Internet Newsletter

From The 90 Day Yacht Club Guide to Ensenada

November/December 2007

Volume 5 , Number 11/12

 

A true traveler has no fixed plans and is not intent upon arrival®

True Traveler Publishing

P.O. Box 60023

San Diego, CA 92166

E-mail:

sitka@truetraveler.com

Phone:

(619) 857-0368

 

 

 

 

 

 

 

                                                                 

AN OFFSHORE DELIVERY PRIMER

THIS ARTICLE WAS PUBLISHED IN THE OCTOBER 2007 ISSUE OF LATITUDE 38 IN COLLABORATION WITH TRUE TRAVELER PUBLISHING

THAT ALMOST 8% SAVINGS IS ALOT OF TACOS AND TEQUILA SENOR Y SENORITA!

      +=

          The 90 day rule is back. As of August 21, when the Senate finally approved the new state budget, you can avoid paying sales tax on a yacht (or airplane or RV) if you keep it out of the state for 90 days after purchase. This was such a common practice a decade or so ago that Marina Coral in Ensenada was nicknamed the '90 Day Yacht Club'. In 2004, the State Legislature put the kabash on the deal, rewriting the law so that you had to stay out of state for a whole year. Their thinking was that this would discourage the practice and swell the state coffers by about $55 million. It apparently didn't occur to them that, with only a little more effort, those who bought high-dollar yachts or planes could form an offshore corporation to buy the item - thereby also avoiding tax.
          At any rate, the 90 day rule is back. For a refresher course on how it works, we contacted Captain Lonnie Ryan, author of The 90 Day Yacht Club Guide to Ensenada. If anyone would know the latest news, it would be him. So here, as well as he or we understand it, are the high points of the law as it now stands .  .  .
          It used to be that you had to physically perform the transfer of ownership by following your boat-to-be out to the three-mile limit in a chase boat. Once legally out of state waters, you had to transfer to the yacht where you and the owner or owner's representative (such as a broker) would exchange a check or bank draft for title documents. The owner or rep would then board the chase boat for the ride home, while you took your new yacht north or south to another state or country. To prove you actually did it, all this had to be chronicled on film and overseen by sworn witnesses who would sign affidavits for later scrutiny by state officials.
          Currently the law is less stringent. Now you can ride out and back aboard the yacht with the old owner or broker. Then, after completing the transfer, you are now allowed to come back to your California port and spend up to 89 days readying the boat and yourself to leave the state for the prescribed period. As to that, the '90 Day Yacht Club' is a bit of a misnomer. Since you must spend
a full 90 days offshore - and why push the issue? - to be perfectly accurate, it might better be called the 91 day rule.
          As in the past, it remains of utmost importance to chronicle everything. Luckily, current technology such as camera phones, digital cameras and camcorders, and GPS make this easier than ever: break out the camcorder and film the GPS as soon as it verifies you are outside the 3-mile limit. Keep filming or snapping (make sure the camera's internal time and date settings are accurate) as you exchange the money and ship's papers, while everyone signs an ' affidavit of delivery' with the lat/lon noted, and even when you shake hands to complete the deal. (If you're working through a broker, he will bring all the necessary paperwork.)
          One often overlooked aspect of the transfer is that you need to insure your new yacht at the time of the sale. Again, technology to the rescue: use your cellphone to call your insurance broker to get your insurance going after the transfer is completed. The date and time he puts on the binder will be viewed later as a critical proof of when the transfer of ownership at sea
occurred.
          Be aware that all your ownership paperwork must be complete before you can legally do anything with the boat, such as navigate it, sail it, fish from it or pay slip fees for it, either in California or Mexico. Also be advised that 'cutting corners' on any of this could result in you having to pay the tax at some later date.
          Now for the difference between tax avoidance and tax compliance. In the eyes of the law, if you purchase a yacht offshore, keep it in a Mexican marina for three months and then bring it back, this could be interpreted as tax avoidance - and you could be charged tax. To be tax compliant, you must use the yacht while it's offshore - stay on it, sail it, party on it . . . and again, keep exhaustive video, digital and paper records. Save receipts for everything from
fuel to flights to fajitas.
          Within 12 months of purchase, you will receive a bill from the state for the full amount of tax due. Everybody gets these whether they've taken possession offshore or at their local marina. Now is when you claim the 90 day exemption (via state form BOE-106) and submit all your proof. Just arrange all the papers, CDs, DVDs, photos and so on neatly in a envelope or binder and send it in. As with everything legal, it's best to send copies and keep the
originals of everything you send. If you did everything properly and in order, you will not hear back from the tax man. If you didn't, you will.
          A few final words: be aware that the 'fine print' recognized by the State Board of Equalization changes now and then. Most yacht brokers these days are knowledgeable in the general aspects of the offshore delivery process, but if you really want to make sure everything will turn out correctly, you should consult a state-licensed maritime tax attorney. He or she should be able to guide you through the intricacies of the process as it's being applied at the time of sale.

________________________

Seriousness is the only refuge of the shallow.
  Oscar Wilde

________________________

OUR BEST SUGGESTION FOR HIRING A PRIVATE SPORT FISHING BOAT IN ENSENADA.

 

            One of our favorite waterfront acquaintances in Ensenada is Pedro Moreno. He has been a licensed Captain for 40 years and for 18 years ran one of the biggest and best local sport fishers, the Ensenada Clipper owned by Sergio’s Sport Fishing in the downtown Ensenada harbor.

            His current business is part fun and part work, well mostly fun. He is the private and sole Captain on visiting private yachts that are here for a duration of time or simply for the weekend. His extensive knowledge of local and long range Baja fishing waters allows him to charge fees unheard-of in the recent past on these private visiting yachts he oversees, not being realized by any of the other Mexican skippers I know.  And as you will soon find out, he is well worth it! As personal Captain on your yacht you will have a 24 hour personage that will accompany you and your crew not only on the water, but also navigating around town. He will have your boat fit and clean when you arrive, pamper you while you are here and clean up the mess after you depart back to the states.

            Pedro has his own charter boat in the downtown harbor named the Contender. This 36 foot Egg Harbor is well suited for parties of up to 10 people. He can provide the bait, the fishing gear and licenses, the food and the beer and the spots to fish that will fill up your teams coolers for the trip home. We have set up charters for parties from the states, all of which went home fully satisfied. The typical current fare is $500 for the boat for the day, without any time or passage limitations. Pedro and his crew will stay out all day long, and range as far as necessary to seek out the fish at the locations he has charted in his GPS. The cattle boats out if Ensenada are operated by union workers, and can only stay out for an 8 hour day. Pedro and his guys have no such limitations and can stay out as long as you wish.

            The Contender was just repowered, and is more fuel and speed efficient now. The price quoted above includes the fuel cost, bait and fishing gear, all other additions can be negotiated prior to the date of departure. Pedro requires 50% down to save the date and insure you will be provided first class service on the date agreed. This is of course fully refundable if weather or other forces unforeseen intervene. Contact us on our feedback page if you want to contact Pedro, we will be happy to help facilitate your day out catching the local “big ones”.

PEDRO WEARING OUR LATEST DESIGN NOW AVAILABLE AT WWW.GILLBILLY.COM

 A BACHELOR PARTY TOURNAMENT SET UP WITH ANOTHER BOAT IN THE HARBOR BY PEDRO, THE 10 GUYS ON THE CONTENDER WON THE DAYS CONTEST WITH A HUGE COOLER FULL OF FISH TO TAKE HOME!

THE CONTENDER

________________________

The visionary lies to himself, the liar only to others.
  Friedrich Nietzsche

________________________

IN OUR BOOKS WE ENCOURAGE YOU TO VISIT THIS WEBSITE OFTEN FOR PERIODIC UPDATES. WELL HERE IS ONE, THE UPDATED MAP OF THE TECATE BORDER CROSSING. FEEL FREE TO PRINT THIS AND PLACE IT IN YOUR CURRENT EDITION OF OUR BOOKS!

CLICK ON THE ABOVE THUMBNAIL AND USE YOUR BROWSERS BACK BUTTON TO RETURN. COPY LARGER IMAGE AFTER OPENING TO YOUR COMPUTER AND PRINT FOR USE

Legislature brings back tax break for boats delivered offshore.

SACRAMENTO - When legislators finally approved California's state budget Aug. 21 after a 51-day-long impasse, it contained a nice surprise for boaters: the return of a sales tax exemption on the purchase of yachts in California that are delivered offshore.

The new provision allows buyers of a boat, plane or recreational vehicle to avoid paying sales tax, as long as they follow specific guidelines and keep it out of the state for at least 90 days after the purchase. The legal requirements are somewhat complex, so getting the advice of both a tax professional and a yacht delivery firm experienced in offshore deliveries is a must.

This provision replaces a measure enacted in 2004 that had required boat buyers (along with RV and aircraft buyers) to keep their purchased vessel outside California for a full year to qualify for an exemption.

Senate Minority Leader Dick Ackerman, R-Irvine - a boat owner - is credited with spearheading the drive to remove a renewal of the one-year out-of-state requirement from this year's budget. Ackerman told reporters that the 2004 law restricting the sales tax exemption "was going to be an experiment," and he believes that experiment had failed.

Yacht brokers and boat builders statewide had been adversely affected by 2004's tougher requirements for buyers who sought to avoid sales tax, Ackerman said. A return to the 90-day out-of-state requirement for offshore deliveries is expected to provide a valuable incentive for new buyers, resulting in increased sales of larger vessels by California yacht dealers and brokers.

The tax savings will especially be a boon to buyers of larger yachts. For example, while the tax savings on a $250,000 38-foot sportfisher would be around $19,500, the buyer of a $3 million 60-foot motoryacht could save a whopping $234,000 through the exemption.

In order to take advantage of the sales and usage tax exemption, buyers are required to carefully follow state tax codes. In addition to taking delivery of their vessel outside California, buyers must keep the boat out of state waters for at least 90 days of the first 180 days of ownership. The boat must actually be used during that time period (not simply stored out of state) and the original intention of the buyer must to use the boat outside of California. Many boaters opt for a slip in one of Ensenada, Mexico's full-service marinas, which some boaters have dubbed "the 90-day Yacht Club."

In addition, boat buyers must be able to document all aspects of the vessel delivery and the out-of-state berthing, to prove compliance with state law. Several books are available that describe the process, including Capt. Lonnie Ryan's "The 90-day Yacht Club Guide to Ensenada." While reputable California yacht brokers can explain basic details of the law regarding exemptions, it is wise to engage the services of a professional tax advisor and a company that has experience with the requirements involved in an offshore delivery.

The return of the 90-day requirement was approved as one of several budget compromises with Democratic legislators, which resulted in passage of the $145.5 billion budget signed by Gov. Arnold Schwarzenegger on Aug. 25.

>FROM A RECENT EDITION OF THE LOG NEWSPAPER<

________________________

Thomas Jefferson once said, 'We should never judge a president by his age, only by his works.' And ever since he told me that, I stopped worrying.
  Ronald Reagan

________________________

 

BELOW IS A NOTE FROM RICARDO COLLINS, OWNER OF GALAXY ELECTRONICS. WE ENDORSE SENOR COLLINS FOR ALL YOUR ELECTRICAL AND ELECTRONIC REPAIRS WHILE YOU ARE IN ENSENADA

WHAT IS Galaxy Electronics?

          It's an international enterprise of repair service and maintenance of marine, commercial and industrial electronic equipment, with over 25 years of experience.  We have a highly skilled team of technicians and engineers on site.  We have been an international leader in electronic equipment repair during these 25 years.  Our goal is to have clients 100% satisfied with our services, that's why the motto that has made us famous is: "For us, each job its a challenge".

          We sell, repair and maintain marine electric and electronic equipment for pleasure, commercial and sport ships such as tuna or shrimp boats, merchant boats, yachts, luxury yachts and sailboats.  We repair electronic measurement or industrial control equipment for maquiladoras or industrial facilities. We patent, design and manufacture electronic equipment for diverse applications. We manufacture professional grade karaoke equipment for renting.  We are able to manufacture any type of known or unknown electronic control system that contains an electronic stage or that is driven by an electronic circuit.

Our services

Our main activity is the sales, repair, installation and service of power boat, sailboat and commercial fishing electric and electronic equipment, offering you our 100% satisfaction guarantee.  You may recognize all the brands that we handle.  You can trust your ship to us as we are trained by the manufacturer to offer the most prompt and efficient service that you deserve.

WEBSITE ADDRESS- http://www.gxelectronics.com/index.html

WHAT CUSTOMERS SAY ABOUT GALAXY ELECTRONICS- http://www.gxelectronics.com/Customers.html

E-MAIL- collinsgx@gmail.com

Phone- (619)733-4382

Cocaine is God's way of saying that you're making too much money.
  Robin Williams

________________________

THE MODERN DAY PRESIDIO

SECURITY ISSUES CONTINUE TO STALK BAJA VISITORS

The Santa Barbara Royal Presidio, built in 1782, was the last of four military fortresses built by the Spanish in California. The original fort was a fully enclosed quadrangle surrounding an open parade ground.

            As Baja struggles to emerge from its third world status, one constant remains; it is still viewed as essentially a lawless society. There is absolutely no safety beside the remote campfire, sleeping in the secluded beach cabin or even on the public highways as illustrated by the recent rash of carjackings. You soon realize if your privacy and personal belongings are invaded and vandalized, a call to the local authorities that were not there to protect you in the first place are slow to respond to your plight after the incursion.  Through progressions of evolution the fact still remains, one of the safest places in Mexico that is currently considered secure is in the modern form of the traditional cultural structure of local protection, the presidio. Here you find safety in the solace of hired guards and a walled enclosure.

            Spain's colonization strategy of Northern Mexico was through the establishment of missions, pueblos and presidios, each having a distinct function. Missions were intended to be the facilities for turning natives into Christian citizens of the Spanish empire, thus providing a civilian population, a labor force and auxiliary military support for protecting Spanish interests in the area. The pueblos (towns) were supposed to be composed largely of families recruited in Mexico. They were expected to provide agricultural support for the presidio companies, while also expanding population centers and military reserves in case of invasion. Finally, the presidios were the military outposts established to provide coastal defense from foreign invasion and to defend the missions and pueblos. In addition to their military role, they were the civil, economic and social centers for the frontier settlements. The presidios were the trading centers, which received and disbursed the annual supply of goods from Mexico, on which the entire population was dependent for survival. The presidio companies, composed largely of married soldiers and their families, were planned as "seed" communities from which future pueblos would grow, thus strengthening Spain's claims to the region. All of the presidios met to varying degrees the goals assigned to them by the Spanish Crown. Most were successful in fulfilling their role as "seed" communities. Pueblos grew up around the forts as military personnel retired from active duty and constructed adobe homes nearby.

            Currently it is considered dangerous to live in the Baja pueblo without barred windows and big dogs. It is against the law to bear arms in Baja, so either pets or other means must be employed to protect one’s life and property from banditos. The walled community or modern day presidio is the more preferable arrangement. The gated marinas that contain some of the most expensive gringo possessions, the large yachts, have the most well developed security measures. Long established communities like Las Gaviotas also have high walls and extensive community security protection. The feeling of vulnerability when you leave the confines of the security bubble that you are comfortably within is understandable, because suddenly you are confronted by a band of glances that often give away the contempt and desire for what you are and have. On busy weekend days, constant sirens outside your stronghold may make you all the more less likely to leave the nest.

            One of the highest priority security zones in Ensenada is the Cruiseport Marina and cruise ship dock facility.  Thousands of touristas from outside Baja disembark here daily to visit the local trinket shops and cantinas and subsequently dance on the tables. A terrorist type attack on the Cruiseport compound would be a major blow to the local economy. Across the harbor, the same is true of the container ship docks; any disruption of the life support supply line that the containers are delivering would soon cripple the entire northern Baja economic realm.

            The security infrastructure in Baja is by far the most important subject to be discussed in the future. The police can't protect who are here now, how can they be expected to protect all that are supposedly going to buy these quickly reproducing condo units? The bad press that has been recently reported in the southern California news media will make it impossible to sell these structured cubicles, regardless of how beautiful the view is, if these security concerns are not mollified. The awareness that one must live in a private security zone without being able to visit the outside world and see the many attractions that exist in Baja will further stem the flow of new tourism dollars and citizens from north of the border.

________________________

READ THE TWO PAGE JULY 2006 SEA MAGAZINE ARTICLE PRESENTING A PROFILE ABOUT THIS AUTHOR, OUR BOOKS AND THIS WEBSITE. CLICK THIS LINK TO VIEW THE ARTICLE

SEA MAGAZINE

________________________

INQUIRE ABOUT OUR YACHT DELIVERY SERVICES AND ENSENADA ARRIVAL SUPPORT CONFERENCING AT THE BELOW LINK

FEEDBACK PAGE

OR RING US AT (619) 591-TRUE

________________________

OUR NEW WEBSITE spycamair.com IS NOW UP!

REAL ESTATE, SPECIAL EVENT AND YACHT PHOTOGRAPHY AVAILABLE

           The quiet operation of our specialized aircraft enables us to photograph without ground recognition from low altitudes. We specialize in close-up aerial photography utilizing the latest in model airplane and high resolution digital camera technology. Our drones are able to accomplish their assignments without FAA flight restrictions. Our experienced piloting skills enable us to take photos that would be otherwise impossible to obtain. We are not limited to low altitude flight, as our aircraft can operate above 1,000 feet with the same superior photo accuracy and reliable results.

________________________

Do not fear to be eccentric in opinion, for every opinion now accepted was once eccentric.
  Bertrand Russell

________________________

IN OUR BOOKS WE ENCOURAGE YOU TO VISIT THIS WEBSITE OFTEN FOR PERIODIC UPDATES. WELL HERE IS ONE, THE UPDATED MAP OF THE TECATE BORDER CROSSING. FEEL FREE TO PRINT THIS AND PLACE IT IN YOUR CURRENT EDITION OF OUR BOOKS!

CLICK ON THE ABOVE THUMBNAIL AND USE YOUR BROWSERS BACK BUTTON TO RETURN. COPY LARGER IMAGE AFTER OPENING TO YOUR COMPUTER AND PRINT FOR USE

________________________

DALE ERWIN AND THE BAJA BASED TRUE TRAVELER MIGHTY #29 TEAM WIN THE STREET STOCK POINTS CHAMPIONSHIP AT THE BARONA SPEEDWAY!

BUT IT WASN'T EASY! THE MIGHTY #29 SURVIVED A CRASH IN ITS HEAT RACE THAT BROKE THE LEFT REAR BUMPER MOUNT.

THANKS TO JIMMIE JOHNSON WE PICKED UP A BIG CASH AWARD

2007 BARONA SPEEDWAY STREET STOCK CHAMPION - DALE ERWIN!

Above 3 Photos by Pete Liebig available at http://paklphoto.com/

 ________________________

The height of cleverness is to be able to conceal it.
  Francois de La Rochefoucauld

 ________________________

A Quiet Baja 1000
LESS TOURISM AND NO PARTY ARMOSPHERE

          The recent Baja 1000 was a ghost. There was practically no pulse in Ensenada prior to the legendary event that historically creates a noticeable stir and party atmosphere on the streets. The race teams arrived late, just before the race started, and left as quickly as they arrived. There were no sounds of huge horse powered engines cruising the area, hotels were empty, and the restaurants had to solicit the few passer bys. In the past, racers used to arrive one week or more prior to the race, pre-run the course, celebrate, party and spend money in Ensenada. Not this year.          The major reason for the empty streets in Ensenada was probably the length of this year's course, which finished in Cabo San Lucas. The teams had to provide a 1296 mile supply line down the Baja peninsula at the many pit stops at preordained mileage points. Those support trucks probably never even stopped in Ensenada and continued on to their destinations along the race route.           The lack of spectators from north of the border this year was a vivid reminder of the current lagging economy and the bad press that has haunted northern Baja recently. Last year, 73 year old Lloyd Duane Curtis was camping near Mulege on a beach to watch the pre-Baja 1000 activities. Read that article and view the associated photos in our November/December 2006 Newsletter. He was murdered for his Jeep, reportedly by a Baja family that he had invited into his camp. That story received widespread TV coverage in San Diego, and probably deterred many potential fans from coming to Ensenada to view the festivities that used to occur in previous years.          On Sunday before the race, waiter Arturo Alarcón at the El Corralito restaurant in downtown Ensenada said that this was the slowest Baja 1000 ever. They have seen more that a few Baja 1000's, having been established in 1966. The El Corralito is a favorite with racers, fans and locals, but Friday and Saturday nights were muerto, and they were still waiting for folks to show up on Sunday.

         Finally on Sunday, the race cars came out of the transporters and made some noise in preparation for the technical inspection on Monday. The team support helicopters came streaming in, performing their flyovers to their base camps. All the race and media types hanging around at the San Nicolas Hotel were overheard asking each other if their friends had arrived yet. It seems the logistical plan this year was to show up as late as possible, and compete in a more economical fashion. It was game faces only at this year's Baja 1000, and the party atmosphere was definitely non-existent.

 

 

 

 

 

Click the link below to view and purchase our selection of True Traveler Products 

True Traveler Online Store

  

 Please e-mail us with your experiences, good or bad, using our books on our feedback page. Thank you for purchasing our books and we wish you many safe and happy True Travels.

  

RETURN TO ARCHIVE DIRECTORY

RETURN TO CURRENT NEWSLETTER

Google

 

 

     

Copyright Sitka Sails Incorporated ©2002-2008

Website Design by Feel Flows