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Old 25-11-2018, 07:04   #1
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Taxes, how do they know?

So, I have a hypothetical situation regarding state taxes.

If I buy a boat in Delaware, their state tax is zero %. If I buy it there, keep it there for the requisite 90 days, then sail down to Florida and hang out in Florida for a year, the tax law states that I would need to pay the 6% sales tax to Florida.

But, how does the state know I'm there for a year? If I start off in Jacksonville for a few weeks.. Then head to St. Augustine for a few weeks Then down to West Palm, and Jupiter for a few weeks.. continue down the coast, you get the picture, right? How do they know that I'm there, and thus needing to pay the adjusted sales tax?

Additional info... I would be a live aboard, with no house on land, anywhere. However, I believe fully in doing the right thing, so, if I owe the taxes.. I would PAY the taxes. It's the right thing to do. I am just truly curious how they would know..
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Old 25-11-2018, 07:32   #2
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Re: Taxes, how do they know?

They don't, especially if you aren't in a marina.

But you should better review your number of days reqt for being in DE and the time needed not to be in Florida far as taxes and registration are concerned.
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Old 25-11-2018, 07:47   #3
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Re: Taxes, how do they know?

I thought that you had to be out of Fla for 6 months after the purchase and thereafter there are no tax consequences?
Also, I believe that know as every time you go under an opening bridge or other controlled area, they request/record the name of the vessel. Their version of eye in the sky.
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Old 25-11-2018, 08:30   #4
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Re: Taxes, how do they know?

It seems that you need to leave the vessel in Delaware for six months prior to bringing it to Florida. Or show that you paid sales tax elsewhere. After that, if you stay in Florida longer than 90 days you would be required to register the boat in FL. Of course, they will ask for a bill of sale or out of state title or CG documentation, all of which will have dates.

Someone mentioned bridge openings. The bridge tender will ask for the name of the vessel requesting an opening, that is true. But USCG documented boats are the only ones required to display a name and hailing port. If the boat is not USCG documented, you could change the name of your boat daily, no requirement to even having a name.....
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Old 25-11-2018, 08:51   #5
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Re: Taxes, how do they know?

I bought boat in FL removed it per law to RI and Registered it IN RI. Then went back to FL a year later and registered it in FL no prob, no tax. In Maine the water police check marinas regularly as ME will tax you if you stay too long no matter where boat is registered. And yesbrigdetendes do ask Boat names but inconsistently. Russ
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Old 25-11-2018, 08:55   #6
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Re: Taxes, how do they know?

I believe this will only be an issue if you ever get caught and/or need to register. If you ever register you have to attest you have either paid taxes or are exempt (the only exemption that would apply would be having owned the boat already for 6 months prior to importation). The wording on the forms is a little vague but I just stated I was exempt because I had owned the boat for longer then 6 months and they seemed to accept that. I did not have to show a bill of sale or anything but I did have it ready.
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Old 25-11-2018, 09:12   #7
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Re: Taxes, how do they know?

California, for one, requires all marinas to report on boats moored there on a certain date. The local districts use that information for a relatively minimal, for CA, property tax assessment. Wouldn't be surprised if the State somehow uses that information for sales tax purposes but would take a lot of sleuthing on their part to connect a boat sale to boat's location. They primarily rely on registration for sales tax. Federal documentation doesn't hide you from the State as they mine that information for title transfers. Many States also require State registration or notification for boats under their domain.
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Old 25-11-2018, 09:57   #8
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Re: Taxes, how do they know?

Take the time to document your boat...not very hard to do yourself, and takes about 90 days to get your documentation back (unless it is stretching a bit longer now, but even if so you can pay extra for expedited service). Florida does not require that documented boats be registered with the state, as they used to do.
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Old 25-11-2018, 09:57   #9
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Re: Taxes, how do they know?

I can't speak to sales taxes, though I bought a boat in NY and moved it to FL some years ago.

After I moved to South Carolina, however, I expected to pay property taxes, but didn't get a bill until I put the name on the transom. My boat is documented and I'm pretty sure the assessors office has folks out walking the docks and taking names.

I doubt the marina turned me in because the transom was blank for a couple of years, but the marina knew the boat's name.
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Old 25-11-2018, 10:10   #10
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Re: Taxes, how do they know?

Unless it's changed Maine generally has no sales tax on a boat owned by a non-resident that was purchased out of state and is in Maine less than 30 days for the first 12 months after it is bought.

Massachusetts is similar but the time is only six months and the boat can't come into the state for any days.

Both states have an annual property tax on boats that are primarily moored there, but it's a very small tax.

Maine Title 36 Section 1760(25)(B), - “The purchase of a watercraft outside this State is exempt if the watercraft is registered outside the State by the purchaser and used outside the State by the purchaser and the watercraft is present in the State not more than 30 days, not including any time spent in this State for temporary storage, during the 12 months following its purchase. For purposes of this paragraph, ‘used outside the State’ does not include storage but means actual use of the watercraft for a purpose consistent with its design.”
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Old 25-11-2018, 10:18   #11
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Re: Taxes, how do they know?

Vermont at one time started touring marina to guet info on moored sailboat from Canada(a lot of them). And sent taxes bills as if they where residents owners(After 30 days stay, it was presumed resident of Vermont). Some Canadanian paid the taxes, but most resisted. They formed an association and started a legal battle. Many of the owners moved their boats on the other shore of Lake Champlain, to NY state. When the Vermont marina started loosing losts of customers, the Vermont state abandonned its claims of taxes.
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Old 25-11-2018, 10:20   #12
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Re: Taxes, how do they know?

Technically, it's a use tax, after the sale... but it is the same for most practical purposes.

How do they know? They don't. What I have seen in the past (airplanes in my case - same process) a couple of States just saw my registration number sitting on a local airport ramp. Virginia billed me when I was only there for an hour getting gas, and Connecticut billed me after the airplane was in a shop for a week. These two states immediately sent me a bill for the full use tax for their state.

It was up to me, and it took several weeks before they were satisfied, to show just how long I was in the state, with proof. A simple logbook maintained by myself was insufficient for them. They wanted to see receipts with dates and addresses; I had to "Prove" I was not in their state for the 90 days or whatever it was. And prove I paid the sales tax... if I was there longer than 90 days, I would have been billed the difference between Connecticut (8% at the time?) and Arizona (where I bought it, and paid 6% sales tax, with receipt.)

Big Brother really is watching...they desperately want to dig into the pockets of "rich" people with toys like boats and airplanes.

I now keep a folding accordion and keep every BOAT receipt and just toss it in the folder.
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Old 25-11-2018, 12:27   #13
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Re: Taxes, how do they know?

Taxes generally rely on citizen honesty. The authorities generally don't look, and don't catch tax evaders very often. The chances are you'll get away with it.

I don't know about jurisdictions other than the one I live in. Here, a normal taxpayer can expect remote scrutiny about 1 year in ten. "Scrutiny" is someone actually checking your tax returns for a discrepancy, or something the doesn't make sense. Even then they miss a lot. If they do see a discrepancy they might investigate further. You won't know util it goes further - ie they form a real suspicion. -

An example or a discrepancy could be "this person is paying marina fees, boat maintenance, and bridge fees through their bank account ... so they must own a boat ... let's check back for a transaction where they bought the boat ... was tax paid?

Hard to get caught ... but when and if you are ... then you get accused of ripping off your entire wider community. That's why tax penalties are so harsh. Don't do the crime if you can't pay the penalty.

If you want to be sure of sleeping well - just pay the tax (or get a good accountant and pay them instead).
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Old 25-11-2018, 12:46   #14
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Re: Taxes, how do they know?

Quote:
Florida does not require that documented boats be registered with the state, as they used to do.
Please tell me where you got this nugget of information................
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Old 25-11-2018, 13:29   #15
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Re: Taxes, how do they know?

Don't underestimate the revenuers. I bought a boat in Maryland, had the port of call changed to Newport CA and within a year got a billing from California for sales tax. The boat had never touched the Pacific, but they argued that it was Californian. After several annoying back and forth conversations, they finally ceased harassing me.
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