDATION?S LEN HADLEY PRESERVATION AWARD - 2002 RECIPIENT OF JOSHUA JAMES LIFESAVER MEDAL FROM PT ALLERTON COAST GUARD COMMANDER - 2003
 
   

You are here:  Experts > Recreation/Outdoors > Sailing > Yachting > massachusetts sales tax

Topic: Yachting



Expert: Capt Lou
Date: 4/1/2007
Subject: massachusetts sales tax

Question
I am a Ma. resident who purchased a used boat in Ma. The boat was hauled to
Rhode Island by a commercial boat hauler. It was rigged and launched in R.I. It is
used exclusively in R.I. and also stored over winter in R.I. Am I resonsible for
Masachusetts sale tax?

Answer
Now I am not a lawyer or a tax expert, but here is my take on your situation. If you bought the boat in Massachusetts and registered it in Massachusetts, then in most cases you would be responsible for the 5% Massachusetts sales tax. There are certain exemptions to this tax; for instance if you were a commercial fisherman or a boat dealer, there would be no sales tax due.

Now if you register the boat in Rhode Island, and dock and store the boat in Rhode Island, you could avoid paying the Massachusetts sales tax. I realize that Rhode Island exmepts anything to do with boats from their sales tax.

So, the bottom line to your question is: if you bought the boat in Masaschusetts, then Massachusetts is owed 5% of the actual price paid less any trade in value. However, you only pay the sales tax when you register or document the boat in Massachusetts. If you do not register the boat in Massachusetts, you could avoid paying that state the sales tax. If at a future time you move the boat to Massachusetts, or use it in Massachusetts for longer than 90(?) consecutive days you, you then could be assessed a 5% "use" tax. The tax in Massachusetts is called a Sales and Use Tax!

Best of luck to you in avoiding the tax.

I will add one more caveat. A few years ago I befriended one of the state's revenue officers. He told me that sometimes the state lets tax scofflaws go a few years on purpose before notifying them of the penalties and interest owed on the sales tax. It sounds mean and devious, but I believe it to be the truth! I have also heard of instances where a boat has been chained to the dock until the owner pays the tax!

If you have more questions, contact me directly at NauticalTalk@aol.com.


Listen to the live broadcast of "Nautical Talk Radio" with Capt Lou and crew, Sunday mornings from 11 - 12 noon (Boston time) on radio station 95.9FM WATD in Marshfield, Massachusetts, and around the world on www.nauticaltalk.com.  You can also listen to the most recent show anytime during the week at www.nauticaltalk.com.

* Winner of Mass/Rhode Island Associated Press "BEST TALK SHOW"
* Recipient of Joshua James Lifesaving Medal for public service  
* Recipient of American Lighthouse Foundation's "LEN HADLEY AWARD"  
* Winner of Boston's Achievement In Radio "BEST INTERVIEW" AWARD 
* Nominated Boston's A.I.R. "BEST PRODUCED PUBLIC AFFAIRS PROGRAM"  

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