Avoid Common Boat Registration Mistakes

Maryland’s clean and deep waters are some of the most gorgeous in the nation. It attracts over 200,000 registered boats and 12,000 personal watercraft. Whether you’re into waterskiing, fishing, or swimming, Maryland water is a great place to be. However, boating in Maryland has strict safety, registration, and titling requirements. Before you head out on the freshwater or the saltwater, check out our 1A Maryland Registration Tag and Title guide to avoid common mistakes in boat registration.  

How do I know if I need to register my boat?

Your commercial or recreational boat must be registered in Maryland if it is equipped with any primary or auxiliary mechanical propulsion, and it must be used in Maryland for most of the calendar year. There are some other situations where you might need to know to register your vessel, such as:

• Suppose you bought your vessel in Maryland and will use Maryland waters for most of the calendar year. In that case, you are liable for boat excise tax, and you must register the boat within 30 days of purchase to avoid the assessment of penalty and interest. 
• If your boat was purchased elsewhere or previously registered in another jurisdiction, is now in Maryland waters, and will use Maryland waters more than any other jurisdiction during the calendar year, you are liable for boat excise tax and must register the boat within 30 days of entering Maryland waters. 
• Suppose your boat is duly registered in another jurisdiction but remains in Maryland waters for over 90 days in a calendar year. In that case, you may be liable for boat excise tax unless you can prove principal use in another jurisdiction. 

What is “principal use?” 

“State of principal use” means the jurisdiction on whose waters a boat is used or to be used most during a calendar year, which is the period from January 1 through December 31. “Use” means to operate, navigate, or employ a boat. A boat is in use whenever it is upon the water, whether it is moving, anchored, or tied up to any dock. A boat is also in use if it is kept in readiness for use.

Registering in Maryland ensures your vessel is legally recognized and meets safety standards. At 1A Maryland Registration Tag and Title, our experienced team will guide you to ensure your boat is properly titled in Maryland.

Contact us today!

You’ll need specific documentation, including the vessel’s hull identification number, to start the registration process. For detailed requirements and to access the necessary forms, Contact us today or visit the Maryland DNR Boating Registration page.

Required Documentation

One frequent mistake is submitting incorrect or incomplete documentation. To register your boat, start by collecting the following essential documents:

• Hull Identification Number (HIN): Ensure this unique identifier is readable.
• Previous Registration: If the boat was registered elsewhere, provide proof.
• Proof of Excise Tax Payment: Show evidence of tax paid in another jurisdiction if applicable.

Whether you’re dealing with a previously titled vessel, a brand-new one, or even a new vessel purchased online, the process can seem daunting. However, it can be easy to follow with the correct information and our guidance. 

Existing Vessel Currently Titled in Maryland

If you’re buying a vessel that’s already titled in Maryland, you need to consider the following information: 

1. Original Maryland Title:
   • Ensure the title is appropriately assigned. This means it must include the purchaser’s name, the seller’s signature and date, and the purchase price.
2. In Section 2:
   • Calculate and enter the necessary taxes and fees.
3. In Sections 4 through 7:
   • Complete these sections thoroughly. All purchasers must sign in section 7.
4. Original Certified/Notarized Bill of Sale:
   • This is required if the purchaser’s name, sale date, or price is missing. The bill of sale must include:
     • Names of the buyer and the seller
     • Date of sale
     • Seller’s signature
     • Amount of sale
     • Vessel description (year, manufacturer, hull identification number, and/or current registration number)
5. Original Lien Release:
   • You will need the original lien release document if the seller’s title shows a recorded lien.

New Vessel

Titling a new vessel in Maryland requires the completion of DNR Form B-240 and the Original Manufacturer’s Certificate of Origin (MCO). For a brand-new boat, the steps are slightly different:

1. DNR Form B-240:
   • Complete this form accurately.
2. Original Manufacturer’s Certificate of Origin (MCO):
   • You will need this certificate as proof of the vessel’s origin.
3. Original Certified/Notarized Bill of Sale:
   • If the MCO does not contain the purchaser, purchase price, date of sale, and signature of all owners, an original certified/notarized bill of sale is required. This bill of sale must include the following:
     • Names of the buyer and seller
     • Date of sale
     • Seller’s signature
     • Purchase price
     • Vessel description (year, manufacturer, hull identification number, and/or current registration number)
     • A declaration statement: “I declare and affirm under penalty of perjury that the facts in this bill of sale are true and correct.”

New Vessel Purchased via the Internet

Purchasing a vessel online, especially those 12 feet in length or smaller, involves some specific requirements:

1. DNR Form B-240:
   • Complete this form as required.
2. Manufacturer’s Certificate of Origin (MCO):
   • Ensure you have this certificate. Note that online purchases might involve an MCO with no signature or a preprinted signature, or you may be directed to create the MCO via a website.
3. Pencil Tracing or Photograph of the Hull Identification Number:
   • This serves as additional proof of the vessel’s identity.
4. Evidence of Payment:
   • Provide proof that you have paid for the vessel.

Used Vessel 

Titling a used vessel in Maryland varies depending on the vessel’s previous registration.

Used Vessel Registered in a Title State

1. DNR Form B-240:
   • Complete this essential form.
2. Original Title:
   • Ensure the title is appropriately assigned. It must include the purchaser’s name, the seller’s signature and date, and the purchase price.
3. Original Certified/Notarized Bill of Sale:
   • Required if the purchaser’s name, sale date, or price is missing from the assignment of the title. The bill of sale must include:
     • Names of the buyer and the seller
     • Date of sale
     • Seller’s signature
     • Amount of sale
     • Vessel description (year, manufacturer, hull identification number, and/or current registration number)
4. Original Lien Release:
   • You need the original lien release document if the seller’s title shows a recorded lien.

Used Vessel Registered in a Non-Title State

1. DNR Form B-240:
   • Complete this form as required.
2. Copy of Out-of-State Registration Card or True Test Copy:
   • Provide a copy of the out-of-state registration card or a true test copy of that state’s official vessel record.
3. Original Certified/Notarized Bill of Sale:
   • Ensure this document includes the following:
     • Names of the buyer and the seller
     • Date of sale
     • Seller’s signature
     • Amount of sale
     • Vessel description (year, manufacturer, hull identification number, and/or current registration number)
4. Original Lien Release:
   • You need the original lien release document if the registration card or vessel record shows a recorded lien.

Previously U.S. Coast Guard Documented Vessel

If the U.S. Coast Guard previously documented the vessel, you need to follow these steps:

1. DNR Form B-240:
   • This form must be filled out completely.
2. Original/Certified Notarized Bill of Sale:
   • The bill of sale must include:
     • Names of the buyer and the seller
     • Date of sale
     • Seller’s signature
     • Amount of sale
     • Vessel description (year, manufacturer, hull identification number, and/or current registration number)
3. Photocopy of Seller’s Certificate of Documentation:
   • Provide a copy of the seller’s certificate.
4. USCG Abstract of Title:
   • Obtain this by contacting the U.S. Coast Guard at 1-800-799-8362.
5. Release of Ship’s Mortgage:
   • Required if applicable.

Documented Vessel (For Use Decal and/or Tax Payment)

For vessels that require a use decal or tax payment:

1. USCG Stamped Bill of Sale:
   • Ensure it includes the selling price.
2. Photocopy of Current Certificate of Documentation:
   • Include this in your submission.
3. DNR Form B-240:
   • Fill out this form completely.

Important Notes

• National Vessel Documentation Center (NVDC): Be cautious of commercial entities offering to manage the certification/renewal process for a fee. The Coast Guard does not endorse these entities and is not authorized to issue documentation.
• Hull Identification Number (HIN): Verify that the HIN engraved on your vessel matches the HIN on your ownership documents. If they do not match, contact a DNR Service Center for instructions.

Abandoned Boat Process

Under Maryland’s State Boat Act (8-722), individuals can claim title to a vessel abandoned on their property for more than 180 days by completing DNR Form B-117. Other solutions exist for lost titles or those not given a title at purchase. In such cases, purchasers should either:

• Contact the owner of record for a replacement title.
• Contact a DNR Service Center for further instructions.

Key Points to Remember

• Always ensure all documents are correctly filled out and signed where necessary.
• For any missing information in the assignment of title, a certified/notarized bill of sale is mandatory.
• Ensure that the bill of sale includes all required information, such as the declaration statement for new vessels.

Deadlines

Another common error is missing deadlines, particularly the 30-day window for paying the vessel excise tax after purchase.

Tip: Mark essential deadlines on your calendar and set reminders to ensure timely compliance.

Fee Calculations

Incorrectly calculating fees can lead to delays and additional costs. Excise tax must be paid within 30 days of Maryland tax liability to avoid penalties and interest.​ The minimum tax is $5, and effective July 1, 2024, the maximum tax is $15,900​. 

• Title Fee: $2
• Registration Fee: $24 (for two years)
• Vessels 16 feet in length or less and/or propelled by a motor of 7.5 hp or less must display a 2-year registration decal but are exempt from the fee.
• The 2-year registration decal is valid for the calendar year it is issued and the subsequent year, expiring on December 31.
• $10 DOCUMENTED DECAL (required of USCG documented vessels in lieu of the registration fee)
• $15 SECURITY INTEREST FILING FEE (if a lien is to be recorded)

Tip: Use the Maryland DNR’s online resources to confirm fee amounts.

How to Renew Your Registration

To avoid penalties, you must renew your registration every two years before it expires.

Options

• Online
• In-Person
• By Mail

By following these steps meticulously, you can ensure a smooth registration process and enjoy Maryland’s waterways without legal hiccups. You can also ensure a hassle-free process in titling your boat in Maryland by contacting 1A Maryland Registration Tag and Title. We are dedicated to providing the best service in the area. 

Summary

Registering your boat in Maryland involves understanding the requirements for different vessel types, following the correct registration steps, and knowing the fees involved. Special circumstances like dealing with abandoned or homebuilt boats require additional documentation and processes. When selling or transferring your boat, promptly notify the DNR, remove decals, and request refunds if applicable.

Final Tips for Boat Owners:

• Keep Records: Always keep copies of your documents.
• Stay Informed: Regularly check the Maryland DNR website for updates or contact us.
• Plan Ahead: Start the registration process early to avoid delays.

Ready to simplify your boat registration process? Trust 1A Maryland Registration Tag and Title for fast, efficient, and reliable service. Avoid the hassle and ensure your boat is compliant with state regulations. Contact us today and experience seamless titling and registration. Your adventure on Maryland waters starts here!