How to participate in auctions?
What types of vessels are available?
Only the Vessel(s) indicated here are being auctioned at this time.
Are there registration fees?
There are no registration fees to participate in our vessel auctions.. At the time of re-documentation there will be transfer fees via the documentation agency. These fees usually don't exeed $ 750.00.
How are bids placed?
Bidding is done in a live auction setting. No online bidding is accepted at this time.. Only Bidders with a bid number may bid at the auction.Prior to obtaining a bidder's number you must show a representative of the court that you have a valid deposit to ensure that you have the capability to bid. Our auctions are totally transparent and if a bidder does not have a deposit check in the amount of 10% or more it will be up to the Marshal's decision whether or not to accept their bid, In the past we have found that they will not allow that bidder to go beyond their deposit qualifications and have taken our input in regards to the winning bid.
Is financing available?
Buyers should arrange financing independently prior to the auction.. The sale proceeds must be all cash at the time designated by the courts. The auction process requires the total amount of the bid to be due at the date provided at the auction this is not the same date as the auction but this usually occurs approximately 3 days after the winning bid is accepted
What if I win the auction?
.The winning bidder will then meet with the Marshals to process the deposit check and complete paperwork. If the deposit check is greater than the 10% minimum required it will apply to the agreed upon auction price.
Can I view the vessel(s)?
An open house for inspection occurs the day before the published auction. In this auction the inspection time is 9am to Noon on September 17, 2026 On the specific day of the auction we will arrive usually an hour before the stated start of the auction. Auctions usually start at 10 AM when the Marshals arrive.
1. The Federal Framework: The Sovereign Immunity Clause
Under the Doctrine of Intergovernmental Sovereign Immunity (derived from the Supremacy Clause of the U.S. Constitution, Article VI, Clause 2), individual states cannot directly tax the federal government or its unincorporated agencies (like the U.S. Marshals Service) during the execution of their official duties.
Therefore:
The U.S. Marshal will not collect sales tax at the auction. They act as an arm of the federal court and are not "retailers" or "dealers."
2. State Law Framework: Buyer's Use Tax Liability
While the federal government cannot be taxed, the buyer can be. When you register the vessel with a state agency (like the DMV or a department of revenue) or moor it in state waters, the state may impose a use tax equivalent to their sales tax rate.
How states view U.S. Marshal sales varies, but they typically look to their own tax codes regarding "casual sales" or federal exemptions:
Exempt (e.g., California): Some states explicitly exempt court-ordered U.S. Marshal sales from use tax. For instance, in California, CDTFA Sales and Use Tax Annotation 560.0260 states that a yacht sold by a U.S. Marshal pursuant to a federal court order in an admiralty matter is considered a sale by an instrumentality of the United States. Under California Revenue and Taxation Code Section 6402, the purchaser is exempt from use tax because the purchase was made from an unincorporated agency of the U.S. Government.
Summary: Where to look?
Federal Authority: The U.S. Constitution's Supremacy Clause (Art. VI, Cl. 2) keeps the U.S. Marshals from collecting state sales tax at the time of purchase.
State Authority: Look up the Revenue and Taxation Code of the specific state where you intend to register or moor the vessel to see if they offer a use tax exemption for purchases made from "unincorporated federal agencies" or "court-ordered judicial sales."
n open house for inspection occurs the day before the published auction. In this auction the inspection time is (am to Noon on September 17, 2026On the specific day of the auction we will arrive usually an hour before the stated start of the auction. Auctions usually start at 10 AM when the Marshals arrive.
Is Sales Tax Due on a Marshal Sale
Can I have my own Surveyor survey the vessel?
Potential bidders may have a survey performed on the vessel at their expense. Arrangements must be made ahead of time for this to happen but generally it is performed of the day for open house or inspections. In some cases the survey that has been ordered as part of the arrest and custodial process may be available.
What happens on the day of the auction?
On the specific day of the auction we will arrive usually an hour before the stated start of the auction. Auctions usually start at 10 AM when the Marshals arrive. If the Marshals are ready at 10:00 the auction process will start immediately. Prior to obtaining a bidder's number you must show a representative of the court that you have a valid deposit to ensure that you have the capability to bid. Our auctions are totally transparent and if a bidder does not have a deposit check in the amount of 10% or more it will be up to the Marshal's decision whether or not to accept their bid, In the past we have found that they will not allow that bidder to go beyond their deposit qualifications and have taken our input in regards to the winning bid.
The Marshals will read a copy of the court order designating the sale of the vessel prior to the start of the auction. Representatives of Long Beach out sales monitor the auction so that there will be no confusion as to the bidding process or order of bids being We log the bids by bidder number and order if there is confusion or an unqualified bidder wins the high bid. In the event that this does happen, we will go back in the bidding sequence to BEFORE the errant bidder entered the bidding process.
The winning bidder will then meet with the Marshals to process the deposit check and complete paperwork. If the deposit check is greater than the 10% minimum required it will apply to the agreed upon auction price.