No, US Coast Guard Documented vessels are exempt from registration requirements in the State of Maryland, although they must display the Documented vessel decal.
A federally documented vessel with principal operation in Maryland, though exempt from the vessel numbering provisions of the State Boat Act, must display documented use decals. The vessel is subject to vessel excise tax and to inspection by the Maryland Natural Resources Police. The documented use decals must be displayed on each side of the forward half of the vessel in a conspicuous manner so as to be easily seen from a passing vessel.
A vessel is not federally documented until it has a valid document from the U.S. Coast Guard and has had its official number carved into a main beam or a main structural member. Application for documentation is not sufficient to exempt a vessel from state numbering and titling requirements. Until officially documented, a vessel must have a valid Certificate of Vessel number and display a boat number and registration decals to operate on Maryland waters.
A 5 percent vessel excise tax is due to the Department of Natural Resources within 30 days of the transfer, trade or sale of a documented vessel with principal operation in Maryland. For vessels purchased outside of Maryland, tax is due within 30 days of the date upon which the possession within the state became subject to the tax.
Generally, tax is due when a vessel is principally operated in Maryland. Upon initial application for documented use decals, a vessel owner must provide evidence that Maryland vessel excise tax was paid at the time of purchase or pay the appropriate tax (plus penalty and interest, when applicable). In addition, a copy of the official documentation papers issued in the owner’s name and evidence of the purchase price is required as part of the initial application for documented use decals.
REPORT OF SALE OF VESSELS
Numbered and Documented Vessels
The Department of Natural Resources must be notified within 15 days when a vessel is sold, traded or transferred. The report of sale should include the name and address of the new owner(s) and the date and amount of the sale.