RHODE ISLAND LEVIES NO SALES TAX, NO PROPERTY TAX & NO USE TAX ON BOATS.
The term “tax haven” and “Rhode Island” are rarely uttered in the same breath. When it comes to boat ownership, however, RI is one of the boat-tax-friendliest states in the country with no sales tax, no use tax and no property tax. Add to that the awesome scenery of Narragansett Bay, and you’ve got a boater’s paradise perfect for a coastal summer home.
You can register your boat in Rhode Island even if you are not a RI resident. In fact, RI’s Department of Environmental Management advises if your boat is in RI for more than 90 days a year, it should be registered here.
To learn more read these FAQs for registering your boat in RI.
RI HAS NO TAX ON BOATING SERVICES.
That’s right. Zip, Zero, Nada!
Not only does RI forego boat sales taxes and boat property taxes, it also levies NO taxes on boating services which means dockage, retrofits, repairs and mooring fees are not taxed in Rhode Island. As a result, RI has developed world-class yachting facilities, boat building services, and technical talent. We’re a sea-faring people, and we know our boats.
The no-tax standard applies to new or used, big or small, power or sailboats. If you purchased your boat after July 23, 1993, you’re good to go. In addition, all those other marine-related things you will buy along with your vessel? They are part of the sale and free from RI sales tax.
Unlike federal taxes which do not apply to boats (at least at this writing), state and local boat taxes are in play in most states along the eastern seaboard. Where applicable, sales taxes are due upon purchase and personal property taxes are due annually on property kept in state. If you’re buying a large boat, the tax liability can really add up.
Among the New England states, Rhode Island has the most favorable tax structure. Here is a summary of neighboring states’ boat taxes (NOTE: rates are subject to change, please confirm current tax structures if you are considering a boat purchase.)
Connecticut 6% sales tax.
Massachusetts 5% sales tax and annual property taxes.
New Hampshire – variable sales tax depending on size and propulsion
Maine – 5% sales tax and annual property taxes.
More info is available here:
SAVVY SAILORS ARE MOVING TO RI
Pondering a vacation home purchase? If you’re a boat owner looking for some of the best cruising waters on the east coast AND a favorable tax environment, you owe it to yourself to consider Rhode Island. Give us a call. We’d love to help.