Placer County California

I paid the taxes when I purchased the vessel and pay the Department of Motor Vehicles. Why am I paying taxes again?

What will happen if I do not return the Vessel Statement?

Why do I have a penalty on my tax bill for my boat?

My vessel is stored or located in the state of Nevada on the lien date of January 1. Why do I have to pay California taxes?

What if I do not agree with the value?

Where will my vessel be assessed since I take it to many locations?

What should I do when I sell my boat?

I sold or disposed of my boat after January 1st. Why do I have a tax bill?

I sold or disposed of my boat before January 1st. Why do I have a tax bill?

Can my taxes be prorated?

I filed bankruptcy. Why do I have to pay the tax?

Why do I have to pay taxes on my boat?

California Constitution Article XIII and Revenue and Taxation Code Section 201 states that all property is taxable unless it is stated that it is exempt. Personal property is not exempt.

I paid the taxes when I purchased the vessel and pay the Department of Motor Vehicles. Why am I paying taxes again?

Sales and/or use tax and property taxes are different types of taxes. Sales tax is paid at the time of purchase, and personal property taxes are paid annually. Payments to the Department of Motor Vehicles do not include property tax but a use tax or registration fee.

How is the value determined?

Value is determined by reviewing the Vessel Statement returned, purchase price of similar vessels, and value guides. Once a value has been established, that value is subject to a depreciation factor each year for three consecutive years. Upon the fourth year, the value is again reviewed and compared to current market data available.

Why do I have a Vessel Statement?

This is a requirement of section 441(d) of the Revenue and Taxation Code. Statements are sent in order to gather the most up to date information on the property so that an accurate value can be determined.

What will happen if I do not return the Vessel Statement?

It is important that the statement be returned even if you no longer own the vessel. If a statement is not returned, an estimated assessment will be made using the best information available, and a 10% penalty on the assessed value will be added for failure to file per Revenue & Taxation Code 463.

Why do I have a penalty on my tax bill for my boat?

Either the Assessor’s request to file a valid statement was not received by May 7th, or no statement was received. Revenue & Taxation Code 463 mandates that a late filing penalty of 10% of the assessed value be added for valid statements not timely filed by May 7th. The Assessment Appeals Board is the only authority with the ability to abate a penalty for late filing. (http://www.placer.ca.gov/bos/Clerk/PTaxAppl.aspx)

My vessel is stored or located in the state of Nevada on the lien date of January 1. Why do I have to pay California taxes?

Vessels registered in the State of California (bow numbers beginning with CF) must be principally located within the state to maintain such registration. The jurisdiction for property tax assessment resides with the State of Registration. If the principal location for your vessel is in the State of Nevada, you must register it with Nevada to be subject to Nevada taxation. To relieve you of your property tax assessment in California, you must provide us with proof of Nevada State registration, effective prior to the January 1 lien date.

What if I do not agree with the value?

You may call, email, or write to the Assessor’s Office to discuss the value and request an informal review. You can also file an Application for Changed Assessment by calling (530) 889-4020. (http://www.placer.ca.gov/bos/Clerk/PTaxAppl.aspx)

Should your value notice be the result of an Escape Assessment, you have 60 days from the date of the Notice of Enrollment of Escape Assessment to file an application.

Where will my vessel be assessed since I take it to many locations?

The vessel should be assessed where habitually moored or situated. The location where a vessel is habitually moored or situated is the location at which the vessel is usually present when not in use. Department of Motor Vehicles information will indicate that principal location. Vessels registered in the State of California (bow numbers beginning with CF) must be principally located within the state to maintain such registration. The jurisdiction for property tax assessment resides with the state in which the vessel is registered.

What should I do when I sell my boat?

File a release of liability with the Department of Motor Vehicles, and notify the Assessor’s Office in writing with information regarding the sale or by filing a Vessel Affidavit. (http://www.placer.ca.gov/Departments/Assessor/Forms/BusinessForms/PCA529Boat-AircraftAffidavit.aspx)

I sold or disposed of my boat after January 1st. Why do I have a tax bill?

Under California Law, the owner of a vessel on 12:01 a.m., January 1 lien date, is responsible for taxes and must be assessed at full value. Sale or disposal of property after the lien date does not relieve the assessee of the obligation to pay taxes.

I sold or disposed of my boat before January 1st. Why do I have a tax bill?

Please complete and return a Vessel Affidavit to the Placer County Assessor’s Office. Based upon that affidavit, an informal review of your assessment will be completed. You may click the attached link to access the form. (http://www.placer.ca.gov/Departments/Assessor/Forms/BusinessForms/PCA529Boat-AircraftAffidavit.aspx)

Can my taxes be prorated?

No. Unsecured bills are never prorated regardless of the disposal date. Any proration of taxes should be done between the buyer and seller at the time of sale.

I filed bankruptcy. Why do I have to pay the tax?

Bankruptcy does not relieve the Assessor of determining a fair market value. Assessed value and payment of taxes are separate issues. You should contact the Placer County Tax Collector at (530) 889-4120 for issues regarding whether payment is required after bankruptcy. (http://www.placer.ca.gov/Departments/Tax.aspx)


Home > Departments > Assessor > Frequently Asked Questions > Vessel FAQs	Monday, May 21, 2012