Before you tie up
- Boats with engines generally need a Maryland certificate of number, with some exceptions.
- Apply for a title within 30 days after acquiring a boat that must be titled.
- The excise tax is 5 percent of fair market value, subject to a cap.
- Registration renews every other year and expires December 31.
Buying a boat in Maryland comes with two pieces of state paperwork: a certificate of number, which is the registration and the number on the bow, and a certificate of title, which records who owns the boat. Both come from the State Boat Act in Title 8 of the Natural Resources Article. This guide explains what each requires, the fees and tax the statute sets and the deadlines to watch.
Which boats must be numbered
Section 8-712 requires any vessel equipped with propulsion machinery of any type on Maryland waters to be numbered. The statute lists exceptions, including:
- a vessel with a valid document issued by the U.S. Coast Guard;
- a vessel validly numbered under federal law or another state’s approved system, while displaying that number and carrying the certificate;
- a vessel from another country using Maryland waters for less than 90 days;
- a vessel propelled only by sail;
- a vessel manually propelled;
- public service vessels owned by government, and ships’ lifeboats.
Section 8-713 adds that no one may operate, or give permission to operate, a vessel on Maryland waters unless it is numbered as required.
The certificate of number
The owner applies to the Department of Natural Resources on its forms, signed by every owner, with the fee. The application must include each owner’s mailing address, phone number and email, to be used in an emergency or if the boat is at risk of becoming an abandoned or sunken vessel. The statute sets these fees:
| Item | Fee under section 8-712 |
|---|---|
| Application for a certificate of number | $70 |
| Replacement or corrected certificate | $20 |
| Returned check | $5 service charge |
Certificates are valid for up to two years. The owner may renew every other year, and a renewed certificate expires on December 31 of the year after it is issued. The number must be painted on or attached to each side of the forward half of the hull or superstructure, kept legible, and the certificate must be available for inspection whenever the boat is in use.
Tip: A certificate of number expires when the boat is sold or transferred. If you are buying, the seller’s registration does not carry over to you.
The certificate of title
Section 8-715 requires the owner of a vessel principally used on Maryland waters that must be numbered to apply for a certificate of title, and the Department may not issue or renew a certificate of number without one. The owner must apply within 30 days after acquiring the boat, with the application sworn or certified and showing the date of sale and gross price, or the fair market value if there was no sale. No one may sell or transfer a titled vessel without delivering the title with an assignment to the buyer.
The excise tax
Section 8-716 charges a $20 fee to issue a certificate of title, a transfer or a duplicate, and levies an excise tax of 5 percent of the vessel’s fair market value on the issuance of titles, on sales within the State and on possession in the State of a vessel used principally in Maryland. The tax is capped: the maximum was set at $15,000 for any vessel and increases by $100 on July 1, 2016 and every July 1 after that.
If a licensed dealer does not collect the tax, the owner must send it to the Department within 30 days of the sale, or for a boat bought outside Maryland, within 30 days after its possession in the State became taxable. The statute exempts certain transfers, including transfers between members of the immediate family as defined by Department regulations.
Buying a boat in a Baltimore marina
- Ask the seller for the title and check that the name matches.
- Check whether money is owed on the boat; the Department may refuse a transfer until a recorded debt is paid or recorded on the new title.
- Ask the marina whether any slip or storage fees are owed, since unpaid charges can create a lien on the boat; see Unpaid Slip Fees and Abandoned Boats: What Maryland Law Says.
- Apply for your title and number promptly; the 30-day clock starts at acquisition.
Documented boats
Some boats are documented with the U.S. Coast Guard instead of numbered by the state, which is one of the statute’s exceptions. Documentation is a federal process with its own rules, so if a boat you are buying is documented, check its status before you pay.
Next
Once the paperwork is done, the operator needs a certificate too: see Maryland’s Boating Safety Certificate: Who Needs One. Marinas may also ask for proof of registration before signing a slip agreement, as explained in What a Boat Slip Agreement Should Say.