Texas Boat Registration

[overdueweekender]

Any Builder/Skippers in Texas............. I know most of the steps in regard to Title/Registration. I am wondering about the Inspection phase of Title/regisration. I have mis-placed (lost) all of my building material reciepts. Has anyone else been through this in Texas?

[Charlie Jones]

Uhoh. You're gonna need those reciepts when it comes time to register the boat. They will send a ranger out to look at the boat, but they are going to try to charge you tax unless you can show the receipts. Can get complicated without them. I'd try REALLY hard to find them.

They will issue you a Tx HIN that is supposed to be affixed to the boat on the starboard side of the transom., by cutting into the surface. When I engrave HINs in the boats I build I use a dremel with an engraving bit, write the number out on a strip of masking tape and follow those lines with the bit.

Again- TRY to find those receipts. Or fudge up some from where you bought the wood cause it's LOTS easier that way.

[Frank Hagan]

In California, they will assess sales tax on the estimated value of the boat if you don't have receipts showing that you paid sales tax on the materials. I showed them my receipts, but they only looked at the first page, then decided it was probably all there (it was, every penny!) Then I paid a small registration fee ($24 or something like that).

Charlie, is that how Texas does it?

We have a FAQ on Texas registration at http://www.messing-about.com/weekender/register_faq.html#texas

[Charlie Jones]

Frank- I've never built one for myself that I needed to register so I can't say for sure. I've always just given the customer a MSO and a receipt for the boat. Of course I keep all the reciepts for my own shop expense and tax purposes.

However I know a man who built his own boat and is unable to register the thing because he can't PROVE he built it, since he has no reciepts.

I think it depends largely on HOW you approach the TPWD ofice and the mood they are in that day, to be perfectly honest. If it were me, I'd call the office I was going to use and ask them ahead of time just what I should do, rather than walk in cold. Or call Austin and get the info directly.

Sure lots simpler with those receipts though.

[Phil Gowans]

In Utah, I had to document the value of the supplies, BUT that wasn't enough. They verified that I paid sales tax on the receipts, but for the property tax they also wanted to charge me for my labor. After all this is a property tax and they want to tax me on the value of my property. This is all very strange, since they don't consider resale value. I'm sure that I spent more on materials that I can get out of the sale of a "home built boat". I told them that I didn't keep track of my hours, and they could not do a proper assessment, so they added $1000 to the total value. Boy, they don't consider my labor worth much. I figure that's less than a $1 per hour, but it wasn't in my best interest to complain.

I'm still a little burned up on this. You try to save a little money by doing the work yourself and they want to charge you for your free labor. :x And what really makes this hard to take ... I have to pay propery tax on that value every year.

[overdueweekender]

Thanks for the input,,, I think that it would be prudent to contact TPWD prior to applying for Title/HIN

[Bob Taylor]

When I registered mine in Galveston County, they wanted receipts and any pictures I had of the construction. You wouldn't need to have a ton of paperwork because they just want to make sure you're not trying to register a stolen boat. Once they see that it's home made, it's no big deal.

[Frank Hagan]

Good point, Bob. In my case, in California, they also wanted pictures. I was a bit chagrined when the DMV lady didn't say it was a nice boat. She said something like "OK, I see what we're dealing with here." :roll:

In California, the DMV doesn't assess the property tax value of the boat; that is done by the individual county, not the state. But the DMV is concerned about the state sales taxes they should get on the materials or the value of the boat if the materials were purchased as tax exempt ("for resale").

Phil, since the state is interested in what your labor hours were, I think you should bill them for the amount of time you spend filling out state income tax forms, etc.

[Phil Gowans]

Frank, Yah, It's that time of the year and I sure spend a lot of time working on my taxes. Sometimes I think that government feels it is not there to serve the people, but that we exist to serve it.

Then I start to feel like Will Rogers: Be thankful that we're not getting all the government we pay for.

[Andrew]

Just to make all you guys green with envy

In The ACT (Australian Capital Territory) any sail boat under 5m doesn't have to be registered

I don't even HAVE to get a boat drivers license (I will anyway it only costs $25AU and it proves I know the 'rules of the road').

No doubt some underworked public servant will notice this 'huge' amount of revenue they are missing out on and will put some form of tax in place, I just hope I'm finished before then

Andrew