This How-To Guide looks at sales and use tax for vessels in Maryland
1
Is your boat purchased in Maryland for use in the state?
Boats that are purchased in Maryland and expected to be used here will be taxed either under the general sales tax (canoes and other non-powered boats) or under the boat tax. General sales tax is 6%; Maryland vessel tax is 5%. If tax is paid at the time of sale, no further tax will be due in Maryland. If tax is not paid at the time of purchase, it is due to be paid within 30 days of the date that tax is due.
2
Was your boat purchased in another state, or purchased here for use elsewhere?
If a boat was purchased in another state, it will become taxable in Maryland if tax was not paid at the time of purchase, and comes to be principally used in Maryland. At present, principally used is defined to mean that it is in the water or in a structure in readiness for use for a period of 90 days or more during a calendar year. Even if a boat is in Maryland for 90 days, however, it is still not in principal use in the state if it is used for more days during the calendar year in another state (and possibly in another country or jurisdiction).
If you are concerned about your boat becoming taxable, or you receive an assessment from Maryland seeking tax, there is a good deal more information on our website -- www.boatinglaw.com.
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