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Old 14-01-2019, 09:27   #46
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Re: Florida Use tax on USCG Documented boat purchased outside the US

So, if someone could answer this question to my last post regarding New England resident purchasing a documented vessel in Georgia or outside Florida waters but not in foreign waters, registered in Delaware under LLC and then coming into Florida. Does anyone know if there is a grace period? And how long the boat can be in Florida before use tacks triggers. Very confusing and apparently ambiguous law and answers.
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Old 14-01-2019, 10:11   #47
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Re: Florida Use tax on USCG Documented boat purchased outside the US

Not sure why so many find this so confusing. The answers are all summarized here...
http://dor.myflorida.com/dor/forms/current/gt800005.pdf


If you want to read the actual laws, they are here...
Statutes & Constitution :View Statutes : Online Sunshine


If you register your boat in Delaware then you have a 90 day grace period after bringing it to Florida, before you must register it and pay use tax. If you have paid any sales/use tax to other U.S. jurisdictions, then you get credit for that. If you have owned and used the boat outside of Florida for more than 6 months before bringing it here, then you are exempt from any use tax.
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Old 14-01-2019, 10:25   #48
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Re: Florida Use tax on USCG Documented boat purchased outside the US

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Originally Posted by RobPatterson View Post
I expect there are ways to use a boat without owning it. I have seen many ads that say "LLC owned"...
Many large boats are owned by a business or other partnership for tax reasons. Someone still has to pay the registration and use taxes. The difference is that the "partnership" can generate deductions to offset tax on other income.
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Old 14-01-2019, 10:26   #49
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Re: Florida Use tax on USCG Documented boat purchased outside the US

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Originally Posted by swpalmer1 View Post
So, if someone could answer this question to my last post regarding New England resident purchasing a documented vessel in Georgia or outside Florida waters but not in foreign waters, registered in Delaware under LLC and then coming into Florida. Does anyone know if there is a grace period? And how long the boat can be in Florida before use tacks triggers. Very confusing and apparently ambiguous law and answers.
When is Tax Due?
Unless exempt, a boat must be titled or registered in Florida with any county tax collector, licensed
private tag agency, or the Department of Highway Safety and Motor Vehicles:
• Within 30 days of the purchase date or the date the boat entered Florida; or
• Within 90 days after the boat enters Florida, when the boat is documented, licensed,
titled, or registered in another state.
Florida use tax, plus any applicable discretionary sales surtax, due on a boat purchased in Florida or
brought into Florida within six (6) months of the date of purchase, is paid at the time of licensing,
titling, or registering the boat in Florida.

http://floridarevenue.com/Forms_libr...t/gt800005.pdf
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Old 14-01-2019, 11:17   #50
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Re: Florida Use tax on USCG Documented boat purchased outside the US

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Originally Posted by swpalmer1 View Post
How about a documented private sale closing in legal US customs territorial waters outside of Florida state waters and then returning to Florida for 2 months.
Legal or no.
If closing the sale in another state then sales / use tax laws of such state apply.
And registration laws in the state of Florida would apply when moved to Florida
When is Tax Due?
Unless exempt, a boat must be titled or registered in Florida with any county tax collector, licensed
private tag agency, or the Department of Highway Safety and Motor Vehicles:
• Within 30 days of the purchase date or the date the boat entered Florida; or
• Within 90 days after the boat enters Florida, when the boat is documented, licensed,
titled, or registered in another state.
Florida use tax, plus any applicable discretionary sales surtax, due on a boat purchased in Florida or
brought into Florida within six (6) months of the date of purchase, is paid at the time of licensing,
titling, or registering the boat in Florida.
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Old 14-01-2019, 11:37   #51
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Re: Florida Use tax on USCG Documented boat purchased outside the US

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Originally Posted by RobPatterson View Post
I expect there are ways to use a boat without owning it. I have seen many ads that say "LLC owned"...
Just as there many ways to own a boat and never use it.
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Old 14-01-2019, 11:41   #52
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Re: Florida Use tax on USCG Documented boat purchased outside the US

Quote:
Originally Posted by swpalmer1 View Post
So, if someone could answer this question to my last post regarding New England resident purchasing a documented vessel in Georgia or outside Florida waters but not in foreign waters, registered in Delaware under LLC and then coming into Florida. Does anyone know if there is a grace period? And how long the boat can be in Florida before use tacks triggers. Very confusing and apparently ambiguous law and answers.
-My info is a bit dated but;
-I took title of a boat in the US Virgin Islands, Documented the boat through a US service. Returned it to Florida, put the boat for sale (in the water) for almost 1.5 years in Florida. Never registered in Florida and was never asked.
-I also bought a boat in Florida and was given 90 days grace period as told to me by the broker. That doesn't jive with some answers above, so I dont know if things changed ... or what.
- I bought a boat in Annapolis and traveled to Florida and stayed there 90 days with no issues, living aboard on the water.

In the states I'm aware of, you are not required to register your boat every year... if you don't use it on the water. In other words, if you don't go out on the boat for say 3 years, to register you just pay the current year when you decide to return to the water.. you dont have to catch up. I doubt this applies to all states though.
In the past, boats on the hard were not asked to comply (as they dont want to discourage having your work done in Florida.) ??
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Old 15-01-2019, 04:45   #53
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Re: Florida Use tax on USCG Documented boat purchased outside the US

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Originally Posted by Dooglas View Post
Many large boats are owned by a business or other partnership for tax reasons. Someone still has to pay the registration and use taxes. The difference is that the "partnership" can generate deductions to offset tax on other income.
For sales tax, the boat is not sold, the stock in the corporation is sold but securities are exempt from sales tax (everywhere I checked). The key is to not buy a boat.

The question becomes one of residency.
For example, a Delaware corporation is not a resident of Florida. Registration of a USCG documented vessel when it is visiting a state away from home would be strange.

Some places may want to collect taxes on boats that are present even if the owner is not a local resident. I believe Los Angeles county, California wants to tax boats as real property if the boat is simply present.
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Old 15-01-2019, 04:50   #54
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Re: Florida Use tax on USCG Documented boat purchased outside the US

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Originally Posted by Empty Pockets View Post
I expect legally all that means is that the LLC owes the sales/use tax?
If the boat is owned by the LLC and the LLC changes ownership, the boat isn't sold. I don't think there is a sales tax on securities.
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Old 15-01-2019, 05:18   #55
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Re: Florida Use tax on USCG Documented boat purchased outside the US

In fairness, FL has no income tax. Yet there are still roads, bridges and schools. They look to capture these "use" taxes
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Old 15-01-2019, 08:53   #56
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Re: Florida Use tax on USCG Documented boat purchased outside the US

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Originally Posted by RobPatterson View Post
Registration of a USCG documented vessel when it is visiting a state away from home would be strange.
Visiting a short time yes. That's what grace periods are for.

All (I think?) property taxes are assessed on location of the property not legal domicile of the owner.

But the sales tax topic is different
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Old 15-01-2019, 09:43   #57
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Re: Florida Use tax on USCG Documented boat purchased outside the US

Quote:
Originally Posted by RobPatterson View Post
For sales tax, the boat is not sold, the stock in the corporation is sold but securities are exempt from sales tax (everywhere I checked). The key is to not buy a boat.
The people who formed the partnership (or S-Corp, or LLC) bought the boat (through the partnership) and paid sales tax on the purchase. if they take in another partner later, i.e. you join the partnership, that does not trigger a sales tax event but the partners will certainly base your share on how much it cost them to acquire the boat.

Quote:
Originally Posted by RobPatterson View Post
The question becomes one of residency.
For example, a Delaware corporation is not a resident of Florida. Registration of a USCG documented vessel when it is visiting a state away from home would be strange.
You may wish to check the rules of the state in question before you say that.

Quote:
Originally Posted by RobPatterson View Post
Some places may want to collect taxes on boats that are present even if the owner is not a local resident. I believe Los Angeles county, California wants to tax boats as real property if the boat is simply present.
Quite a few places will want to collect taxes on boats kept in their jurisdiction, even if you are not a resident. The State of Washington expects boats kept in Washington to be registered in the State and to have paid Washington sales tax or in-lieu tax.
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Old 15-01-2019, 10:28   #58
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Re: Florida Use tax on USCG Documented boat purchased outside the US

My experience with Florida taxes is that they are quite helpful if you are honestly trying to follow the rules but they really do want you to follow their rules. I bought a boat in Florida and had 30 days to get it out of Florida to avoid their tax. I documented it with the CG and kept it in Georgia for 6 months (proven by dockage and diesel receipts). My understanding was that Georgia or any other state would count for the 6 months but other countries (e.g. the Bahamas) would not. After thge 6 months had passed I then could go back to Florida but only for 3 months before owing taxes.

The Florida Dept. of Revenue was quite good about all of this. Also, boat brokers in FL usually know all about these rules. I suspect that if the OP had a dockage or diesel receipt from SC dated 6 months before arrival in FL they would be OK, at least for 3 months. If you really are moving to FL then the best thing is to pay their tax and follow their rules. It is all about the physical location of THE BOAT. It is not about where YOU are or what your legal address or hailing port is.
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Old 15-01-2019, 12:39   #59
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Re: Florida Use tax on USCG Documented boat purchased outside the US

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Originally Posted by sck5 View Post
My experience with Florida taxes is that they are quite helpful if you are honestly trying to follow the rules but they really do want you to follow their rules. I bought a boat in Florida and had 30 days to get it out of Florida to avoid their tax. I documented it with the CG and kept it in Georgia for 6 months (proven by dockage and diesel receipts). My understanding was that Georgia or any other state would count for the 6 months but other countries (e.g. the Bahamas) would not. After thge 6 months had passed I then could go back to Florida but only for 3 months before owing taxes.

The Florida Dept. of Revenue was quite good about all of this. Also, boat brokers in FL usually know all about these rules. I suspect that if the OP had a dockage or diesel receipt from SC dated 6 months before arrival in FL they would be OK, at least for 3 months. If you really are moving to FL then the best thing is to pay their tax and follow their rules. It is all about the physical location of THE BOAT. It is not about where YOU are or what your legal address or hailing port is.
Thanks for the explanation of the 6 months out. Others have implied that would get you out of paying use tax, but your explanation is more reasonable. It just resets the 90-day grace period. If you stay in Fla you will owe use tax a some point.
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Old 16-01-2019, 05:05   #60
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Re: Florida Use tax on USCG Documented boat purchased outside the US

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Thanks for the explanation of the 6 months out. Others have implied that would get you out of paying use tax, but your explanation is more reasonable. It just resets the 90-day grace period. If you stay in Fla you will owe use tax a some point.
No, that is not right. Follow the links in my post #47 up above.


If you own and use your boat in another jurisdiction of the United States, for a period of 6 months or more, then you are EXEMPT from paying use tax when you bring the boat to Florida. You will still have to register it, but you will NOT owe use tax.
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