I get asked this question week after week so read below for a better understanding.
Tax free Delaware? So what are the rules?
The rules are that you should register your boat in its waters of primary use.
Q. I do not live in Delaware, can I still purchase a new boat purchased from you in Delaware and not pay taxes on it?
A. Delaware does not require you to be a resident to register your boat in tax free Delaware and pay no taxes on the boat and/or motor.
Since we are a resort destination store, we have many customers that live in surrounding areas that get Delaware registrations year after year. Most trailer their boats and boat primarily in Delaware waters in addition to others. The question we will ask when we register your boat is “what will be your primary use of waters?” and if you say Delaware, we can sell you a Delaware registration.
Please note that if you get a Delaware registration and place your boat in the water (behind your house or at a marina) for an extended period of time (60-90 days) then that state’s rules apply.