BajaNomad

Buying a boat in Baja

ncampion - 6-21-2008 at 09:42 AM

Has anyone ever bought a US registered boat in Baja without making the transfer in the states? A friend is bringing his boat down here where I am going to buy it from him and keep it in Baja. I was wondering if I avoid the tax required if I transfer title in Calif. Not sure what kind of acutal title I could get without the registration? Any thoughts?:?::?:

rhintransit - 6-21-2008 at 09:52 AM

good question that I think others with more experience will answer, but if you keep a boat in Baja you have to do a 'temporary' 10 year import and I really doubt you can do that without the registration and title in your name.

Pescador - 6-21-2008 at 09:53 AM

If the boat is registered in California and you are a California resident you do not need to do an inspection of the title or boat for registration purposes. The challenge happens when you live in another state and they have to do Vehicle Identification Number affadavits. If he has done an importation on the boat, that is good for a 10 year period, but you will not be able to renew it in his name. I have an imported boat but bring down new registration each year. If you either live in California or have a California address this becomes pretty easy. Othrwise, you almost have to haul the boat out to do a registration change.
It would have been easier if the boat was registered as a Mexican boat with a matriculation number, but that is a potentially difficult process. It has to be imported into Mexico with the appropriate taxes paid and then it gets a Mexican registration number which he transfers to you. In Mexico some time these things are done by throwing money at them.:no:

bajaguy - 6-21-2008 at 10:01 AM

Ensure the seller has correct registration on the boat AND trailer, and also has clear titles for both, hopefully in the sellers name. Also get a bill of sale for both the boat and trailer. It will be much easier if you transfer both boat and trailer registrations/titles to your name before you do anything else.....getting the correct paperwork and paying the tax is a small price to pay now to avoid larger problems later.

[Edited on 6-21-2008 by bajaguy]

fulano - 6-21-2008 at 10:55 AM

Quote:
Originally posted by ncampion
Has anyone ever bought a US registered boat in Baja without making the transfer in the states? A friend is bringing his boat down here where I am going to buy it from him and keep it in Baja. I was wondering if I avoid the tax required if I transfer title in Calif. Not sure what kind of acutal title I could get without the registration? Any thoughts?:?::?:


I'm assuming you are talking about the California Use Tax, which you are charged when you register a vehicle you purchased in California. If you purchase the boat outside of California and use it outside of California for at least 90-days before returning the boat to California, you do not owe a Use Tax. Be sure to tell the people when you register it and show them the date of purchase on your sales agreement and some kind of proof that the transaction was outside of California and the boat remained outside of California for 90-days.

...fulano, retired CPA

Mexrick - 6-21-2008 at 04:50 PM

If it is a California registered boat, you cannot keep it in Baja full time. California will not transfer the registration to you if you tell them that you are going to keep the boat in Baja. You will need to give them a California address where you are going to keep the boat. They will not check to see if you have your fingers crossed when you give them this information.:spingrin:

Bob and Susan - 6-22-2008 at 09:52 AM

remember...in california you PAY property tax on a boat
plus the registration

get the trailer to have a perm plate even if it doesn't already but...
you still have to pay a fee every couple of years to register the trailer

if you leave a boat over 15 feet long here in baja
you need a temp import sticker
it's good for 10 years
$50usa

also...if you buy a boat or car from a relative you DO NOT pay sales tax when you register and...
there is NO "relative police" to check if its a relative or NOT!!!
you do need to sign a form that you bought it from a relative

oh yea...remember to have the seller sign a power of attorney for the registration of the boat and trailer
the form is on the internet
this way if you have a problem you can sign all the docs required by the DMV:light::light:

[Edited on 6-22-2008 by Bob and Susan]

Boat Buying

prt328 - 6-23-2008 at 06:25 PM

I did what you are doing in November. Get the title & registration to the boat & trailer from the seller and a bill of sale showing the boat was purchased in Cabo. Get a few receipts showing fuel, storage, etc. to back up your claim the boat is in Cabo. Take the paperwork to your local Board of Equalization office and tell them that want an exemption certificate for DMV registration as you purchased the boat in Mexico and plan on leaving it there for a while but want title transfer. They will argue with you but hold your ground and get the "Blue Letter(?)". Take that to DMV along with the old title/reg and ask that they issue you a new title and registration. If it has 2009 tags your okay, if not you have to pay to "catch up". It's not much. They will not charge you sales tax with the BOE letter.

The BOA will send you a letter in about 90 days following up on the exemption. You need to return the letter with proof that you USED the boat in Mexico (moorage, fuel, lodging, etc.) Once they accept that they will send you a letter clearing you from any tax obligation.

Take the CA registration, bill of sale and all boat info (including serial numbers of boat, engines, trailer) and installed accessories (radar, etc.) to the local Banjercito and get your temp import cert for about $50.

This sounds like a royal pain (and it is) but do yourself a favor and do it right. Without the BOE letter excusing you, they can come after you for 7 years, with penalties, if the boat ever enters CA. Besides, with a clear U.S. title it will make it easire to sell to another gringo later.

Good luck!