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1. Why do I have to pay taxes on my vessel?

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

2. I paid the sales tax when I purchased the vessel and paid registration fees to the Department of Motor Vehicles. Why am I paying taxes again?

Sales and/or use tax and property tax are two different types of taxes.

• Sales tax is paid at the time of purchase.
• Personal property taxes are paid annually. Payments made to the Department of Motor Vehicles do not include property tax.

3. Why is my vessel being assessed in Placer County when I take it to many locations?

The situs of a vessel can be determined in a variety of manners. We look at the following to determine the situs of a vessel:

1. Where is the vessel registered?
2. Where is the boat primarily located? – (i.e. In your garage, at a facility).
    a. If located at a facility within Placer County, situs is established at that facilities principal location.
        i. If the facility you contract with is full and your vessel is sent out of State or County temporarily for the winter season to a secondary location, situs has not changed.  
3. Where is your primary residence (domicile)?
    a. If applicable, where is your secondary residence (domicile)?
4. Where is the vessel primarily used?
5. Has situs been established elsewhere?

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

The situs of a vessel can be determined in a variety of manners. We look at the following to determine the situs of a vessel:

1. Where is the vessel registered?
2. Where is the boat primarily located? – (i.e. In your garage, at a facility).
   a. If located at a facility within Placer County, situs is established at that facilities principal location.
        i. If the facility you contract with is full and your vessel is sent out of State or County temporarily for the winter season to a secondary location, situs has not changed.
3. Where is your primary residence (domicile)?
   a. If applicable, where is your secondary residence (domicile)?
4. Where is the vessel primarily used?
5. Has situs been established elsewhere?

5. Why do I have a 10% penalty note on my tax bill for my vessel?

Either the Assessor’s request to file a valid statement was not received by May 7th, or no statement was received. California Revenue and Taxation Code section 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.

6. 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.

7. 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.