Section 25 of 38
Chapter 24: Vessels
24.185 Yacht and Ship Brokers
Yacht and ship brokers negotiate the purchase, sale, or exchange of yachts, but do not own the yachts. Yacht/ship brokers and “for hire” operators are licensed by: (CHNC §701a)
California State Parks Division of Boating and Waterways
1629 “S” St.
Sacramento, CA 95814-7291.
Brokers Authorized as Vessel Agents—may collect the registration fees and use tax due or collect the registration fees only and DMV headquarters will collect the use tax due from the buyer.
Brokers Not Authorized as Vessel Agents—must give the documents to the buyer. The registration fees and use tax are collected by DMV.
When an applicant claims they paid use tax to the broker, have them complete a REG 256 which explains that. Send the application to the Vessel Section in Registration Processing Unit (RPU) II in DMV headquarters.
The following must be submitted:
- The same document/clearance requirements for yacht/ship broker sales as for other nondealer transactions.
— A bill of sale from the yacht/ship broker to the buyer is not required.
— The broker’s name is not entered on the back of the Certificate of Ownership.
- Use tax rather than sales tax.
— A Vessel Dealer or Manufacturer Sales Tax Certification (BOAT 110) form must be submitted with the application if the broker collected use tax from the buyer.
The procedures below must be followed:
- Return applications for payment of use tax due to the legal owner/lienholder, if any, or to the registered owner, not the broker.
- For motorized vessels—issue one set of Vessel Carbon Monoxide Warning Stickers and companion brochure with every completed renewal transaction. Advise the customer to affix the stickers as explained in the BOAT 3 booklet.