Quote:
Originally Posted by Northbound44
Good article on this subject: boating in Florida
Some facts to reminds:
Use tax
Use tax and surtax are not due on boats brought to Florida if you meet all of the following conditions:
• You own the boat six months or longer, and
• You have shown no intent to use the boat in Florida at or before the time of purchase, and
• The boat has been in use six months or longer within the taxing jurisdiction of another state, U.S. territory, or the District of Columbia. Time spent in foreign waters does not count as part of the six-month period.
«*Some states, like Florida, require you to state register your boat even if it is also documented. Needless to say, this generates some fairly significant fees for the state and the counties that issue the paperwork. By federal law documented boats that are also state registered are not required to show the numbers on the bow, but they are required to display the registration sticker in the location on the bow just as with a state-registered boat.*» |
Thank you Nofrthbound for the reference article.
I wish the article would have provided citation to Florida's Chapter 212 language specific to the sales / use taxation. I can not find anything in the code that mentions the language highlighted as:
The boat has been in use six months or longer within the taxing jurisdiction of another state, U.S. territory, or the District of Columbia. Time spent in foreign waters does not count as part of the six-month period.
I have copied a portion of what appears to be relevant Florida Sales and Use taxation code:
F.S. 2014 TAX ON SALES, USE, AND OTHER TRANSACTIONS Ch. 212
Reference link:
https://revenuelaw.floridarevenue.co...tax%20boats%22
Beginning at page 2217:
212.05 Sales, storage, use tax.—It is hereby
declared to be the legislative intent that every person
is exercising a taxable
privilege who engages in the
business of selling tangible personal property at retail in
this state, including the business of making mail order
sales, or who rents or furnishes any of the things or
services taxable under this chapter,
or who stores for
use or consumption in this state any item or article of
tangible personal property as defined herein and who
leases or rents such property within the state.
(1) For the exercise of such privilege, a tax is levied
on each taxable transaction or incident, which tax is due
and payable as follows:
. . .
Continuing at Page 2225
(d)1. The user of any aircraft or boat of a class or
type which is required to be registered, licensed, titled,
or documented in this state or by the United States
Government imported into the county for use,
consumption, distribution, or
storage to be used or consumed in the county is located in the county.
Statutory language that basically states that a boat or aircraft which is required to be registered, licensed, titled, or documented in Florida [or by the US Government] is in the county for use, consumption, distribution or storage IS LOCATED in the county for taxation purposes. This means that a boat that is not required to be registered, licensed, titled or documented in Florida [or by the US Government] is not taxable in a Florida county. When the boat becomes required to be registered, licensed, titled or documented in Florida [or by the US Government] is becomes an item subject to privilege tax as to use or sale, but NOT until such required moment.
2.
However, it shall be presumed that such items
used outside the county for 6 months or longer before
being imported into the county were not purchased for
use in the county, except as provided in s. 212.06(8)(b).
Statutory language that excludes items as being not purchased for use in the county if the items was used outside the county before the item was imported into the county. The statutory language does not specify anything about for what reason such items are used outside the county, or place any restrictions or requirements of where such items are outside the county; the items just need to be used outside the county for six months before being imported into the county for use, consumption, distribution, or storage.
And continuing further from page 2225 of the document reference linked above:
(3) For the purpose of this section, a transaction
shall be deemed to have occurred in a county imposing
the surtax when:
. . .
2.
However, it shall be presumed that such items
used outside the taxing county for 6 months or longer
before being imported into the county were not purchased for use in the county.
. . .
(i) The delivery of any aircraft or boat of a class or
type which is required to be registered, licensed, titled,
or documented in this state or by the United States
Government is to a location in the county. However, this
paragraph does not apply to the use or consumption of
items upon which a like tax of equal or greater amount
has been lawfully imposed and paid outside the county.
. . .
(k) The delivery of tangible personal property other
than that described in paragraph (d), paragraph (e), or
paragraph (f) is made to a location outside the county,
but the property is brought into the county within 6
months after delivery, in which event, the owner must
pay the surtax as a use tax
And continuing further from page 2240 of the document reference linked above:
(6) It is however, the intention of this chapter to levy
a tax on the sale at retail, the use, the consumption, the
distribution, and the storage to be used or consumed in
this state of tangible personal property after it has come
to rest in this state and has become a part of the mass
property of this state.
(7) The provisions of this chapter do not apply in
respect to the use or consumption of tangible personal
property or services, or distribution or storage of
tangible personal property for use or consumption in
this state, upon which a like tax equal to or greater than
the amount imposed by this chapter has been lawfully
imposed and paid in another state, territory of the United
States, or the District of Columbia. The proof of payment
of such tax shall be made according to rules and
regulations of the department. If the amount of tax paid
in another state, territory of the United States, or the
District of Columbia is not equal to or greater than the
amount of tax imposed by this chapter, then the dealer
shall pay to the department an amount sufficient to
make the tax paid in the other state, territory of the
United States, or the District of Columbia and in this
state equal to the amount imposed by this chapter.
(8)(a) Use tax will apply and be due on tangible
personal property imported or caused to be imported
into this state for use, consumption, distribution, or
storage to be used or consumed in this state; provided,
however, that, except as provided in paragraph (b), it
shall be presumed that tangible personal property used
in another state, territory of the United States, or the
District of Columbia for 6 months or longer before being
imported into this state was not purchased for use in this
state. The rental or
lease of tangible personal property
which is used or stored in this state shall be taxable
without regard to its prior use or tax paid on purchase
outside this state.
Paragraph (b), below, I perceive to apply to fishing guide boats.
(b) The presumption that tangible personal property
used in another state, territory of the United States, or
the District of Columbia for 6 months or longer before
being imported into this state was not purchased for use
in this state does not apply to any boat for which a
saltwater
fishing license fee is required to be paid
pursuant to s. 379.354(7), either directly or indirectly, for
the purpose of taking, attempting to take, or possessing
any saltwater
fish for noncommercial purposes. Use tax
shall apply and be due on such a boat as provided in this
paragraph, and proof of payment of such tax must be
presented prior to the first such licensure of the boat,
registration of the boat pursuant to chapter 328, and
titling of the boat pursuant to chapter 328. A boat that is
first licensed within 1 year after purchase shall be
subject to use tax on the full amount of the purchase
price; a boat that is first licensed in the second year after
purchase shall be subject to use tax on 90 percent of the
purchase
price; a boat that is first licensed in the third
year after purchase shall be subject to use tax on 80
percent of the purchase price; a boat that is first licensed
in the fourth year after purchase shall be subject to use
tax on 70 percent of the purchase price; a boat that is
first licensed in the fifth year after purchase shall be
subject to use tax on 60 percent of the purchase price;
and a boat that is first licensed in the sixth year after
purchase, or later, shall be subject to use tax on 50
percent of the purchase price. If the purchaser fails to
provide the purchase invoice on such boat, the fair
market value of the boat at the time of importation into
this state shall be used to compute the tax.
And continuing further from page 2241 of the document reference linked above:
(12) In lieu of any other facts which may indicate
commingling, any boat which remains in this state for
more than an aggregate of 183 days in any 1-year
period, except as provided in subsection (8) or s.
212.08(7)(t), shall be presumed to be commingled
with the general mass of property of this state.
And continuing further from page 2261 of the document reference linked above:
Boats that are temporarily docked in state at a registered facility are subject to exemption from state sales or use tax under these terms:
(t)
Boats temporarily docked in state.—
1. Notwithstanding the provisions of chapter 328,
pertaining to the registration of vessels,
a boat upon
which the state sales or use tax has not been paid is
exempt from the use tax under this chapter if it enters
and remains in this state for a period not to exceed a
total of 20 days in any calendar year calculated from the
date of first dockage or slippage at a facility, registered
with the department, that rents dockage or slippage
space in this state. If a boat brought into this state for
use under this paragraph is placed in a facility,
registered with the department, for repairs, alterations,
refitting, or modifications and such repairs, alterations,
refitting, or modifications are supported by written
documentation, the 20-day period shall be tolled during
the time the boat is physically in the care, custody, and
control of the
repair facility, including the time spent on
sea trials conducted by the facility. The 20-day time
period may be tolled only once within a calendar year
when a boat is placed for the first time that year in the
physical care, custody, and control of a registered
repair
facility; however, the owner may request and the
department may grant an additional tolling of the 20-
day period for purposes of repairs that arise from a
written guarantee given by the registered repair facility,
which guarantee covers only those repairs or modifications made during the first tolled period. Within 72 hours
after the date upon which the registered repair facility
took possession of the boat, the facility must have in its
possession, on forms prescribed by the department, an
affidavit which states that the boat is under its care,
custody, and control and that the owner does not use
the boat while in the facility. Upon completion of the
repairs, alterations, refitting, or modifications, the registered repair facility must, within 72 hours after the date
of release, have in its possession a copy of the release
form which shows the date of release and any other
information the department requires. The repair facility
shall maintain a log that documents all alterations,
additions, repairs, and sea trials during the time the boat
is under the care, custody, and control of the facility. The
affidavit shall be maintained by the registered repair
facility as part of its records for as long as required by s.
213.35. When, within 6 months after the date of its
purchase, a boat is brought into this state under this
paragraph, the 6-month period provided in s.
212.05(1)(a)2. or s. 212.06(8) shall be tolled.
2. During the period of repairs, alterations, refitting,
or modifications and during the 20-day period referred to
in subparagraph 1., the boat may be listed
for sale,
contracted
for sale, or sold exclusively by a
broker or
dealer registered with the department without incurring
a use tax under this chapter; however, the sales tax
levied under this chapter applies to such sale.
3. The mere storage of a boat at a registered repair
facility does not qualify as a tax-exempt use in this state.
4. As used in this paragraph, “registered repair
facility” means:
a. A full-service facility that:
(I) Is located on a navigable body of
water;
(II) Has haulout capability such as a dry
dock, travel
lift, railway, or similar
equipment to
service craft under
the care, custody, and control of the facility;
(III) Has adequate piers and storage facilities to
provide safe berthing of vessels in its care, custody, and
control; and
(IV) Has necessary shops and
equipment to provide
repair or warranty
work on vessels under the care,
custody, and control of the facility;
b. A marina that:
(I) Is located on a navigable body of
water;
(II) Has adequate piers and storage facilities to
provide safe berthing of vessels in its care, custody, and
control; and
(III) Has necessary shops and equipment to provide
repairs or warranty
work on vessels; or
c. A shoreside facility that:
(I) Is located on a navigable body of water;
(II) Has adequate piers and storage facilities to
provide safe berthing of vessels in its care, custody, and
control; and
(III) Has necessary shops and equipment to provide
repairs or warranty work.
Does anyone have other citations or interpretations, that they could share with us all?
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