What can be done about sales tax?
Sales tax is definitely the bane of anyone wanting to buy something as expensive as a boat. Many states are getting increasingly aggressive in trying to collect tax on boats regularly operated in their area. If you’re irked at the prospect of paying sales tax on your boat, the best solution is to move to a low-tax state, or at least store your boat there. Tax is generally due in the state that is the home port of your vessel, regardless of where you purchased it. If you plan to buy a large boat and have massive resources, it may be best to find a “flag of convenience” country where the boat can be based. That way, you can completely avoid sales tax with perfect legality. I’d like to hear more about this – does it ever pay to have your cruising yacht registered in a tax haven such as the Caymans, Monaco or Liberia? At what size does this become an attractive option? And does the protection our government can give you in foreign waters make it more practical to stay in the US, or is that
