It has been some time since I discussed the basic issues with how Maryland taxes boats and yachts. The basics are that Maryland imposes a 5% tax on the purchase price or fair market value of any boat that is either purchased in Maryland or principally used in Maryland. There are a variety of exceptions to tax. A boat can be purchased in Maryland and taken out under affidavit for use in another jurisdiction. A boat can purchased elsewhere and brought in for up to 90 days without taxation. It can stay much longer without being taxed under certain special circumstances. Below is a rough graphic showing which boats are subject to tax and when. The most important initial consideration is whether the boat was purchased in Maryland.