Watercraft
Why are Boats/Vessels Taxed?
The California Constitution and the Revenue and Taxation Code state that all property is taxable (including boats and other vessels such as jet skis) unless it is specifically exempt by law. Boat owners pay a registration fee to the Department of Motor Vehicles, but the personal property taxes are paid to the county where the boat is habitually moored or located. If you own a boat in the County of Yuba on lien date (January 1 at 12:01 a.m.), you must pay the taxes on it.
Determining the Situs of Boat/Vessel
Section 14 of the California Constitution states, "All property taxed by the local government shall be assessed in the county, city, and district in which it is situated." Revenue and Taxation Code Section 1141 further provides that "boats shall be assessed where they are habitually moored when not in use". Domicile of the owner is the usual tax situs. However, proof that the boat is habitually stored or moored elsewhere when not in use overrides that presumption. Registration information on boats comes directly from the Department of Motor Vehicles. Boats should be registered at the situs at which they are moored, and this will determine the taxing jurisdiction. Proof of situs other than DMV registration of domicile could include receipts of docking fees (on January 1 and current), proof of registration in another county or state, and/or a copy of an un-canceled current tax bill from another county for said boat.
Notification of Assessment
Boat taxes are assessed on the unsecured tax roll. Your notice of assessment will be your unsecured tax bill. The tax bills are mailed mid-July and payment is due by August 31 of that year.
Valuation
Upon discovery of your boat/vessel, the Assessor will mail you a Vessel Owner's Report. The purpose of this report is to provide the Assessor with information regarding the vessel which will aid in the determination of fair market value. Failure to file a Vessel Owner's Report will result in assessment by estimate pursuant to California Revenue and Taxation Code section 501. Confidentiality - "All information requested by the assessor or furnished in the Vessel Owner's Report shall be held confidential by the assessor. The report is not a public document and is not open to public inspection, except as provided in Section 408". (Revenue and Taxation Code Section 451) A boat is taxed at the same tax rate applicable for the area in which it is moored. The boat's taxable value is based on the purchase date, purchase amount, and depreciation (if applicable). Marine market value guides are also used as a valuation source. If marine market value guides are used to support a lower valuation, they must be within 90 days of lien date (January 1). Boats or vessels with a value of $5,000 or less are not assessed. After enrollment, taxpayer requests for value review must be submitted in writing with substantiating documentation. Substantiating documentation could include pictures of the vessel, repair bills, or other documentation of damage. However, if after contacting this office your value concerns are not resolved, you must file an Assessment Appeal Application with the Clerk of the Board, 915 8th Street, Suite 109 Marysville, CA 95901 to protect your formal appeal rights. For information on how to obtain and complete an application call (530)749-7510 or visit the Clerk's website. The appeal application must be filed between July 2 and November 30.
Boats / Vessels - Frequently Asked Questions
Q: Do I have to pay the full tax if I sell my boat after the January 1 lien date?
A: Yes. Unsecured property taxes are not prorated by the Tax Collector's Office. Any activity occurring after the lien date only affects the following year.
Q: Should I notify the Assessor's office if I sell my boat?
A: Yes. This information will help prevent you from receiving a tax bill on property you no longer own during the next Roll year. However, you should fill out a Release of Liability form with the Department of Motor Vehicles (DMV).
Q: My boat is outside the (county/state/country).
A: California registration indicates the boat is kept in California. If it is in the county more than 6 months, it is taxable here.
Q: Why do I have to pay taxes on my boat to you and the DMV?
A: DMV collects a registration fee for the boat. The county Assessor determines boat values, upon which the personal property taxes are based.
Q: Why do I have to pay taxes on my jet ski?
A: In California all property is taxable unless specifically exempt by law. (R&T 201)
Aircraft
Why are Non-Commercial Aircraft Taxed?
Section 5301 of the California Revenue and Taxation Code requires the annual assessment of non-commercial aircraft to the owners as of January 1 of each year. Aircraft of historical significance may be eligible for exemption, if certain criteria are met. For more information, please call (530) 749-7820
Determining the Situs of the Aircraft
Non-commercial aircraft has situs for taxation purposes at the airport in which they are habitually situated when not in flight. (Property Tax Rule 205(b); Revenue and Taxation Code 5362) For an aircraft that has a primary situs in California, the assessment may be apportioned to eliminate the time the aircraft has established tax situs outside California. All the remaining time, whether or not in California, is allocated to the California airport where it spends the greatest amount of ground time. For an aircraft that has a primary situs outside of California, but has established some situs in this state, the California assessment is based on the time actually in this state, at the airport where it spends the greatest amount of ground time, and all other time is allocable elsewhere. The Assessor also relies on F.A.A. registration information in determining the taxable situs of the aircraft. Additionally, an Aircraft Update Request is sent annually in mid-October to existing owners which provides an opportunity to inform us if your aircraft has been moved to a new "principal location" or has been sold.
Notification of Assessment
Aircraft taxes are assessed on the unsecured tax roll. Your notice of assessment will be your unsecured tax bill. The tax bills are mailed mid-July and payment is due by August 31 of that year.
Valuation
Each year you will receive an Aircraft Property Statement, Form 577 (R&T Section 5365). The purpose of the Aircraft Property Statement is to provide the Assessor with information regarding the aircraft which will aid in the determination of fair market value for the current year. This form is a legal affidavit for which the information provided is declared to be true under penalty of perjury. Aircraft Property Statements are mailed to identified aircraft owners by early February and are required to be returned by April 1. The form should be completed in its entirety, with as much detail as possible regarding the current condition of the aircraft. Instructions and other general information are contained on the back of the form. Failure to file an Aircraft Property Statement will require the Assessor to estimate the market value of the aircraft and apply a penalty assessment (Revenue and Taxation Code Sections 501 and 5367). Confidentiality - "All information requested by the assessor or furnished in the property statement shall be held secret by the assessor. The statement is not a public document and is not open to public inspection, except as provided in Section 408". (Revenue and Taxation Code Section 451) The Assessor is required to use retail market data in determining assessable values for aircraft. Aircraft market value guides are the main source for determining the assessable values. Information (current engine and airframe hours, status of paint and upholstery, etc.) provided on the Aircraft Property Statement will allow the Assessor to make appropriate value adjustments (if necessary) based on the actual condition of the aircraft. Additional information may be requested by the Assessor. After enrollment, taxpayer requests for value review must be submitted in writing with substantiating documentation. Substantiating documentation could include pictures of the aircraft, repair bills, or other documentation of damage. However, if after contacting this office your value concerns are not resolved, you must file an Assessment Appeal Application with the Clerk of the Board, 915 8th Street, Suite 109 Marysville, CA 95901 to protect your formal appeal rights. For information on how to obtain and complete an application call (530) 749-7510 or visit Clerk's website. The appeal application must be filed between July 2 and November 30. If an aircraft was sold, destroyed, or permanently removed from Yuba County prior to January 1, details should be provided by the assessee (owner) shown on the statement. The sale, removal, or destruction of an aircraft after lien date (January 1) does not relieve the owner of tax liability for the coming fiscal year.
Non-Commercial (Private) Aircraft - Frequently Asked Questions
Q: How did you arrive at that value?
A: Values are based on aircraft market value guides and the filed Aircraft Property Statement.
Q: What if I sold the airplane?
A: Notify us in writing, and attach a copy of the bill of sale.
Q: What if I don't file the Aircraft Property Statement?
A: Failure to file an Aircraft Property Statement will require the Assessor to estimate the market value of the aircraft and apply a penalty assessment (Revenue and Taxation Code Sections 501 and 5367).
Q: When and where is an aircraft assessed for property taxes?
A: State law requires that aircraft be assessed on January 1 of every year, at the site where they are regularly or routinely located. Aircraft regularly located in Yuba County are assessed here, regardless of where they are registered.