yacht sales license california

California Yacht Brokers Association

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About The Cyba

California was the first state to require brokers and sales personnel to be licensed and bonded

Become a Member Different memberships available 

CYBA MEMBERS See if your Broker is a CYBA Member...

Code of Ethics CYBA Members hold themselves to high standards...

Welcome to the California Yacht Brokers Association

Founded in 1975, the California Yacht Brokers Association in 2025 will be celebrating 50 years of setting higher standards in our industry. 

About the CYBA

California was the first state to require brokers and sales personnel to be licensed and bonded . Since 1975 the efforts of the CYBA goes beyond that which is required by law and offers further protection and services to the consumer. Read more…

The 2025 Boat Show is coming to you in…

Pacific sail & power boat show wraps up 2024 and looks forward to 2025..

Sunday May 19th concluded the final day of the CYBA Pacific Sail & Power Boat Show at Westpoint Harbor in Redwood City, California. In its second year of CYBA production, the show is gaining traction and in a much better position to be a main stay for the Northern California boating industry, California and the CYBA membership. This year, the show featured vessels of all types, including sail, power and electric. Several of the dealers took advantage of the show to debut certain models to the public for the very first time. Booth exhibits offered vendors from up and down the state that of course included many of the local vendors known to the Nor Cal boaters and enthusiasts alike. The 3 rd  Annual CYBA produced boat show is set for May 15 – 18, 2025. In what seems a long time from now, opening day will be upon us before we know it. The continued success of your association’s boat show will rest heavily on those already involved, but it must be said that any help, support and assistance from the CYBA membership will be the overall push to greater success. Should you wish to comment or provide any additional support to the 2025 show, you are more than welcome to do so by emailing or calling CYBA President and Boat Show Chairman, Mark P. White.  [email protected]  or 310-968-9376.

Visit the Pacific Sail & Power Boat Show website

Member Benefits

Members of the California Yacht Brokers Association enjoy many benefits and privileges that make conducting business in an ever complex and evolving business environment, easier, friendlier, and more productive than ever before. Read more…

Arbitrations

Buyers and sellers, hopefully, enter into CYBA purchase agreements in good faith , but later disputes may surface.  Our association was one of the first to draft a comprehensive set of listing and sale forms for our member’s use.  The sole remedy for dispute resolution in the forms is mandated arbitration.  Read more…

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License: Yacht and Ship Salesperson's License

Licensing agency, description, additional details.

• State exam required
• Experience required
• No criminal record requirements

Earning Certification

Earning cpyb certification.

CPYB Certification is the mark of excellence for yacht sales professionals throughout North America. CPYB brokers have met professional qualifications and have successfully passed a three-hour examination, testing their skills and knowledge as yacht sales professionals. If you are committed to professionalism and have what it takes, we invite you to apply.

Requirements:

All applicants must comply with the following eight requirements in order to be eligible to sit for the CPYB exam.

The applicant must, and where appropriate, the brokerage firm with whom the applicant is currently employed, meet or agree to comply with the following:

• The applicant must provide proof that they have worked for at least 2 years during the past 10 years as a full-time yacht broker and that they are currently employed as a full-time yacht broker and has been for the past 1 year.
• The applicant has not been convicted of a felony offense or equivalent within the previous seven years.
• The brokerage firm/broker of record maintains a dedicated escrow/trust account that is used for all client funds in trust.
• The brokerage firm/applicant currently holds all necessary licenses required by all applicable governmental entities.
• All client payments are made payable to the brokerage firm/broker of record and not to individual brokers.
• All client transactions are supported by fully executed, contractually sound written agreements, affording protection to both the buyer and seller.
• All business conducted by the applicant complies in full with the CPYB Code of Ethics.
• The applicant has not been found in violation of any other yacht broker association's Code of Ethics (of which they are a member) within the previous seven years.
• Three references are required for the application:  two must be CPYB-certified individuals who can attest to the quality of your work.  One will be the Principal of the brokerage firm you work under who can attest to your years of experience. 

Application Fee:  The non-refundable $325 fee includes the exam fee and up to two retakes.  On the application, you will have the option to order The Guide, which is a recommended resource for exam preparation.  

Application:, partner associations.

CPYB :: National Press Building 529 14th Street NW, Suite 1280 Washington, DC 20045 USA Phone: 410.940.6349 Email: [email protected]

©2024 CPYB Certified Professional Yacht Brokers All images and content ©2024 CPYB All rights reserved | Legal Disclaimer

How to Become a Yacht Broker: Requirements Explained

Fun fact: U.S. boat sales can reach heights of up to $41 billion bucks each year. And while most people want to join the frenzy by saving up to buy their own boat, other clever cats join in on the big business by selling the boats. Yachts in particular can sell for a very pretty penny. So hopping in on the craze by starting a career as a yacht broker might get you a sweet slice of that $41 billion dollar business.

But although it might seem pretty lucrative to become a yacht broker, you can't really just head to the dealership and take on the role. On the contrary, there are quite a few hoops you might have to jump through to start a career in the yacht sales business. Wondering how to become a yacht broker? Here's what the job requires.

Basic Knowledge of the Business

First of all - would you buy a car from a guy who's never driven one? Exactly. Before you even think about becoming a yacht broker, you have to make sure you know what to tell your buyers. First hand experience with yachts should give you the upper hand in the business so that you know exactly how to sell a boat's good points and how to take attention away from its flaws.

Yacht brokers need to know the need-to-knows of the business. If you don't have a boat of your own, then you can visit your local marina and talk with the boat owners there. Visit a dealership and ask about boat specifics. You can even do research at home. It pays to know everything there is to know about boats if you want to really get your buyers to seal the deal especially if you don't have a lot of sales experience yet.

CPYB Certification

For the record - certification isn't required if you're wondering how to become a yacht broker. In fact, not a single brokerage requires it since they're more interested in experience in sales and skills. But it is helpful for buyers who want to make sure they’re dealing with someone with a good sales record.

That's exactly what certification is for. Presently, only the Yacht Brokers Association of America ( YBAA ) offers a course for certifying brokers, providing the title Certified Professional Yacht Broker (CPYB.) Applicants must be able to provide several documents to start the certification process. These include:

• Proof of present employment as a yacht broker for at least 1 year
• Proof of employment as a yacht broker for at least three years in the past 10 year period
• Proof of ethical yacht sales and necessary documentation
• A dedicated escrow/trust account for all client funds in trust
• Where applicable, the individual holds all necessary licenses required by the local government
• No violations for the last seven years of any surety or Codes of Ethics of any brokerage organizations or groups that the applicant is a part of
• Pass the CPYB exam

Individuals who comply with these requirements (among several others) are eligible to obtain certification as a Certified Professional Yacht Broker from the Yacht Brokers Association of America.

Alternatively E-learning courses and seminars are also helpful for developing skills. The Association offers courses on warranties, insurance, marketing, co-brokerage, and all of the nitty gritty details of being a yacht broker.

These e-seminars can be helpful in providing insight so you can navigate the work of selling boats, offering important knowledge on specifics that you might not be able to find anywhere else.

Do You Need a License for a Yacht Brokers Career?

To be clear, there are very few states that actually require a yacht broker to have a license . As of writing, only the states of Florida , California, and Virginia require yacht brokers a license to practice their trade through the local government. Other states have no yacht sales regulations.

The requirements for acquiring a license change between states, but you might expect some of these requirements to pop up during the process:

• At least 18 years of age
• A fixed place of business
• Employed as a yacht broker as your primary occupation in another state for at least three years OR
• Own and operate a business selling new or used yachts in the state for at least three years immediately after applying for a license OR
• Employed as a licensed yacht broker for at least a year out of the last five years in the state
• Relevant certification from the YBAA and licenses

These are a must for licenses in California, but Florida and Virginia might require completely different documents and regulations. Licensing process fees can cost you between $200 and $300 to become a licensed broker, depending on the place you're in. It may be helpful to check locally to get a better idea.

Renewal of licensing may have to take place annually depending on local regulations, but it can be different for different states. In some cases, you might also have to complete and pass a written exam to ensure that you're knowledgeable on the specifics of the industry before you can become a licensed broker.

Education, Degree, and School Requirements for the Career

Is a degree a must to become a yacht broker? Yacht brokerages will usually prefer employing yacht brokers with at least a Bachelor's Degree, but it's not uncommon for high school graduates to get jobs as yacht brokers. Of course, a college education and a Bachelor's Degree in business, marketing, sales, or any other related course can be helpful, but you will find it's not always a must in most states.

Selling yachts and sealing deals aren't really skills they teach you at high school -- you get that from years of sales experience. If you've got the chops to make sales and you know the ins and outs of yachts, then it shouldn't be impossible to get a job as a yacht broker -- even without a college degree or an extensive background in school based education especially if you pass the brokerage's exam and requirements.

How Much Do Yacht Brokers Make?

What's a yacht broker salary like? Yacht brokers work on a commission just like any other broker or salesperson career, which means that they make more when they sell more. According to statistics, a successful yacht broker can make a salary of as much as $120,00 a year if they're dealing with higher end yacht models. But that's a very generous estimate of what real figures actually look like.

If we're being realistic, a yacht broker can make an average of about $70,000 a year. That places their weekly salary payout at around $1,300 to $1,400. Of course, peak seasons do exist where sales increase, earning them an extra $500 to $1,000 a week if they're lucky.

Another helpful piece of information is that the amount they get in terms of commissions isn't permanent. Most brokers will ask for 10% of the total sales, but there are net commissions and percentage commissions.

With a net commission agreement, the broker gets the exact amount agreed with the clients regardless of whether or not the yacht is sold for a lower or higher price after negotiations. On the other hand, percentage commissions will earn the broker a specific percentage of the successful sales, which is affected by negotiations made on the sale.

You'll also have to consider the situation if there's a broker working for the buying end as well. The listing broker and selling broker will often have to split the commission from the sales. So if the clients agree to pay a 10% commission on the sale, the brokers won't get 10% each, but will instead get 5% each for a total cut of 10%.

Tips on How to Become a Yacht Broker

• First of all - connections are key in this career. Expand your network by visiting boat shows, dealerships, and other places where you can meet new people in the industry.
• It's helpful to ask a pro. Find and train at a yacht brokerage under licensed or experienced yacht brokers with lots of sales experience to get a better idea of the intricacies of the sale and relevant skills and knowledge.
• You must learn to accept rejection. Yachts are expensive, and even the most interested buyers can back off of a deal when their budget won't allow it.
• Maintain previous contacts. Prospective buyers who didn't push through in the past might be more comfortable to purchase a boat later in the future. It may be helpful to keep in touch.
• Be likable. You and your competition are all selling the same boats. It's your personality that will make all of the difference.
• Go online. A lot of your prospective buyers exist on the internet. If you want to reach a wider audience, try your hand at online marketing.
• Be teachable. If you don't have a lot of experience or a degree in marketing or business, make up for the school deficit by attending seminars and learning courses to expand your knowledge and skills.

FAQs About How to Become a Yacht Broker

Is it hard to become a yacht broker.

All jobs come with their own unique set of challenges. Becoming a successful yacht broker requires persistence and lots of exposure to the actual job. You will find that there are intricacies you'll only learn once you're out on the field since they're not taught in school or in textbooks. Work with a more experienced broker to learn more about what it takes to secure those sales.

What about luxury yacht brokers?

Selling luxury superyachts and gigayachts can earn you massive income in a single transaction, but it's not quite as easy as selling small fry. You're going to need lots of sales experience since you're going to deal with a yacht brokerage and corporations instead of not private individuals.

They might also be more particular about making sure their brokers education, preferring those that have a Bachelor's Degree in business, marketing, and other appropriate courses and not just a high school diploma. It's always best to start out with smaller boats and then work your way up by joining a brokerage firm for luxury yachts for the super rich clientele.

Quitting Your Day Job?

If you're thinking about quitting your day job to pursue your passion for boats, then it pays to know how to become a yacht broker. You'll find that it will take some serious sacrifice and learning before you can call yourself a success in the industry. But with the right contacts, proper licenses and experience, and lots of practice and exposure, you might just be able to secure for yourself a high paying job that puts you in the company of some of the richest communities around.

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Fishing for Channel Islands Yacht Brokers? Get ready to head back to shore… you’ve just caught the largest boat broker in the Channel Islands area. Browse this page for a huge selection of Channel Island Yachts, and book a viewing with just one click!

Thanks for visiting Seacoast Yachts… the premier Channel Islands, Oxnard Yacht Broker, with over two decades of experience connecting buyers and sellers in the Channel Islands, Oxnard area. With our unmatched marketing power, we average about 3 boats sold per week by listing boats for sale all up and down the California Coast… especially in the incredible Channel Islands region.

Channel Islands Harbor in Oxnard is a gem on the California coast between Port Hueneme and Ventura. This working harbor features several beach-lined parks and coastline for picnics and surfing, as well as nearby biking and walking paths. While at the Harbor, visit the many shops, dine at one of several restaurants or learn to sail at the Channel Islands Boating Center. Be sure to check out the Ventura County Maritime Museum with its ever-changing exhibitions, world-class maritime art, and ship models. Many special events are held in the Harbor: 4th of July Fireworks by the Sea, Celebration of Whales Festival, the Annual Parade of Lights, and MarinaFest to name a few. Farmer & Fisherman’s Market is held on Sundays, 10am – 2pm, adjacent to Marine Emporium Landing. Wet Wednesday Food Truck event is held every 3rd Wednesday of the month during daylight savings, when gourmet food trucks converge with their culinary delights. The Harbor has dive centers, boat charters and yacht clubs. For fishing enthusiasts, there are sport fishing excursions throughout the year. See majestic whales off the coastline from December through April on one of our daily whale watching excursions. With nine full-service Marinas, the Harbor provides berths for 2,150 boats, and for visitors’ safety the Harbor Patrol is on duty year round, 24/7. Discover the unique ocean environment of five offshore islands through the Harbor’s variety of excursions to the Channel Islands National Park. The islands are home to more than 2,000 terrestrial plants and animals, ranging from plankton to blue whales. These beautiful islands are an extraordinary experience, and just a short boat trip from the Channel Islands Harbor.

Channel Islands Harbor in Oxnard is one of the nicest places in California to own a yacht, and that’s why we’re so proud to be the most successful Channel Island, Oxnard Yacht Broker. This working harbor features several beach-lined parks and a coastline for picnics and surfing, as well as nearby biking and walking paths. The Channel Islands, Oxnard Harbor has dive centers, boat charters and yacht clubs. For fishing enthusiasts, there are sport fishing excursions throughout the year. See majestic whales off the coastline from December through April on one of our daily whale watching excursions. When you’re ready to see this incredible boating experience in person, count on us to be the Oxnard Boat Broker that you need! To view a boat, or start listing yours, simply let us know when you’re ready to get started.

Seacoast Yachts is the only boat brokerage in California with a local crew at all of the major harbors, including Channel Island, Oxnard. When you use our brokerage services, you’ll benefit from an almost unmatched level of knowledge and expertise. Our reps include competitive sport fishermen, retired Marines, and captains with over five decades out on the water. We’ll work with you on an individual basis to buy or sell your Channel Islands yacht, helping you get on… or off… the water as quickly and easily as possible. Questions about our Channel Islands Yacht Broker services? Contact us any time, day or night, through the contact us page. We’re happy to answer any questions, even if you’re just getting started yachting.

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Boat & Vessel Owners

Whether you’re boating on lakes, rivers, or even the ocean, this guide will help you get your feet wet so you know everything you need to know before diving in and setting sail.

In This Guide

Boat/vessel registration.

Learn what kinds of vessels must be registered, get a hull identification number (HIN) or vehicle registration number (CF number), and more.

Boat/Vessel Registration Renewal

You must renew your boat/vessel registration by December 31 of every odd-numbered year, regardless of how often you use it.

Titles & Transfers

Buying or selling a boat/vessel? Find out what you need to do before, during, and after the sale or purchase.

Boat/Vessel Fees

Review fees related to operating a boat/vessel on California waterways and create an estimate.

Vessel Numbers and CF Numbers

An HIN must be displayed on all vessels registered in California

Forms for Boats/Vessels

From registration forms to vessel verification, find all the boat and vessel related forms DMV has.

Frequently Asked Questions

An undocumented vessel is registered by DMV and does not have a marine certificate issued by the United States (U.S.) Coast Guard.

A documented vessel is registered and issued a marine certificate by the U.S. Coast Guard. It does not require DMV registration. Please see the previous note.

You are required to register your undocumented vessel and pay applicable fees before it is placed in California waters.

Assembly Bill (AB) 2443 (Chapter 485, Statutes of 2012) authorized the California Department of Parks and Recreation, Division of Boating and Waterways to require DMV to collect a quagga and zebra mussel infestation prevention fee.

Since 2013, this fee has been due on all DMV-registered vessels boating in freshwater bodies. Vessels used exclusively in marine waters are exempt from this fee. The sticker must be purchased every two years to remain current; however, you can still purchase the sticker throughout the year.

Funds from the sale of the Mussel Fee Stickers are used to implement infestation prevention programs including planning, mussel monitoring, vessel inspection, and boater education.

Mussel Fee Stickers are purchased separately from vessel registration. A unique identifying Mussel Fee Sticker will be issued for the vessel as evidence of payment of this fee and must be displayed on the vessel next to the registration sticker.

Additional information regarding quagga and zebra mussels is available from the California Department of Parks and Recreation, Division of Boating and Waterways www.dbw.ca.gov/stopQZ or by calling 1-888-326-2822.

Regulations

Effective with the December 2013 registration, the California Department of Parks and Recreation, Division of Boating and Waterways adopted regulations to establish the procedures for the collection and use of the quagga and zebra mussel infestation prevention fee as required by California Harbors and Navigation Code Chapter 5, Division 3, Article 1.3 §675 through 676. These regulations specify how the fee will be collected and the criteria for administering the grants in accordance with the statutes.

To pay the Quagga and Zebra Mussel Infestation fee and obtain a Quagga sticker, please go to the  Mussel Fee Sticker Request  page.

• Before applying the decal, wipe down the hull surface and remove any residue or debris.
• Do not apply decals to a wet surface.
• Use the center slit to grab the upper corner of the decal.
• Very slowly peel away the decal, at a sharp angle, from the liner.
• If the backer liner starts to rip, stop and start to peel away from the other direction.
• You must remove all the liner backing material for the decal to adhere to the vessel correctly.
• Apply the decal to the vessel and smooth out any air bubbles.

If you boat in California fresh waters such as the Delta, rivers, lakes, reservoirs, and streams, you must purchase and display a Mussel Fee sticker next to your registration sticker. The Mussel Fee sticker matches the registration sticker by color and date.

You may purchase the Mussel Fee sticker online . The vessel registration/renewal and sticker transactions are separate. Once you receive your Mussel Fee stickers, place them on either side of the registration sticker as shown below.

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Abcs of california boating.

This guide is based upon the California Harbors and Navigation Code , Vehicle Code , Penal Code and California Code of Regulations .

Division of Boating and Waterways

Discover places to boat in California, learn boating safety and clean and green tips, and get the latest boating news and alerts from DBW.

California Boater Card

Apply for your California Boater Card, find boating safety courses, or check to see if you are exempt from the law.

General Disclaimer

When interacting with the Department of Motor Vehicles (DMV) Virtual Assistant, please do not include any personal information.

When your chat is over, you can save the transcript. Use caution when using a public computer or device.

The DMV chatbot and live chat services use third-party vendors to provide machine translation. Machine translation is provided for purposes of information and convenience only. The DMV is unable to guarantee the accuracy of any translation provided by the third-party vendors and is therefore not liable for any inaccurate information or changes in the formatting of the content resulting from the use of the translation service.

The content currently in English is the official and accurate source for the program information and services DMV provides. Any discrepancies or differences created in the translation are not binding and have no legal effect for compliance or enforcement purposes. If any questions arise related to the information contained in the translated content, please refer to the English version.

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The Department of Motor Vehicles (DMV) website uses Google™ Translate to provide automatic translation of its web pages. This translation application tool is provided for purposes of information and convenience only. Google™ Translate is a free third-party service, which is not controlled by the DMV. The DMV is unable to guarantee the accuracy of any translation provided by Google™ Translate and is therefore not liable for any inaccurate information or changes in the formatting of the pages resulting from the use of the translation application tool.

The web pages currently in English on the DMV website are the official and accurate source for the program information and services the DMV provides. Any discrepancies or differences created in the translation are not binding and have no legal effect for compliance or enforcement purposes. If any questions arise related to the information contained in the translated website, please refer to the English version.

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Do you have your California Boater Card?

As of January 1, 2018, the California Boater Card is required for motorized vessel operators. Boaters will need to complete an approved boating safety course and obtain their California Boater Card before heading out on the water.

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AGL Yacht Sales

Great Boats Create Great Memories

California Use Tax Exemptions Applicable to Yacht Purchases and Ownership

July 9, 2021 by Mike Wales

When registering a vessel with the California Department of Motor Vehicles (“DMV”), the DMV collects the use tax during the registration process.  Thus, if you have a qualifying exemption and intend to register your boat with the DMV you should obtain a use tax clearance certificate from the California Department of Tax and Fee Administration (“CDTFA”) prior to registering the vessel.

There are two types of certificates, the CDTFA-111, Certificate of Vehicle, Mobile home or Commercial Coach Use Tax Clearance and the CDTFA-111-B, Certificate of Vessel Use Tax Clearance. A use tax clearance certificate is a document issued by the CDTFA stating that you qualify for a specific exemption and that you may register your vessel with the DMV without payment of use tax.

If you are documenting your vessel with the USCG, absent a use tax exemption, your California use tax payment is due on or before the last day of the month following the month you were mailed a return by the CDTFA, or the twelfth month following the month in which you purchased the vessel, if you did not receive a return from the CDTFA, whichever period expires first.

If you are not registering with the DMV, you need not, but may, request a Certificate of Use Tax Exemption from the CDTFA.  Regardless, you should carefully document your purchase to ensure you can show your purchase was exempt should you ever be challenged by the CDTFA.

To find the specific tax rate for your area or business location, go to  Find a Sales and Use Tax Rate by Address .

There are several exemptions to California’s use tax, the most common of which are described below. There are complex rules to be aware of when seeking these exemptions, so you should always speak to someone well versed in the tax rules to ensure you qualify.

Forming an LLC or Corporation and Placing your Yacht into the Entity – Exempt Unless Assuming Liabilities .

When starting up a corporation, limited liability company, or partnership and you are placing a vehicle or vessel  into the company as an asset solely in exchange for the first issue of stock in the corporation or for an ownership interest in the limited liability company or partnership, the transfer is nontaxable. However, if the corporation, limited liability company, or partnership assumed a liability or paid any other consideration, it must pay use tax based on the liability assumed and any other consideration given or paid to acquire the vessel. A lienholder on the title generally indicates an assumption of liabilities.

Transferring a Yacht Into An Existing LLC or Corporation – Exempt  if No Consideration

The transfer of a vessel to an existing corporation is not subject to use tax if the property is transferred to the corporation without payment of consideration.

Examples of consideration include cash, credits, shares in the corporation, promissory notes, the fair market value of any trade (including “even” trades), the cancellation of a debt, or the assumption of a loan.

If the corporation gives consideration for the vessel, the transfer is subject to use tax based on the value of the consideration given.

Transferring Your Yacht into A Revocable Trust – Exempt.

The transfer of a vessel into a revocable trust is not subject to tax if all of the following conditions are met:

• The trustees of the living trust have the unrestricted power to revoke the trust;
• The transfer does not result in any change in the beneficial ownership of the property (the people who actually use or benefit from the use of the vessel);
• The trust provides that upon revocation of the trust, the vessel will revert wholly to the transferor; and
• The only consideration for the transfer is the assumption by the trust of an existing loan for which the tangible personal property being transferred is the sole collateral.

Family Transfers – Exempt.

The Sales and Use Tax Law provides an exemption from the use tax when the person selling a vessel is related to the purchaser as either:

• Grandparent
• Brother or sister, if both are under the age of 18 and related by blood or adoption.

Immediate Removal From California After Purchase – Exempt.

A purchaser is not required to pay California use tax if the only use of the vessel in California is to promptly remove it from the state and it will be used soley thereafter outside of California.  No other use can be made of the property in California.  Delays for emergency repairs made to the vessel must be verified as functionally necessary for the vessel to continue its departure from the state.

California Resident Taking Delivery Offshore and Keeping Vessel Out of California for at Least 12 Months – Exempt .

A presumption is made that if a vessel is purchased outside of California, first functionally used outside of California, and brought into California more than 12 months after purchase, the vessel was not purchased for use in California and use tax does not apply.

A limited exception exists to the 12-month requirement is that the vessel may be brought into California during the first 12 months of ownership for the exclusive purpose of the repair, retrofit, or modification (“RRM”) performed by any one of the following:

• A county licensed repair facility;
• A city licensed repair facility;
• A city and county licensed repair facility; or
• A repair facility located within a county that has no licensing requirement.

Therefore, a vessel that enters California during the first 12 months of ownership for the purpose of repair, retrofit, or modification performed by an unlicensed repair facility in a county with a licensing requirement will be presumed to have been purchased for use in California.

The CDTFA may request any documentation that demonstrates out-of-state delivery and use of the vessel outside of California during the applicable test period. Such documentation may include, but is not limited to:

• Mooring receipts;
• Service/fuel receipts;
• Credit card receipts/bank statements;
• Miscellaneous receipts (incidentals, meals, or toll receipts);
• A copy of the purchase agreement or contract;
• Documents that show delivery outside of California and who contracted for that delivery (buyer or seller);
• Documents to show the first functional use outside of California;
• Insurance documents which indicate the location and time period of coverage of vessel and its navigational limits;
• Receipts for lodging; and
• Any other documents showing the location of your vessel during the appropriate test period after purchase.

Non-Resident of California Taking Delivery Offshore and Keeping Vessel Out of California for at Least 6 Months and 1 Day – Exempt .

A non-resident, taking delivery outside of California’s territorial; waters need only keep the vessel out of California for more than 6 months in a 12-month period.  The RRM limited exception also applies.

Purchase of an LLC or Corporation That Owns a Yacht as Its Asset – Exempt .

When purchasing an LLC or corporation that owns a yacht as its principal asset, the ownership of the LLC or corporation changes, but the LLC or corporation’s ownership of the yacht does not change.

Under California’s “occasional sales” rules, the sale or purchase of a shareholder’s shares of stock of a corporation is not a sale of tangible personal property and is not subject to tax. The sale or purchase of a partner’s partnership interest in a general partnership or limited partnership or limited liability partnership, where the transfer of the interest does not cause or result in a dissolution of the partnership, is not a sale or purchase of tangible personal property and is not subject to tax. The sale or purchase of a member’s membership interest in a limited liability company, where the transfer of the membership interest does not cause or result in a dissolution of the limited liability company, is not a sale or purchase of tangible personal property and is not subject to tax.

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Contact AGL Yacht Sales

Phone: (619) 323-1321

[email protected]