{Stus-List} Buying a boat out of state and bringing to Maryland

Morgenstern, Keith E CIV SEA 08 NR keith.morgenstern at navy.mil
Mon Jun 15 09:13:00 EDT 2009

My experience is that MD will come after you one way or another.

A friend bought a boat in New Orleans, lived aboard there for a year,
then moved to MD.  He was military, but the "exempt from paying" law was
So the tax man came looking for their 5%.  My recollection is that MD
didn't care that you paid to some other state.

MD gets you both ways:  
--If you buy it in MD, it's 5% "sales tax"
--If you bring it from somewhere else, it's 5% "usage tax"  regardless
if it is a CG Documented vessel or not.

If I were you, I would try to stiff the State of Ill.  


-----Original Message-----
From: Brad Kuether [mailto:bkuether at comcast.net] 
Sent: Sunday, June 14, 2009 7:56 AM
To: cnc-list at cnc-list.com
Subject: {Stus-List} Buying a boat out of state and bringing to Maryland

Hello Everyone,
Anyone have any personal experiences in the US (Not Canada)  with
purchasing an out of state boat from a broker and bringing it another
state, specifically Maryland?
The broker in Illinois indicates he may need to charge me sales tax if
the title is transferred there.  The sales tax rate is 6.5%.  In
Maryland the excise tax is 5%.  I would be fine paying the 6.5% as long
as Maryland viewed the sales tax as a "Reciprocal Credit for Tax Paid to
Another State", on their NRB-240 form.
It looks like most "reasonable" states will give a credit, all they are
concerned about is the tax "dodge" which is not the case here.  I want
to pay my fair share.
Any insight would be great with anyone who had similar experience....
Thanks so much,
-Brad, Mary, Monica, and Jarod
C&C 29 Mark II
Middle River, MD

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