Any Canadians here who have bought a boat in the USA?

[My Wind Lass]

Also, in addition to the other taxes just mentioned, there is a new luxury tax which was slated to be implemented this month but which was delayed until, I believe, the end of March. This will apply to all boats over $100,000 CAD. I recommend investigating this if you plan to purchase a boat and bring it into Canada.

[wannacat]

Two things to consider , depending on size of boat you may need a Tonnage Survey for Transport Canada. The other is insurance, hard to come by these days from Canada if the boat isn’t located there initially before cruising south.
Good luck with it.

[boatpoker]

Something to keep in mind ... as has been mentioned, registering the boat in Canada will avoid all Canadian taxes until/unless the boat hits Canadian waters but if you intend to sell the boat in the US after your cruise ... it's illegal to sell a Canadian vessel in the US. There are ways around this but it does make it a little more complicated and selling through an experienced broker is advised.

You may be better off with State Registration and not necessarily Florida. Find the state with the lowest tax and register it there as long as you are out of Florida within 90 days.

To register in Canada, for vessels less than 12 meters you may use the simplified tonnage measurement forms and do it yourself. If the vessel is more than 12 meters or a multi-hull of any length (with other than a flat deck & no super structure) you will have to hire a Transport Canada Appointed Tonnage Measurer.

PM me if I can help. I'm a Transport Canada Appointed Tonnage Measurer and get involved with this kind of transaction quite often.

[wannacat]

Originally Posted by boatpoker

Something to keep in mind ... as has been mentioned, registering the boat in Canada will avoid all Canadian taxes until/unless the boat hits Canadian waters but if you intend to sell the boat in the US after your cruise ... it's illegal to sell a Canadian vessel in the US. There are ways around this but it does make it a little more complicated and selling through an experienced broker is advised.

You may be better off with State Registration and not necessarily Florida. Find the state with the lowest tax and register it there as long as you are out of Florida within 90 days.

To register in Canada, for vessels less than 12 meters you may use the simplified tonnage measurement forms and do it yourself. If the vessel is more than 12 meters or a multi-hull of any length (with other than a flat deck & no super structure) you will have to hire a Transport Canada Appointed Tonnage Measurer.

PM me if I can help. I'm a Transport Canada Appointed Tonnage Measurer and get involved with this kind of transaction quite often.

We purchased our cat in Lauderdale and used a US Tonnage Measurer and this was totally acceptable with Transport Canada. By Boatpoker's verbiage it almost sounds like you have to use someone from Canada, this is not the case. Just need a "tonnage surveyor". Call around for pricing in the area where you purchase the boat.

[boatpoker]

Originally Posted by wannacat

We purchased our cat in Lauderdale and used a US Tonnage Measurer and this was totally acceptable with Transport Canada. By Boatpoker's verbiage it almost sounds like you have to use someone from Canada, this is not the case. Just need a "tonnage surveyor". Call around for pricing in the area where you purchase the boat.

I did not say you have to use a Tonnage Measurer "in Canada". I said you must use a Transport Canada Appointed Measurer. There is such an Appointed Measurer in Florida and in several other states.

[wannacat]

Haven't gone to Transport Canada's website and not going there. The boat purchaser should or call them and see what is acceptable. When we did ours we never heard the term "Appointed Measurer"? We were just told we needed a "Tonnage Certificate". That's what we called around and asked for in Lauderdale.
Maybe things have changed?

[Wilyum]

A few posters have said it is 90 days to leave Florida and not pay taxes, others are saying 1 year (cruising permit), which is it? At the end of say, the 90 days, can you leave to the bahamas and come back for another 90 day window?

[boatpoker]

Originally Posted by wannacat

Haven't gone to Transport Canada's website and not going there. The boat purchaser should or call them and see what is acceptable. When we did ours we never heard the term "Appointed Measurer"? We were just told we needed a "Tonnage Certificate". That's what we called around and asked for in Lauderdale.
Maybe things have changed?

Things haven't changed in the 25yrs I've been doing it as well as training Transport Canada inspectors. You must have used the Appointed Measurer in Florida ( there used to be 3, now down to one).

List of TC Appointed Tonnage measurers

[wannacat]

I guess that's why they call me "Lucky"!

[Montanan]

Originally Posted by Wilyum

A few posters have said it is 90 days to leave Florida and not pay taxes, others are saying 1 year (cruising permit), which is it? At the end of say, the 90 days, can you leave to the bahamas and come back for another 90 day window?

Be sure to know all the laws of the State in which one's jurisdiction one enters for any and all activities. Simple matter to Google search.

A foreign flagged vessel with a US Federal customs and border patrol issued cruising license is exempt from registering and titling in Florida if Florida is the vessels principal place of use (longer than 90 days). Foreign flagged vessels without a cruising license will become subject to Florida use taxation and registration, but not state titling.

The cruising license simplifies the vessels freedom to move from port to port as it regards to customs clearances. Federal customs and immigration are separate subject matter and issues and laws from state rules and laws.

Reference:

https://www.floridasalestax.com/docu...0or%20delivery.


Foreign Flagged Vessels

Boats flying a foreign flag are exempt from Florida use tax if they have a current license to cruise issued by the U.S. Customs Service. Licenses to cruise are available only to boats flagged in countries that have a
treaty with the United States. The boat will remain exempt as long as you do not violate the provisions of the license to cruise.

Foreign flagging of a vessel purchased in Florida does not exempt it from sales taxation if it is purchased in Florida. Sales tax is a privilege tax, the privilege to sale and purchase. Use tax is also a privilege tax based on usage of a good in a state and usages have specific exemptions.

A vessel is provided deferral of registration with Florida if the vessel is only temporarily using Florida's waters, less than 90 days, say entering from Georgia. If Florida becomes the state of principal use [where it will be mostly used during a year, or if used at anytime for more than 90 consecutive days] than the vessel is required to register with the state of Florida per Florida law. Bouncing out of state every 90 days and returning repeatedly does not exempt the vessel's registration if the state of Florida has become the place of principal usage.

Florida’s Safe Harbor Act

If sales or use tax has not been paid on a boat, the boat is exempt from tax if it remains in this state for a maximum of 20 days in any calendar year. The 20-day period is calculated from the date of first dockage or slippage at a registered facility that rents dockage or slippage space in this state.
If a boat enters Florida for repairs or modifications and is placed in a registered repair facility, it may stay without taxation until the repairs are completed. The 20-day period stops while the vessel is undergoing
repair. Once the repairs are complete, the owner has the balance of the 20 days to remove the boat from Florida.
These repairs, additions, alterations, refitting, or modifications may be subject to sales tax and the applicable discretionary sales surtax.

Storage of a boat in Florida will not qualify for the “safe harbor” exemption.
A boat listed for sale, contracted for sale, or sold using a registered boat dealer or yacht broker will qualify for the exemption if sold while in Florida under the safe harbor provisions.

Penalty and Interest

Anyone who purchases a boat and obtains a tax exemption under the nonresident removal provisions will be subject to use tax, discretionary sales surtax, interest, and penalties (including a mandatory penalty
equal to the tax) if:
x The boat is not removed from Florida within the specified period.
x The boat returns within 6 months from the date of departure from Florida.

A purchaser who attempts to evade tax by giving a fraudulent affidavit is subject to the tax due, interest, and a mandatory 200 percent penalty. Additionally, the purchaser will also be subject to a fine of up to $5,000 and up to 5 years in prison.

If the boat dealer or yacht broker fails to furnish the required exemption information, the dealer or broker will owe tax, interest, and mandatory penalties on each transaction.

Inspections and Compliance

Tax compliance is an important part of boat ownership because it helps pay for services that benefit all boaters in Florida. We conduct tax compliance inspections at marinas, repair facilities, and other docking sites on a regular basis. We also use many other sources of information to determine compliance.

[jmschmidt]

Non-US Citizens are not allowed to own a US flagged vessel, i.e., a US Coast Guard "Documented Vessel." If the boat is US flagged, you must cancel the vessels USCG Documentation and probably state register it in Florida or wherever you want. Depending on how long it is to remain in Florida will determine your state tax liability.

[Celestialsailor]

I was a Canadian citizen back in the early 90's and bought a boat in the Us. I had to document it as a Canadian vessel which was quite involved.

[boatpoker]

Originally Posted by Celestialsailor

I was a Canadian citizen back in the early 90's and bought a boat in the Us. I had to document it as a Canadian vessel which was quite involved.

Canada does not "document" vessels, they "register or license" them, both types are Federal, not Provincial.

You did not have to "register" it in Canada, you could have licensed it for free.

There is no cost to license a pleasurecraft in Canada although a $15 fee was proposed last year.

[Celestialsailor]

Originally Posted by boatpoker

Canada does not "document" vessels, they "register or license" them, both types are Federal, not Provincial.

You did not have to "register" it in Canada, you could have licensed it for free.

There is no cost to license a pleasurecraft in Canada although a $15 fee was proposed last year.

Thanx for pointing that out. Yes it was "registered" in Canada. But really equivalent to US documentation...in the sense it allows going to another country. It had to be measured by a surveyor (American in my case) and it was expensive.

[JimJohnston]

Jordan,
Travelling throgh the Caribbean might prove easier if all of your documentation is consistently issued; e.g. passport, citizenship, insurance, boat registration, MMSI number, epirb, Boat competency certificate, VHF and SSB licences. However, a mixed bag of ownershp certificate, passport and so forth could 'raise eyebrows' with some officials in other jurisdictions with consequential delays.

If you can arrange for the purchase of the boat with a broker in North Carolina, sales there are not subject to tax (or at least it used to be the case). That is, for tax purposes the sale is made in NC, even though the boat may be located in Fl.

When we travelled in the islands with our Canadian flagged vessel, I also licenced with a number plaque, the dinghy and OB in Ontario because some island jurisdictions require dinghys to be licenced.

Canadian federal registration is fairly easyily accomplished online but takes time. You need to choose three names, in advance on your application, provide a copy of the bill of sale, the USCG document cancellation (if CG documented) and pay a one time fee. You can also get your MMSI number, VHF licence, and register your Epirb from Transport Canada. Go to their website and do search for small vessel registration where you will find everything you need to know.

Oh, and if you register your home port as Edmonton and ultimately import the boat into Alberta, you will pay only GST at 5%, unless the province introduces an additional sales tax.