Use tax question Florida

[rachelsavitt]

Hello all
So we bought our sailboat in Texas in dec2017, we live in California.
We went in a 6 month trip and then have had the boat dry stored in Indian town in Florida ever since

We never registered the boat in Florida: California is now trying to get us to pay taxes on the boat . I know we should be paying in Florida,

Now that we are overdue in Florida what advise does anyone have . Should we call Florida taxes and tell the truth and pay a lot and interest ? Can we say we recently stored the boat there ( last 90 days)

I don’t want to pay California and then have trouble in Florida

Thanks for help with our stupidity, this is our first boat

[Cheechako]

You "just returned to Fl and want to leave it and register it there now". A "person I know" called the county tax office and asked that. They said "sure just come in and see me, I'm Mrs XXX and we'll set it up". They welcome the money.

This person was not sure if a stored boat had to be registered while stored, so went that route.

However, I'm not sure a new registration in FL will get you out of CA's grasp.But it seems they should abide with storage receipts from Florida...?

[skipmac]

I have heard from several boaters that were stuck, that CA, if you are a resident or they have any other excuse, will hound you to the ends of the earth for boat tax. If you are still a CA resident you might want to go ahead and pay them.

The good news, if you are dinged for sales and use tax in FL the will credit you for the tax paid in any other state and only charge for the difference if any.

[letsgetsailing3]

If you pay in California, you'll get credit in Florida when you go to register it there.

You can also register directly in Florida, which seems more fair. Just not sure how that leaves you in California. I'd probably just register in Florida, but watch the details carefully. You don't want California hounding you to the end of the earth.

[Zzmeyer]

California is uncapped and a higher rate than Florida. Whether you are a resident of California or not, if you can prove the boat was not bought in California, nor brought to California during the first year of ownership you do not owe California sales tax I have done it three times (using an attorney as it is rather complicated although you really don't need one). You need to be careful as there are some additional rules. You need to show you cruised it outside California (not just stored it). You must also not have reserved a slip in California. Having just purchased a boat in Florida as a California resident the dealer just filed my Affidavit for Non Florida Resident which gives me 90 days to get out of the state. Given the current state of the world that may not be enough. It can be extended another 90 days for about $425 I believe. It looks to me like you owe Florida state tax.

[Montanan]

If the boat has not been nor is not located in California no tax is due in that State, just contact the county which is billing you for the property tax and discuss the situation. They may desire some proof of the vessel being located elsewhere. Your invoice from storage in Florida should suffice.

Use tax is a privilege tax based on where the good is located.

Where did you use the boat for six months after purchasing it in Texas.

Exactly how many days did you own the boat before bringing it to Florida?

Six months being a critical time period and one you will need definitive documentation thereof so as to provide proof to receive an exemption from Florida's use taxation when you go to register it. You should have registered titled or licensed it within a short period of time after bringing it to Florida, they may penalize you for your tardiness and charge a penalty to you for the delay and back period of time. That registration matter is a separate issue than the taxation issue and a lot less expensive issue.

Do Not Lie or give a false affidavit. The consequences are severe. See below.

Reference link: http://https://floridarevenue.com/Fo...t/gt800005.pdf

What is Taxable?

Sales and Use Tax

All boats sold, delivered, used, or stored in Florida are subject to Florida’s sales and use tax, plus any applicable discretionary sales surtax, unless exempt. Florida boat dealers and brokers are required to collect tax from the purchaser at the time of sale or delivery.
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. The “use” part of Florida’s sales and use tax provides
uniform taxation of items. Florida’s six percent (6%) use tax, plus any applicable discretionary sales
surtax, is due on a boat used or stored in Florida when:
• The boat is purchased from a person who is not a registered boat dealer and the sale or delivery of the boat occurs in Florida;
• The boat is purchased in another state, territory of the United States, or District of Columbia and is brought into Florida within six (6) months of the purchase date; or
• The boat is purchased in a foreign country and is brought into Florida at any time.

When the purchaser does not pay Florida sales and use tax to the seller for a boat purchase, any sales and use tax, plus any applicable discretionary sales surtax, is paid to the county tax collector, licensed private tag agency, or the Department of Highway Safety and Motor Vehicles when registering the boat in 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.

Reference the specific exemptions for non-resident owners in the link above.


Penalty and Interest

Anyone who purchases a boat and obtains a tax exemption as a nonresident purchaser is subject to Florida use tax, discretionary sales surtax, interest, and penalties (including a mandatory penalty equal to the tax) when:
• A boat that bears a decal set remains in Florida after the expiration of the decal;
• A boat that does not bear a decal set and is not in a Florida registered repair facility remains in Florida more than 10 days from the date of purchase;
• A boat that does not bear a decal set and that was in a Florida registered repair facility remains in Florida more than 20 days from the date the repairs or alterations were completed;
• A boat returns to Florida within six (6) months from the date of departure, is not placed in a Florida registered repair facility, and stays in Florida more than 20 days; or
• The nonresident purchaser does not furnish the Department with the required documentation.

A purchaser who attempts to evade tax by submitting a fraudulent affidavit is subject to the tax due, interest, and a mandatory 200 percent penalty (according to section 213.29, Florida Statutes). The purchaser is also subject to a fine of up to $5,000 and up to 5 years in prison.

Nota bene: In the future tend to your registration and taxation issues promptly.

All the best. Enjoy your boat.

[Zzmeyer]

Read the last post several times. Very annoying to find such a thorough, and as far as I can tell, accurate response on taxes on CF.

[Montanan]

FYI:

As to titling and registration of your boat [and separately of your dinghy if it is motorized].

Reference link: https://www.flhsmv.gov/motor-vehicle...registrations/

All motorized vessels operating on Florida’s public waterways must be titled and registered. Chapter 328, Florida Statutes, designates that FLHSMV is responsible for issuing vessel registrations and titles. Applications for titles and registrations must be filed at a county tax collector or license plate agent office. Owners have the option of registering their vessel for either one year or two years.

A purchaser of a new or used vessel has 30 days to title and register that vessel. During this 30 day period, the owner must have proof of the date of purchase aboard the vessel. Operating an unregistered vessel after 30 days is a second-degree misdemeanor.

Exemptions from Titling

Vessels operated, used and stored exclusively on private lakes and ponds.
Vessels owned by the U.S. Government, the State of Florida or its political subdivisions.
Non-motor-powered vessels less than 16 feet in length.
Federally documented vessels.
A vessel already covered by a registration number in full force and effect which was awarded to it pursuant to a federally approved numbering system of another state or by the United States Coast Guard in a state without a federally approved numbering system, if the vessel is not located in this state for a period of more than 90 consecutive days.
Vessels from a country other than the United States temporarily used, operated or stored on the waters of this state for a period that is not more than 90 days.
Amphibious vessels which have been issued a vehicle title by FLHSMV.
Vessels used only for demonstration, testing or sales promotional purposes by a manufacturer or dealer.

Applying for Vessel Title for In-State and Out-of-State Vessels

A vessel not exempt from titling must be titled at the same time it is registered. To issue a Florida Certificate of Title for a new or used vessel purchased in or outside of Florida, the owner of the vessel must bring the appropriate titling fee and the following documents into a tax collector or license plate agent office:

New vessel – Manufacturer’s Certificate of Origin (MCO) or its equivalent statement of builder, or if the vessel is purchased in a state that does not require an MCO, the proof of ownership is an executed dealer’s bill of sale. The proof of ownership must include a complete description of the vessel, including manufacturer’s name, year, type, hull material, propulsion, fuel, use of vessel, hull identification number and length.

Used vessel currently titled in FL – Florida title accurately completed for transfer to purchaser.

Used vessel currently titled out of state – Out-of-state title accurately completed for transfer to purchaser.

Used vessel from a state that does not require title – Current registration from that state and a bill of sale from the current registrant. Bill of sale must include complete description of the vessel including manufacturer’s name, year, type, hull material, propulsion, fuel, use of vessel, hull identification number and length.

Vessel Titling Fees

The following fees are assessed when applying for a Florida Certificate of Title in addition to registration fees and any applicable sales tax:

$5.25 titling fee (for electronic title) or $7.75 (for paper title) or $11 (expedited (fast) title).
Additional fee of $1 to record each existing lien.
Additional titling fee of $4 is required for vessels previously registered outside of the state of Florida.

Applying for Vessel Registration

Applications for vessel registration are to be filed with the county tax collector or license plate agent. When applying for registration, the owner must establish proof of ownership by submitting an executed bill of sale, a builder’s contract, a manufacturer’s statement of origin, a federal marine document or another document acceptable to the FLHSMV. If the vessel is required to be titled, the title must be issued prior to the issuance of the registration.

Exemptions from Registration

Vessels operated, used and stored exclusively on private lakes and ponds.
Vessels owned by the U.S. Government.
Vessels used exclusively as a ship’s lifeboat.
Non-motor-powered vessels less than 16 feet in length.
Non-motor-powered canoe, kayak, racing shell or rowing scull regardless of length.

Vessel Registration Fees

Section 328.72(18), Florida Statutes, provides reduced vessel registration fees for a recreational vessel equipped with an Emergency Position Indicating Radio Beacon (EPIRB) or for a recreational vessel when the owner possesses a Personal Locator Beacon (PLB).

The chart below indicates the current fee as well as the reduced fee based on the classification of the vessel if it is equipped with an EPIRB or if the owner of the vessel has a PLB. See link above for the chart.


Sales / Use Tax

If sales tax on the total purchase price of the vessel has not been paid at the time of the registration, payment must be made along with the registration and titling fees. If the sales tax has been paid, a receipt for payment must be provided to the county tax collector or license plate agent processing the title and/or registration.

If the vessel is purchased through a vessel dealer, sales tax is due on the vessel, motor (inboard or outboard), trailer and all accessories.
If the vessel is purchased though a casual sale (no dealer involved), sales tax is due on the vessel, inboard motor and trailer. An outboard motor and accessories maybe exempt from sales tax if they are separately itemized and priced on the bill of sale.

Good luck.

[S/V Illusion]

More si ply stated, tell California to go stick it - boat was neither purchased or stored/used there and pay Florida.

[Montanan]

You indicated that you purchased the boat in Texas. That could mean that you did or should have paid sales or use tax in Texas. Again there be exemptions which may provide you with waiver of Texas taxation, particularly if you were a resident of California and a non-resident of Texas and if you moved the boat out of Texas promptly after your purchase so as to not have "used" it in that State.

Sales and Use taxes both being privilege taxes.

If you paid sale / use tax in Texas then you can receive credit against use taxation in Florida for the amount that you paid in Texas. You don't get double dinged with sales / use taxation, the States provide reciprocity for taxation credits in other States.

Reference link for Texas Sales / Use taxation: http://https://comptroller.texas.gov/taxes/sales/

If you bought a boat in Texas, you'll owe sales tax. If you brought a boat into Texas from outside the state, you'll owe use tax. Details about sales tax and use tax follow.


SALES AND USE TAX
Texas imposes a 6.25 percent state sales and use tax on all retail sales, leases and rentals of most goods, as well as taxable services. Local taxing jurisdictions (cities, counties, special purpose districts and transit authorities) can also impose up to 2 percent sales and use tax for a maximum combined rate of 8.25 percent.

Who is responsible for boat and boat motor sales tax?

The purchaser of a taxable boat or boat motor in Texas is responsible for paying the boat and boat motor sales tax. If the purchaser pays the tax to a licensed Texas dealer, the tax becomes the responsibility of the dealer.

If the dealer did not collect the tax, or if the boat or boat motor was purchased from someone who is not a dealer, the purchaser must pay the tax directly to the Texas Parks and Wildlife Department or to a county tax assessor-collector within 20 working days from the date the taxable boat or boat motor is delivered to the purchaser. It is paid at the time of boat registration.

Tax Rate
6 1/4 (.0625) percent of sales price minus any trade-in allowance of another taxable boat or boat motor.

Due Date
Boat sales tax is due within 20 working days from delivery.

Who is responsible for boat and boat motor use tax?

Boat and boat motor use tax is due on any taxable boat or boat motor purchased outside Texas and brought into Texas. The user is responsible for paying the tax to Texas Parks and Wildlife Department or to a county tax assessor-collector within 20 working days after the date that the taxable boat or boat motor is brought into Texas.

Tax Rate
6 1/4 (.0625) percent use tax less credit for taxes paid to another state, unless the $15 new resident tax applies.

Due Date
Boat use tax is due within 20 working days from the date the boat or motor is brought into the state.

You indicated your purchase was in 2017. One would need to check the laws that were applicable at that time period for exemptions, such as prompt removal.

Copied below is an more recent exemption.

Exemption for Certain Boats and Boat Motors
House Bill 4032
Effective Sept. 1, 2019

House Bill 4032 changes the definition of a boat to include all vessels 115 feet or shorter in length, measured from the tip of the bow in a straight line to the stern. This includes both commercial and noncommercial boats, regardless of who sold the boat.

The bill creates an exemption for boats and motors sold for use in another state if the boat or motor

is removed from this state within 10 days of purchase;
is placed in a repair facility for repairs or modifications within 10 days of purchase and removed from this state within 20 days of completion of the repairs or modifications; or
displays a temporary use permit and is removed from this state within 90 days of purchase.
The bill also provides for the issuance of a temporary use permit allowing exempt use in Texas of a taxable boat or boat motor purchased outside of Texas. The fee for the permit is $150 and is valid for 90 days. An owner can obtain two permits per calendar year. The second permit cannot be issued before the 30th day after the date the first permit expires.

Lastly, the bill limits the amount of boat sales tax on the sale of a taxable boat or motor to $18,750 (300,000 taxable sales price). The bill also changes the due date for boat and boat motor sales and use tax to 45 working days (previously 20) after the taxable boat or motor is delivered to the purchaser or brought into Texas for use.

Amends Parks and Wildlife Code Sections 31.003 (Definitions), 31.006 (Appointment of Authorized Agent), 31.037 (Change in Ownership Interest; Notice to Department), 31.041 (Dealer's, Distributor's, and Manufacturer's License), 31.046 (Application for Certificate of Title), and 31.053 (Transfers of Vessels and Outboard Motors)
Amends Tax Code Sections 160.001 (Definitions) and 160.041(Collection Procedure)
Adds Tax Code Sections 160.0246 (Exemption for Certain Boats and Motors Temporarily Used In This State), 160.0247 (Temporary Use Permit), and 160.026 (Limitation on Amount of Tax)

Hope to have been of assistance.

[BlueH2Obound]

I can't speak for California, but for Florida you may not have to pay them Sales & Use Tax. You can register it in Florida, and may not be required to pay the 6% use tax if you did NOT bring it into Florida in the six months prior to the purchase. See attached, specifically the 2nd paragraph under Sales & Use Tax, and the 2nd bullet under the above paragraph:

[gonesail]

no .. you need to show proof you paid tax. otherwise you pay Florida tax to register it there. ask me how I know

[Boatguy30]

How did CA know you own a boat out of state? Did TX notify them?

[Montanan]

Originally Posted by Boatguy30

How did CA know you own a boat out of state? Did TX notify them?

There be several possible way of the county assessor determining that the boat may be accessed taxation.

If the vessel was documented at the USCG with a Port of Call listed as in California then California's county assessor will pursue taxation based on that presumptive evidence of it being in the county.

If the previous owner had titled it in California the title transfer upon sell would also trigger a potential notification for property assessment, and / or if the new owner registered the boat in California when they bought it in Texas.

If the boat has not been in California then no use tax will be due. Since it was purchased in Texas, no California sales tax would be due.

Simple administrative issue to contact the county assessor's office and clarify the situation.

[smbdyiam2]

Do snowbirds that stay 6 months in Florida have to register and pay taxes?
Some come down with Motorhomes stay winter go north and leave motor homes here. Do this for 5 years and then take motor home north to sell. Do they have to pay registration and taxes in Florida. I thought it was when they established permeant residency or started a job.