TravelTalkOnline Forums Travel and Vacation Forums British Virgin Islands Scrub Island cats are gone!

Since late July more than 10 catamarans, from the Dream Yacht fleet I assume, have left the Scrub Island Marina. Does anybody know where they've gone?

They might be taking them further south for hurricane season

According to the DYC website, they have opened a new base in St. Thomas.

They are in St Thomas from my understanding. There is a new base there. Compass Point, Benner Bay.

Additionally, I have seen some boats starting to move to hurricane hole.

Moving the boats to St Thomas is interesting. I think many companies have pondered it. It does however have some large tax implications.

Actually if the boat is US Documented you only have to register with the VI government for a couple hundred dollars.
If the boat is foreign then you have to go to US Customs and pay 1.5% of the purchase price of the boat for entry and then register with the VI government.

If the boat is going to be based in the USVI the 1.5% is due regardless of documentation status. My boat is documented however since I never paid the 1.5% I would owe it if the boat is brought permanently into US waters.
G

If your boat is US Documented that means the 1.5% isn’t necessary and you only have to register with the USVI

That’s not what I was told when I looked at bringing my current boat to the US. I will check again because it would save almost 5000. If that is the case however why would anyone ever pay the tax? It’s quick, easy and cheap to document a boat.
Quick google search:
As the majority of the yachts we sell are built outside of the US an import duty of 1.5% of the yacht’s value, based on the sales price, will be due when it reaches US waters. US waters include the territory of Puerto Rico, but not the USVI.

A boat can be registered or US Coast Guard documented yet never have been to US waters. Therefore import duty would still be due.

Sales tax is due to your local state, and is based on the value of the sale.

We recommend the use of an import agent to streamline the process with US customs for the import duty payment. Contact an agent for referrals.

I think we have crossed wires over the fact the duty is not required to be paid if the yacht will only be in the USVI.

You’re paying the the 1.5% duty if your boat wasn’t made in the USA, a boat built in the USA doesn’t pay the 1.5 because it isn’t imported. The taxes on the boat has to do with the individual state.
PR has an 11.5% tax plus a yearly registration the USVI doesn’t have a tax just a yearly registration fee.

Makes me wonder if other charter companies have this ability - I know BVIYC has some US based boats for a minute....

I'm no expert on this topic, but with both our boats we didn't have to pay an import tax nor state sales tax. Our boats were built in South Africa and delivered to, and ported in, BVI for charter. They were/are both flagged/registered US. Our state tried to collect sales tax on the purchases, but all we had to do to avoid this was document that they were not located in the state. I do not know the tax implications if we were to base them in the USVI, but it sounds like they would then be subject to the 1.5% import tax.

South Africa had favorited nation status so duties were waived. I paid no duty to bring a Voyage cat to the US. I understand that is no longer the case and duty would be due on our Leopard Cat. When you document a boat most states cross reference that data base and send you a tax bill. You then have to provide proof the boat has never been in the state to get the tax waived. NC went after me and it took a bit of paperwork to sort it out.

The 1.5% tax is for importing into the USA and has nothing to do with the individual state which implement their state tax.
USVI doesn’t have a tax only a registration fee

You do not pay the 1.5% tax in the USVI.

Captain Jay, I know the tax is not due in the USVI. I am getting conflicting reports on what happens if the boat is used in The Spanish Virgin Islands but based in the USVI. I called US customs yesterday because if my current trade in deal falls through I would move the boat to the USVI. They stated as a US documented vessel if I clear into the SVI I would be required to pay the duty unless it was innocent passage only. This is contrary to my earlier understanding that the duty would not be due as long as the home port was the USVI. Any thoughts?
G

Along the same lines, is the tax due if the USVI registered vessel is brought to Puerto Rico for haulout and 2-3 months of hurricane storage annually?