In 2013, the Maryland General Assembly passed legislation capping the five percent vessel excise tax at $15,000. The new law, which went into effect on July 1, 2013, offers a financial incentive for boaters to trade-up, or register an out-of-state vessel in Maryland.
“Our hope is that residents from Virginia, DC, New Jersey – anyone looking to take advantage of the best the Chesapeake Bay has to offer – will dock their boat in Maryland to allow for an easy Bay getaway,” said Mark O’Malley, DNR director of Boating Services. “Whether you’re after excellent fishing, recreation or world-renowned seafood, our great State is an amazing place to live, visit, work or play!”
Previously, boaters paid a five percent uncapped tax on the purchase price or fair market value of a vessel with principal operation in Maryland. The new law affects boats valued at $300,000, either newly purchased or relocated here.
Boaters who select Maryland as their primary home port will receive full credit for vessel taxes paid to the State where their boat was previously registered.
Boaters that are trading up will pay tax only on the difference between the purchase price of the new boat and the trade-in value.
source: Maryland Department of Natural Resources