The price is not the cost
California buyers routinely underestimate closing by five figures. Before you write an offer, model these:
- Use tax — assessed on the purchase price at the rate for the county of principal berthing.
- Documentation vs. state registration — USCG documentation is generally required for financing above five net tons.
- Offshore delivery — legitimate, but strict: delivery outside the three-mile limit plus twelve months of qualifying use records. Get it wrong and the tax comes due with penalties.
- LLC ownership — useful for liability and charter use, but you pay formation, franchise tax and a registered agent every year.
- County unsecured property tax — roughly 1.1% of value, every year, forever.
The first-year carry
Slip, insurance, bottom job, haul-out, and the deferred maintenance the seller left for you. Budget 8–12% of the purchase price for year one on a used boat.
None of this is tax or legal advice. Run the numbers below, then confirm the structure with your CPA before closing.