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Old 10-04-2016, 00:18   #1
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Florida license question

Florida licensing regulations require use tax to be paid when a boat is acquired as an "occasional" sale, ie. between private parties and not using a broker. On the upside, the use tax is only payable on the hull and trailer, not the rest of the stuff. The tax person told me they would accept a "reasonable" estimate of the value of the hull as part of a fully equipped vessel.

So my question is - what would be considered reasonable, and how would I calculate that in a way I could defend if necessary? $60K for the hull on a $100K boat? Engine alone is $10K, mast and sails $20K, instruments at least $10K, before counting dinghy, outboard, solar panels, davits, radios, etc.

Anyone who has successfully navigated this recently?
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Old 10-04-2016, 03:27   #2
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Re: Florida license question

What is the age of the boat?
With an older boat they don't seem to care.
I have used 10% in the past.
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Old 10-04-2016, 06:53   #3
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Re: Florida license question

Picked up our '78 Lancer 30 last year and I don't recall any such questions from the county tax man. The title fee was $4.00, plus sales tax, and a $3.75 "agency fee".

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Old 10-04-2016, 12:37   #4
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Re: Florida license question

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Originally Posted by CSY Man View Post
What is the age of the boat?
With an older boat they don't seem to care.
I have used 10% in the past.
Late 90's.
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Old 10-04-2016, 12:39   #5
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Re: Florida license question

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Originally Posted by Rock-Head View Post
Picked up our '78 Lancer 30 last year and I don't recall any such questions from the county tax man. The title fee was $4.00, plus sales tax, and a $3.75 "agency fee".

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Was your vessel already licensed in Florida? The one I'm buying isn't.
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Old 10-04-2016, 13:41   #6
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Re: Florida license question

Are you confusing "use " tax with "sales "tax ?
Sales tax in Florida is paid on the value of all titled vessels or autos , trailer . If it has a title , tag or document it is sales taxable . There is no tax due on " personal property ".
I once paid $100,000 for a dive boat that came with 29 sets of dive gear and a dive compressor with large storage tanks . The boat we valued at $60,000 and the personal prop at $40K. The SALES tax is due if by broker or private treaty . I believe whomever told you that you could exempt the motor [ drive train ] and rig and such is way wrong .It is kinda like the question in a house sale , what is real estate and what is personal .
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Old 10-04-2016, 13:47   #7
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Re: Florida license question

To continue , if for example , you bought a sail boat for X amount , it is all taxable , then the seller sez " I also have two brand new sets of sails , an inflatable dingy and motor that I would like to sell you ", That you could avoid the tax on , probably . It is quite common in commercial boats to sell equipment , licences , maybe even the topside rigs at separate sale as personal property .
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Old 10-04-2016, 13:49   #8
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Re: Florida license question

Continue , it is common in boat sales to call the boat a HULL or BOTTOM , that usually means the whole darn boat !
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Old 10-04-2016, 21:02   #9
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Re: Florida license question

Quote:
Originally Posted by Scatterling View Post
Florida licensing regulations require use tax to be paid when a boat is acquired as an "occasional" sale, ie. between private parties and not using a broker. On the upside, the use tax is only payable on the hull and trailer, not the rest of the stuff. The tax person told me they would accept a "reasonable" estimate of the value of the hull as part of a fully equipped vessel.

So my question is - what would be considered reasonable, and how would I calculate that in a way I could defend if necessary? $60K for the hull on a $100K boat? Engine alone is $10K, mast and sails $20K, instruments at least $10K, before counting dinghy, outboard, solar panels, davits, radios, etc.

Anyone who has successfully navigated this recently?
Try a low but still substantial number: say $26783 (don't use whole numbers)for a boat you paid 100k for. Its up to the clerk at the desk and frankly they have no idea. As for them asking for a bill of sale -have a USCG Bill of Sale form ready with your desired number or simply '1$ and other consideration'. To show-not to give them. Good Luck!
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Old 11-04-2016, 06:51   #10
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Re: Florida license question

I bought a small daysailer a couple of years ago. Paid $900 in total. The bill of sale said $300 for the trailer, $300 for the motor, $200 for the boat, and $100 for sails and other incidentals. The folks at the DMV never batted an eye, and charged me sales tax on $500 (the boat and trailer).

The worst that can happen is that they challenge your numbers, and you have to justify how you came up with them. Personally, I would not list the vessel as more than half the total price. Itemize these things in the bill of sale and now you have both yourself and the seller agreeing on the value, which I think makes it harder for the DMV folks to challenge.
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Old 11-04-2016, 06:55   #11
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Re: Florida license question

my son wanted to buy my boat, since he wanted to make payments we transferred the title as "gift"

Quote:
Originally Posted by Scatterling View Post
Florida licensing regulations require use tax to be paid when a boat is acquired as an "occasional" sale, ie. between private parties and not using a broker. On the upside, the use tax is only payable on the hull and trailer, not the rest of the stuff. The tax person told me they would accept a "reasonable" estimate of the value of the hull as part of a fully equipped vessel.

So my question is - what would be considered reasonable, and how would I calculate that in a way I could defend if necessary? $60K for the hull on a $100K boat? Engine alone is $10K, mast and sails $20K, instruments at least $10K, before counting dinghy, outboard, solar panels, davits, radios, etc.

Anyone who has successfully navigated this recently?
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Old 11-04-2016, 18:54   #12
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Re: Florida license question

[QUOTE=Perstarebob;2094196]...Are you confusing "use " tax with "sales "tax ?...QUOTE]

No. I'm quoting from the "Sales and Use tax on boats", doc number GT-800005 issued by the Florida Dept of Revenue. It says "...when a boat is sold by someone other than a registered boat dealer or a boat is brought into Florida for use in Florida, Florida use tax is due". Florida's use tax is 6%. The info regarding dividing up the total bill into components was given to be verbally by the FL DMV.
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Old 11-04-2016, 19:40   #13
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Re: Florida license question

And different counties add on their own use tax, at different rates. Always surprises people.
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Old 14-04-2016, 16:13   #14
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Re: Florida license question

It's the same when transferring a title from a car or motorcycle in FL. If the boat is USCG documented, then there is no title. Otherwise you are stuck with title expense on top of registration and tax. The bill of sale governs the value. I've never heard of this being challenged as boats can be in various conditions.


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Old 15-04-2016, 09:13   #15
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Re: Florida license question

CAN i get my no title dinghy USCG documented.
Thanks! AND do other countrys care of your dink
is registerd. AND if the dink is registerd are they able
look up if it matching boat length, ect. Thanks


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It's the same when transferring a title from a car or motorcycle in FL. If the boat is USCG documented, then there is no title. Otherwise you are stuck with title expense on top of registration and tax. The bill of sale governs the value. I've never heard of this being challenged as boats can be in various conditions.


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