Are there any real remaining advantages to having a USCG documented vessel?

[Bob Neches (Solar Wind, N26C #143)]

I'm starting a new thread on a question David Young asked in another thread on scams, because  his question raises issues that may be of interest to different folks.   (And of little interest to Canadians.)

I've had both Federally documented and state documented boats.  I can share what advice I've received, but I hope others with different and more recent experiences will chip in.

The legal advice I got on the tradeoffs basically boiled down to there  being two reasons for documenting, each serving very different interests:

• Banks prefer, and for expensive boats may even require, that the boat be Federally documented because US law gives them lien rights ahead of other creditors if the owner defaults.  State-registered boats in the US give other lien holders precedence.
• An owner may prefer to document, over state registration, as part of a tax avoidance plan if they are purchasing a boat in one state but intend to move it to another.  For example (at least at the time I received this advice), a documented vessel purchased in Florida but removed from there in less than six months, but which also took more than six months after purchase to get to its intended home in California, was exempt from sales tax in both states.  Without Federal documentation, it would have had to be registered somewhere in the interim.  (Note that documentation alone is not sufficient to avoid taxes while complying with the law -- it is merely part of a complex set of steps that must be followed.)
  

Very expensive lawyers told me that, in every other case, it was easier to register it in the state you're keeping it in.

-- Bob

   Solar Wind

   Nonsuch 26C #143

[Mariner's Cat V 26C Brentwood Bay BC]

In Canada the Federal registration is a title that can be traced back and show continuity, provincial registration in some jurisdictions can not be validated so for loan and other purposes not as robust. 

As well the Queen can commandeer your Federally registered vessel in time of need!

T

[Bob Gehrman]

Bob -

Another advantage of registering with USCG (and the only reason for me) is that we do not have to put the nasty looking state registration numbers & letters on our beautiful bows. All I have to do is have a small square sticker on my mast for the state registration, which is still required.

Bob Gehrman

NS30U #396 "Quickbeam"

Baltimore, Maryland

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[Ernie Abugov N22 - #56 "Moustaches" Toronto]

Conversely, I have also heard that a Canadian federally registered vessel can request assistance, at any time, from the British navy. Like, let's say, there you are in Toronto's inner harbour and, just like that, you run into a situation in which you require assistance and ..............

Apparently, that is a fact.

Ernie A. in Toronto (Canada .... not the UK)

[Mariner's Cat V 26C Brentwood Bay BC]

Bob same in Canada and the numbers are ugly......

[Mariner's Cat V 26C Brentwood Bay BC]

Yes I have declared a rum and lime shortage  several times and they have come to my assistance :)

[Herb Huber]

It used to be that in Canada a Federally registered boat could be purchased without tax, I suppose that was because you were giving the Queen the right to commandeer your boat in time of war :-) While that tax free status at time of sale was the biggest motivation to have your boat Federally registered across all provinces in Canada, I don't know what the tax laws are now.

Herb G. Huber, MISTOFFELEES 30C#91, Sarnia/Point Edward, Ontario