How do boat taxes work in CA?

[th365thli]

Hello friends.

2 years ago I moved from San Jose to Greenville NC. It was a big shift culturally and monetarily. Things are a LOT cheaper here.

In a year, my girlfriend will finish her program and we are debating whether to move to Raleigh NC or Sacramento CA. Truth be told, if it was an even competition we would choose Raleigh in a heartbeat, but her entire family is in Sacramento, which complicates things.

I know Sacramento has great fishing around it. I'm not worried about the fishing. I am worried about how much it's gonna cost to live in CA again. Apart from gas prices, I'm also wondering how CA taxes on boats work. Is it just a property tax or are there other fees I should be aware of? The boat is a 2018 Falcon 195. Do they tax the boat or the engine and trailer as well?

[DanC]

Not exactly sure though I think there is a type of property tax? I will say from the way things are going you will soon be taxed for looking at a boat...

[JakeV77]

I live in Sacramento county. I have a 2012 nitro z8, I pay $500 a year as and added property or “luxury” tax.

[MichaelB]

You are taxed 1% of the "assessed value" of your boat every year as property tax, in the County the boat is stored. The assessed values are generally on the low side. If your boat is worth $40k ..... your tax bill = $400.
This is in California only .... as far as I am aware.

[Dan Dunsford]

The boat should be only taxed on the boat and motor, not the trailer cost. I was taxed on all three when I bought my Triton. I brought this up to Solano Tax department and they refunded the money I was taxed on my trailer. I believe many boat owners are getting taxed for their trailer which is against the law.

[not4un]

Be smart and don’t move back to CA.

[th365thli]

Thanks guys for the responses.

It sounds like, and I hope, it is on the low side of the assessment. North Carolina also has a property tax on boats. Less than 1% for sure, but they assessed it way high.

I can breathe a small sigh of relief that if we did choose to come here then I won't be taxed up the *** for owning a boat.

Property values and gas prices on the other hand.....

[th365thli]

I live in Sacramento county. I have a 2012 nitro z8, I pay $500 a year as and added property or “luxury” tax.

That's a bit high isn't it? That means your boat is assessed at a value of $50,000

[JakeV77]

I bought used last year, they assessed it at 37k didn’t challenge it. Think I will this year when the bill comes in. It’s California so not expecting much of a change in that regard. Taxed at 1.19%, so it was actually $440, I rounded up.

[monte300]

My boat is a 2000 Triton TR19 and my personal property tax is now under $100 a year. I wonder if the recent surge in used boat values will have much effect on the values of our used boats from a personal property tax perspective?

[LookoutRanch]

Overall it’s more expensive here in CA. I live north of Sacramento and yes it does have great fising in pretty much all directions, but things are expensive. Hence why we are moving to Tennessee or South Carolina as soon as I retire in a few years. But when you add up the higher fees here to make a 300 mile round trip it’s going to be more than NC. Add in the somewhat higher launch fees of some places, increased labor cost for maintenance, tow vehicle registration(my 2012 Diesel), taxes on my 2017 Ranger, together are well over $1400 a year. If you have school age kids, look at the schooling differences. That alone might push you away from CA.

[Hookset5]

Depends on many jurisdictions..

Talk to a county worker it goes like this
County>state>city

State worker
State>county>city

City worker
Karen>City<County>state

There are 58 counties in CA
There are 482 cities in CA
There are 17 thousand Karen's

Must ask them to be certain. Which order? Beats me, it fluctuates. Good luck!

[monte300]

Annual personal property tax on your boat and motor are tax deductible

[AnglersPursuit]

There's a guide their supposed to follow but they rarely do since they govern themselves. They absolutely will try to include the trailer thinking you don't know any better. The valuation will be way higher so they can tax you more. My first one was higher than I paid for the boat new. Basically had to threaten to take them to court to get them to a reasonable amount and remove the trailer. Kinda like most shady entities they prefer if you don't shine a light on them.

Long story short, it's up to them and that's the way power hungry california likes their local government.

My 3rd valuation went up from the 2nd. I asked em point blank, "so you're saying me running my boat all year actually made the value go up?" In what world is that true? Caliworld.

Keep an eye on it and don't be afraid to send them a nice document outlining the law and steps you will take to keep them in accordance with it.

There's also threads from previous people talking about this if you search the forum.

My advice. Don't come here. We're imploding and calling it awesome!

[gabuelhaj]

Which is why you shouldn't buy a new boat, unless it's a business.

Buy used, get assessed at low price or low bill of sale to establish low value and then re-power.

Good luck!

[Pepsi man]

Which is why you shouldn't buy a new boat, unless it's a business.

Buy used, get assessed at low price or low bill of sale to establish low value and then re-power.

Good luck!

Excuse my ignorance, but I just bought a new bass boat. How will they bill you, is there something you have to report after you buy the boat? I definitely don't want to mess with them and want to get ahead of it. I just thought you had to pay the sales tax at the point of purchase and pay registration like a car..I looked into it and I now see you have to pay a property tax but gave no idea in how to pay it or even get the boat assessed.

[monte300]

Which is why you shouldn't buy a new boat, unless it's a business.

Buy used, get assessed at low price or low bill of sale to establish low value and then re-power.

Good luck!

Excuse my ignorance, but I just bought a new bass boat. How will they bill you, is there something you have to report after you buy the boat? I definitely don't want to mess with them and want to get ahead of it. I just thought you had to pay the sales tax at the point of purchase and pay registration like a car..I looked into it and I now see you have to pay a property tax but gave no idea in how to pay it or even get the boat assessed.

Do nothing, trust me they will find you, you will get a bill in the mail

[Hookset5]

Just bring a checkbook to the launch ramp, its a crapshoot in CA. Why cant the mussels be eradicated? We can send information through airways, capture electrons to propel motors, explore outer space, but can’t kill a clam?
Bring your checkbook

[Pepsi man]

Which is why you shouldn't buy a new boat, unless it's a business.

Buy used, get assessed at low price or low bill of sale to establish low value and then re-power.

Good luck!

Excuse my ignorance, but I just bought a new bass boat. How will they bill you, is there something you have to report after you buy the boat? I definitely don't want to mess with them and want to get ahead of it. I just thought you had to pay the sales tax at the point of purchase and pay registration like a car..I looked into it and I now see you have to pay a property tax but gave no idea in how to pay it or even get the boat assessed.

Do nothing, trust me they will find you, you will get a bill in the mail

Gotcha..this is intriguing to me since I've bought and sold 4 boat within the last 15 years and never once have I had a bill sent to me for property/use tax..does the boat have to be above a certain value or is there a criteria you meet that necessitates the need to be taxed? I mean I'm not rich by any means and not that poor and I'm now just hearing about this but hadn't had any bills from them at all..

[monte300]

I think you have been very lucky to not be taxed. I've had to pay personal property tax for my boats most of my adult life.

[Whoopbass]

I'm pretty sure they have a list of the brand of boats they tax. I had a 98' Crestliner bass boat that I purchased almost 10 years ago and paid $5400 for it. Told DMV I paid $1K for it never got taxed. I see these boats being listed today for $8K-$13K which is laughable but I doubt anyone running a Crestliner will pay the luxury tax unless maybe they buy through a dealer. Crestliner is an aluminum boat company so I assume the county considers you broke if your riding in aluminum.
About 5 years ago I buy a 03 Ranger 520 through a private party and I tell DMV I paid $1K for it. Six months later I get a bill from the county for the luxury tax for $130.
If your boat is worth less then $5K they quit taxing you. So at the rate my boat is depreciating by the county I should be free from the boat tax in 30 years.

[TonyL]

Don't come back if you can swing it ! On top of all of the above conversation, don't forget the drought and water games !! I am no expert like Barrack on the subject, but we have a drought, yes, but I believe the bigger issue is the water games going on within the state, reason for our reservoirs in this area being run down to dangerous boating levels. They tell us that its bad and we all need to conserve water yet there are condos with 2 toilets a piece being built at extraordinary speeds all over the place. Barrack left, I would too if it was in the cards for me.

[PeteD]

Been paying unsecured property taxes on my boats for the last 20+ years. At one point I called the County Assessor and asked him how he derived the tax amount on my boat without looking at it.
Answer: He just went on Nada guide and looked at the value and taxed it accordingly.
Response: I don't think my boat is actually worth that much.
Answer: Well he wanted me to go get 3 appraisals , then he would think about changing the Price.
Wanted me to do the leg work.
I guess you cant argue with City hall...
and just to let you know if you are delinquent or do not pay the tax , A lien can be put on your property.
Last time I read the departments the money goes to , it was Cal Trans , parks and recreation, and maybe CHP was in there too. I would assume some goes to the General Fund also.

[Popper]

There are numerous articles available online regarding the mass exodus of businesses and people leaving California. . >High taxes, cost of living, property values, rent, highest fuel/energy cost.

Businesses have been leaving the State of California for years, and this pace is accelerating as the burdens of obscene regulations and taxes forces these companies to exit.
Ford, GM, Toyota, Oracle, Tesla, BAE Systems, HP, General Motors, Bethel, Peterbilt, etc........all left the so call sunshine State.

California is not a State to live if you're starting out.

Property taxes on boats is as disclosed above at 1 percent of value.

[Bruce Theriot]

This so called luxury tax is just another way for the Counties to receive revenue from the citizens! I have asked the Tax Collector many times why does the luxury tax include my boat, motor and trailer? I have explained to them that the tax should be on the boat alone, not the motor or trailer, as these two items are not a luxury but accessories, as are the graphs, trolling motor, etc. and one does not have to purchase them to own a boat. They have no answer other than to say that's what the boat sold for. If I ever replace my boat, I will make sure to get three bills of sale, boat, motor and trailer. Rant over.

[Hughsonbassin]

When you register your boat you state the value of the boat/motor and trailer separately.

[AnglersPursuit]

When you register your boat you state the value of the boat/motor and trailer separately.

If you buy new make sure your dealer cares enough to do this right. Mine sent in total cost as one and the appraiser used it against me. Asking them to resubmit the breakdown was too much an ask after the fact as well.

[WRB]

Factor in your current cost of living then multiple by 30% to live a California.
Everything that can be taxed higher is and added “fees” for use etc. Fishing license is close to $60,annually, launching fee’s at all lakes, gasoline is currently $4.5 going up weekly.
Native Californian and love our climate and State, the people running suck.
Tom

[monte300]

Factor in your current cost of living then multiple by 30% to live a California.
Everything that can be taxed higher is and added “fees” for use etc. Fishing license is close to $60,annually, launching fee’s at all lakes, gasoline is currently $4.5 going up weekly.
Native Californian and love our climate and State, the people running suck.
Tom

Part of the problem is the 13% state income tax and what we get in return are crappy roads with deep chuckholes and freeways with knee high weeds along the sides. This is just one of the “features” of this once great state

[SpookFreak]

Annual personal property tax on your boat and motor are tax deductible

You sure about that. My CPA says no.
Its a luxury tax.

[monte300]

Annual personal property tax on your boat and motor are tax deductible

You sure about that. My CPA says no.
Its a luxury tax.

Does it really matter what it's called? It's a 1% tax on the value of your boat and motor that I have always deducted. My bad?