Vessels
The purchase of a vessel which will be used in the State of California is subject to sales tax or use tax depending on the nature of the transaction. There are a number of legal ways to avoid vessel sales tax or use tax in California. Our vessel sales tax service can help you navigate the very complex sales and use tax laws, regulations, policies and procedures governing these transactions and document the use of your vessel to make sure you receive an exemption. Whether you are buying a Bavaria, Beneteau, Catalina, Hatterus, Mikelson, Ocean Alexander, or Sea Ray, there is an exemption which could work for you. There are vessel sales tax exemptions and vessel use tax exemptions for both personal use vessels as well as vessels used for commercial purposes.
The following sales and use tax exemptions are currently available for vessels:
- 12-Month Out-of-State Use and Storage Test
- Six-Month Interstate and Foreign Commerce Test
- 12-Month Commercial Deep Sea Fishing Test
- Family Transactions
- Transfers to Commencing Corporations, LLCs, etc.
- Tax paid on fair rental value instead of cost
In many cases we have been able to help clients after they have made a vessel purchase. Give us a call to find out if our vessel sales/use tax service can still help you avoid vessel sales or use tax by obtaining a vessel sales tax exemption or vessel use tax exemption for your vessel purchase.
We are California vessel sales and use tax specialists. If you are looking to buy a vessel or already own one and are interested in finding out if your particular situation may qualify for a California tax exemption, call us now for a free, no obligation consultation.
