Boat Tax 2006 - Emergency Legislation to undo the Kushell decision

On April 12, 2006, Governor Erlich signed two bills that were termed "emergency legislation" and therefore went into effect upon signature. The first of the bills greatly increases the scope of taxation of vessels by undoing the Kushell decision. Therefore, boats that were purchased with no intent that they be used in Maryland, are now taxable if they are principally used in Maryland. There is an exception for active duty military personnel stationed in Maryland, but everyone else best be careful. The second bill codifies longstanding DNR policy by making it possible to purchase a boat in Maryland without paying tax, so long as the vessel is taken out of Maryland within 30 days of purchase. The text can be found on the Maryland General Assembly webpage: To reach the statutes, you can select SB 316 and SB 317 or select Bill Information and Status, then Bills by One or Two Subjects, then "Boats and Ships" in the drop down list. The bills are referenced by "principal use" and "vessels taken out of state." This greatly curtailed the refunds available for the payment of vessel excise tax however, as of 2010, there is anecdotal evidence that some military personnel who may not have to pay the tax have paid. If you have paid the tax within the last three years and are connected to the military or BRAC, call or email to determine if you may be eligible for a refund.