US citizen keeping boat in BC

[DDW]

All you need to do is take the boat out of Canada. So go to WA or AK for a bit, then return to Canada. I have heard that simply checking into the US at one of the San Juan arrival points is sufficient, and you can immediately return to Canada.

This is true, and I did it for a couple of years in the Great Lakes. The import date to Canada that starts the 12 month calendar is the entry date for you and the boat as documented by your customs clearance. In any case since you don't check out of Canada, they have no way of knowing when you did, other that the US customs check in date (which they may well have access too - don't know).

Checking in to Canada is usually very easy, a phone call from a listed port of entry (and there are many). Only once in scores of entries was I asked to wait, they came and gave the boat a thorough search (this was in the year following the Covid closures) then said have a nice trip. Usually you receive the clearance number on the phone.

Until the DOCUMENTED boat is “in the water for greater than 60 days”, or “WA becomes the principal place of use”, the documented vessel can remain registered in another (cheaper) state and not be registered in WA. Colorado charged about $100 a year to register. I called the WA officials and they had me on a prolonged hold while they researched this. Finally, they came back to say that as long as the boat was not in the water for more than 60 days a year, the arrangement was legitimate.

This is what the statue says, in plain language. 60 days "in the Waters of the State of Washington". It is cumulative, that is the 60 days need not be contiguous. This is a main reason for all the dry storage yards in Anacortes. So an alternative to leaving the boat in Canada (for a commuter cruiser) is to leave it in dry storage in Anacortes, and make sure that from the time it is dropped in the water until you leave WA, and the time in the water in WA until hauled again, is less than 60 days in 365. You do not owe WA taxes in this case.

Leaving it in Canada, you can also opt for dry storage, cheaper than wet and fewer worries. VanIsle Marina has a really great facility for this - it is what I did for 8 years leaving a boat in Canada and would do again. But you still have a 12 month rule. I was caught by that during Covid, I was not allowed to visit the boat for over 18 months. I did not get a tax bill, but worried about it.

 

[sunchaser]

Don't forget about the folks who could not get to their boats for 3 years due to COVID.

One year

 

[Mark Laurnen]

My recollection is that, in addition to the cumulative 60 days in the water annually, the statute also says “or WA becomes the principal place of use”, or something to that effect. I was concerned by that, and did seek clarification from the WA Dept of Revenue (?). They seemed somewhat confused, and had me on a long hold while they researched it themselves. They came back without mention of primary location, saying the boat need not be registered in WA if it was not in the water for more than 60 days a year.

 

[Snapdragon III]

I bought a boat from a Canadian a few years ago, (The boat was in Fiji) and brought it back to Washington. The tax bill was painful, but I live here and want the boat close to use it and work on it. There are a couple more things I would look into, or think about if I were you.
I would research keeping the boat in Alaska. I don't know how it works for non residents, but I don't think they have sales tax up there, and the moorage is much cheaper than it is in Washington, or Sidney BC. They also have dry storage options.
The other thing I would think about is trying to keep the boat in dry storage, especially if you are only going to use if for a couple big trips a year. I'm not sure what the availability is in Canada, but it's definitely an option in Anacortes, WA. Keeping it in dry storage would save a ton of money on moorage, and maintenance, and would be much less stressful if you couldn't get to the the boat for an extended period of time for some reason.

Also, If it's a fairly new boat, I would make sure the engines meet US import requirements before buying any boats in Canada. Even if you don't want to keep it in Washington, it would be easier to sell if it could be imported. It's probably a rare situation, but something to check.

 

[mrfixit48]

The tax is 12% in Can$. What you are told is not legal but you will get away with it for a while. You southern folk sure do like the loopholes, carry on.
Curious what US authorities will say when an American asks for the annual cruising permit with a Canadian licensed boat. I would hate to be looking over my shoulder wondering which country will make the arrest and seizure.

I like a bargain as well as the next guy but all this bobbing and weaving to avoid paying a legit tax bill will invariably lead to more bobbing and weaving to avoid possible arrest and seizure of your boat which, I'm sure, will lead to a significantly larger cash outlay than just paying the tax up front. Personally, I like to have both my eyes closed when I go to sleep at night.

 

[twistedtree]

I like a bargain as well as the next guy but all this bobbing and weaving to avoid paying a legit tax bill will invariably lead to more bobbing and weaving to avoid possible arrest and seizure of your boat which, I'm sure, will lead to a significantly larger cash outlay than just paying the tax up front. Personally, I like to have both my eyes closed when I go to sleep at night.

I don’t think anyone is suggestion you avoid a legit tax bill. All the strategies are ways to legitimately never incur a tax bill in the first place. If something is tax-exempt, why would you feel guilty about not paying tax on it?

Now if you are doing things that DO trigger taxes and are hiding that, well that’s a whole different story and I agree with you.