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Old 26-06-2017, 06:30   #1
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Sales tax on catamaran purchase in Florida

I'm making an offer on a catamaran in Florida is it possible to register the boat in Delaware to avoid sales tax
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Old 26-06-2017, 07:11   #2
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Re: Sales tax on catamaran purchase in Florida

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I'm making an offer on a catamaran in Florida is it possible to register the boat in Delaware to avoid sales tax
Yeah, you have 90 days to get the boat out of Florida, then you pay no sales tax.
If you plan to keep the boat in Florida and not pay the Florida sales tax however, that could be a problem, Delaware or not.
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Old 26-06-2017, 17:46   #3
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Re: Sales tax on catamaran purchase in Florida

I did this a few years ago. The broker got me a special sticker from the FL revenue department which meant I had 90 days to get out of Florida after which I had to send them proof that the boat was out of the state (i.e. dockage receipts from another state). It all worked just like it was supposed to but the broker warned me to be very careful to follow the rules. Another thing is you then have to stay out of FL for at least 6 months.
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Old 26-06-2017, 18:46   #4
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Re: Sales tax on catamaran purchase in Florida

The first two responses are good information. Keep in mind that you will need some legit connection to Delaware or some tax collector may come after you. First thing the tax peeps ask is where is your home of record. That is the state that expects you to pay sales tax. I understand that Delaware is a tax haven for boats, but so do all the tax collectors. If you take the boat out of Florida then Georgia or Alabama, or wherever you wind up will likely be looking to tax you. There is some truth to the old saying "the only sure things are death and taxes".
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Old 27-06-2017, 05:04   #5
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Re: Sales tax on catamaran purchase in Florida

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There is some truth to the old saying "the only sure things are death and taxes".
A bit of a tangent, but...

I love the movie "Meet Joe Black." The entire film is an elaborate setup for the joke at the end... "Death and taxes."
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Old 27-06-2017, 07:16   #6
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Re: Sales tax on catamaran purchase in Florida

Staying out of Florida for six months would be a deal-breaker, I am now thinking of registering the boat offshore, does anyone have any experience with that
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Old 27-06-2017, 07:28   #7
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Re: Sales tax on catamaran purchase in Florida

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Staying out of Florida for six months would be a deal-breaker, I am now thinking of registering the boat offshore, does anyone have any experience with that
Well, that gives you another set of rules to follow, including regularly leaving the state with the boat.

This isn't just pick a place, any place. If you're in FL and using the boat in FL, then you'll have to inconvenience yourself considerably to avoid Florida sales tax. Going offshore will require some expenditures initially and then regularly for both setting up the legal entity and for documentation. I have no idea what price boat you're purchasing, but ultimately putting a lot of work into trying to avoid FL sales tax is time consuming, complex, and can be expensive.
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Old 27-06-2017, 08:34   #8
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Re: Sales tax on catamaran purchase in Florida

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The first two responses are good information. Keep in mind that you will need some legit connection to Delaware or some tax collector may come after you. First thing the tax peeps ask is where is your home of record. That is the state that expects you to pay sales tax. I understand that Delaware is a tax haven for boats, but so do all the tax collectors. If you take the boat out of Florida then Georgia or Alabama, or wherever you wind up will likely be looking to tax you. There is some truth to the old saying "the only sure things are death and taxes".
Apologies as I mean this in the nicest possible way, however there is much incorrect information here.

Taxes are paid where the boat is registered, not where you live. Registration requirements vary by state, but typically all have requirements that the vessel be registered if boating in that state for a specified number of consecutive days.

Florida = 90 days
Deleware = 60 days.

Once you've paid taxes to the initial state of registration, no other state will levy a sales tax. Now they may have a 'use tax'. If so, I would make a point not to remain in that state beyond the number of days requiring the boat be registered.

The only connection to that state is that the boat be in the state's waters for more than the defined days.

I've never registered the boat in the state I live in because that is not where the boat is stored. The state you live in has nothing to do with the taxes.
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Old 27-06-2017, 08:44   #9
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Re: Sales tax on catamaran purchase in Florida

How much money are you saving on 7 % tax . Than keeping it in fla while regerestered in another state is fine but you have to move the boat every so often out of Florida and be able to prove it !
Just pay the tax. Its to much hassle always looking over your shoulder
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Old 27-06-2017, 08:51   #10
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Re: Sales tax on catamaran purchase in Florida

And in Florida you can use the state sales taxes against your federal taxes. I guess how much benefit you get would depend on your financial situation.
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Old 27-06-2017, 08:59   #11
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Re: Sales tax on catamaran purchase in Florida

Here is what I learned buying a boat, confirmed by reading the regulations on the state websites AND by phone calls to the FL sales tax offices (FL Dept of Revenue) and the FL boat registration offices (FL FWC) in Tallahassee.

If you buy a boat in Florida and it stays in FL for 90 days then the state of FL, if they catch you, will demand you pay sales tax or show proof that you paid sales tax in another state. Period.

Doesn't matter whether you register the boat in Delaware or Wisconsin or France. Doesn't matter where you live. Doesn't even matter if you are not a US citizen, If the boat stays in Florida they will want the sales tax.

There are temporary exemptions for a boat that is in a yard being repaired. But once the work is done you have to leave the state.
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Old 27-06-2017, 09:06   #12
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Re: Sales tax on catamaran purchase in Florida

i Did this (bought FL boat, moved it to RI and Back to FL) via RI there was no Tax(RI is no boot tax state) all the while I lived in VT, no ties to RI and no fuss in RI either.
BUT boat physically MUST leave FL in 90 days. There is a pass if it breaks down mechanically) All you gotta do is get to GA fuel up and send it receipt as proof you left FL and YES there is more to it but that's the essence of it.

If boat doesn't leave FL, they'll get you to pay the tax because in FL the boat has to be registered somewhere but that is only good for a few months if it is NOT FL registration.
i.e. ideally boat goes to DE stays there a year and comes back to FL and now is registered in FL but no tax. PS Being documented or foreign reg does NOT alter this situation.

Of course YOUR state has to have a lower Tax than FL or none at all i.e DE or RI DE is the big deal if you make it corporate reg, RI is just fine but ya gotta get her there and touch land as it were! Sorta like wet foot , dry foot!

It is a PIA but then again a trip up the ICW is fun, as is sailing offshore (I did it both ways)
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Old 27-06-2017, 09:27   #13
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Re: Sales tax on catamaran purchase in Florida

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...ideally boat goes to DE stays there a year and comes back to FL and now is registered in FL but no tax.
Note that the boat cannot just "stay" in some other state. The Florida authorities are quite well acquainted with the dodge of moving the boat out of Florida, letting it sit for the requisite six months, and then bringing it back.

The law in Florida says that the boat must be owned, AND USED, outside of Florida for more than six months in order avoid the sales/use tax. Cases have gone to court, and people have been required to provide evidence that the boat had been USED. That is, pump-out receipts, fuel receipts, or some other sort of evidence that the boat was being used, and not just stored out of Florida in an attempt to avoid the tax.

Have to agree with other comments here. Pay the tax. It really is not that much in the grand scheme of things. Making the boat practically useless for some period of time, just to avoid the tax, seems a bit silly to me. Buy the boat and enjoy it.

Good luck, whatever you do.
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Old 27-06-2017, 09:43   #14
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Re: Sales tax on catamaran purchase in Florida

There is a very old story about a parking ticket that goes on and on and ends "so pay the $2.00". These sales tax threads are along the same lines. The 7% tax is not a deal breaker when buying, especially under existing law that makes it deductible. Yes, there are many avoidance schemes which generally include an unstated disclaimer, don't get caught. There are folks in every sales tax state who spend hours blocking potential loopholes.
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Old 27-06-2017, 09:49   #15
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Re: Sales tax on catamaran purchase in Florida

I also believe that if you vessel is registered in another state and remains in Fl for more than 90 days, you are required to register in Florida ( and pay the tax , or difference in tax if the other state has a lower rate) or leave.
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