Understanding Florida 180 day tax waiver

[Fiftybucks]

I am the OP... it is 16 months since I bought the boat in Tampa area. Due to severe damage the attempt to get the boat out of Florida was delayed... I did get the boat to Fort Lauderdale... and ending up paying Florida State Sales Tax, before the drop dead date of 1/19/2020. After calls, a form was sent to me, after which upon payment by check, I received a letter indicating tax was paid in full, but owed an additional $50 to Manatee Co. which I paid. If you miss the drop dead date, there is a 1% per day penalty. Don't miss that date. The boat is in Titusville still en route to SC.

[StanleyCup]

Originally Posted by NPCampbell

4) If you do stay out of Florida for 180 days, then you may re-enter Florida for up to 20 days per calendar year starting from the time that you pull into a marina or boat storage facility. If you stay longer than 20 days, once again, you are liable for Florida's 6% sales tax minus any sales tax you may have paid already.

This last bit is inconsistent with what the regulation seems to say and what people seem to interpret. Isn't it true that if a non-resident buys a boat in Florida, and then leaves Florida with the boat according to the waiver, registers the boat in another state and uses it outside Florida for more than 6 months, if they come back to Florida after that, they may register the boat without paying any FL tax?

[skipgundlach]

Originally Posted by Exile

Thanks Skip, and good luck with your haulout (never fun).

Thanks. You saw our Part III recently I trust.

Nearly all is finished. My computer aside (under way awaiting assembly and installation on arrival of all the parts) all the dead stuff has been replaced and working.

Pressure wash yesterday had no effect on barnacle bases, so we’re chipping them off in prep for bottom paint, and we want to reset a seeping through hull before then, but otherwise we’re largely ready to leave. When my new/bigger HDD and memory arrive and I clone my existing drive over, and install it all, we’ll be complete after the paint (new reveal and boot stripes plus bottom) and anxious to get under way.

[skipgundlach]

Originally Posted by NPCampbell

From what I can tell, assuming you are not a Florida resident:

1) You must leave Florida within 180 days. There are no further extensions unless your boat was being repaired. If you stay in Florida or Florida waters 181 days you will owe Florida's 6% sales tax up to a cap of $18000.

2) Within an additional 30 days after leaving Florida, you must provide documentation that the boat was registered in another state. Paying sales tax for another state is NOT required to satisfy this condition. If you don't provide this documentation, you will owe Florida 6%.

3) You must remain outside of Florida for 180 days. If you don't, then you are liable for sales tax of Florida's 6% sales tax minus Virginia's 2% sales tax (if you paid it) up to a cap of $18000.

4) If you do stay out of Florida for 180 days, then you may re-enter Florida for up to 20 days per calendar year starting from the time that you pull into a marina or boat storage facility. If you stay longer than 20 days, once again, you are liable for Florida's 6% sales tax minus any sales tax you may have paid already. NOTE: It is unclear if the 20 days applies to boats that never pay for a mooring ball or marina as the law specifically starts the 20 day period when you use one of those facilities.

Things have changed since we bought our boat.

One could get a 90 day cruising permit, not 180.

In our case we put it into a RRF (see discussion earlier) for nearly 3 years, then left but had a wreck nearly immediately (seen on CF 2-7-07 or thereabouts), and were taken to the cleaners (oops, Keys Boat Works) - also an RRF - so the tolling stopped, sailed it back to the same place (tolling again), and after final repairs and some paint, took it around to SSiimonsIsland in GA for documentation of our departure (pic of boat along with Jax fuel receipt).

As to returning, we are a Coast Guard registered boat, which apparently changes the game, as registration in a state of any sort isn't required.

We had to pay use tax by virtue of being a 'foreign' (not FL) boat staying for more than 90 days. One must document that you are in FL for less than 90 days from the date of challenge to avoid being cited (a misdemeanor) AND having to register (our case). I know (there may be others) of no other way for documentation other than a fuel receipt or boarding documentation from a different state, dated less than 90 days earlier...

There's another thread in CF on THAT subject (documenting less than 90 days in state)...

[denverd0n]

Originally Posted by StanleyCup

Isn't it true that if a non-resident buys a boat in Florida, and then leaves Florida with the boat according to the waiver, registers the boat in another state and uses it outside Florida for more than 6 months, if they come back to Florida after that, they may register the boat without paying any FL tax?

Yes, that is true. The wording in the post you were responding to was rather misleading.

[StanleyCup]

If the transaction is a private sale (no broker), where can I purchase the 90-day sticker and subsequent 90-day extension? I have called a broker I know and they said that they cannot sell me the stickers unless it is a brokerage transaction.

Does anyone know a broker that might be able to sell me the stickers?

Thanks.

[Montanan]

Originally Posted by StanleyCup

If the transaction is a private sale (no broker), where can I purchase the 90-day sticker and subsequent 90-day extension? I have called a broker I know and they said that they cannot sell me the stickers unless it is a brokerage transaction.

Does anyone know a broker that might be able to sell me the stickers?

Thanks.

Short answer, a purchaser of a vessel via a private sale transaction is not allowed the temporary sales tax exemption or the decal registering the temporary sales tax exemption. Accordingly, you will not find a registered dealer or broker that will sale you such exemption.

I believe that specific exemption and decals for boats sold to non-residents is only availed to purchases through registered dealers or broker, and is NOT availed to private sales. The GT-500003 form / Affidavit is executed by the purchaser and submitted to the registered dealer / broker at time of sale which registered dealer / brokers are the only persons who can sale and issue the temporary tax exemption decals to their boat purchaser. Note registered dealers and brokers purchase such decals from the State as part of their registered business activities and act as the receiver of the signed Affidavit from their purchasing clients and must forward the Affidavit to the State Department of Revenue within 5 days of the sale with accompanying notification of sale data, e.g., invoice / bill of sale / closing statement.

To speak with a Department representative, call Taxpayer Services at 850-488-6800, Monday through Friday (excluding holidays).
To find a taxpayer service center near you, go to floridarevenue.com/taxes/servicecenters.

For written replies to tax questions, write to:
Taxpayer Services – MS 3-2000
Florida Department of Revenue
5050 W Tennessee St
Tallahassee FL 32399-0112


Further reference link here: Florida sales tax and registration

A 90 Day Temporary Tax Exemption Decal May Be Purchased From Your Broker and an
additional 90 days may be purchased from the Broker BY THE 60th day whilst under the first 90 day decal using a Sales Tax Exemption Affidavit for All Vessels Purchased from Brokers & Dealers which will be removed from the State of Florida. Vessels must be at least 5 Net Tons AS LONG AS – Purchaser is NOT a Florida Resident, or the definition thereof.

Dinghy’s, Jet Ski’s & Boat Trailers are NOT EXEMPT unless
removed within 10 days of the date of purchase.

Sales Between Individuals are not exempt


Florida is Reciprocal to Sales and Use Taxes Paid to Another State

Visiting Period – 90 Days with valid out of state registration.

Resale Exempt Certificates, not to be confused with the sales / use tax temporary exemption decal

The Certificates are only to be used if vessel is being sold by Broker or Dealer
OR
If the vessel is being used SOLELY for Bareboat Chartering



SOJOURNER REGISTRATION, a.k.a. Application for Florida registration of non-titled vessels.

This is used to register: Out-of-state registered vessels, dealer owned vessels, USCG documented vessels, government vessels, amphibious vessels.

Sojourner registrations are issued to those out of state registered vessel owners who remain in Florida for more than 90 days, but intend to return to their home state and take the vessel with them. They are issued DECALS ONLY, but must prove they are registered in another state. Form HSMV 87244 Must be completed.
Reference link to form HSMV 87244: Florida sales tax and registration

Normal registration fees will be charged for the Non-Titling Sojourner Registration.



Reference the GT-500003 form / Affidavit linked here: https://www.pdffiller.com/jsfiller-d...03edf40ede0ca3

Specific Exemptions

Boats Sold to Nonresidents

A boat sold by or through a registered dealer or broker to a purchaser who is a nonresident of Florida at the time of taking delivery of the boat in Florida is exempt. This exemption applies to the sale of a boat, including any accessories, but does not apply to the sale of a boat trailer.

To obtain the exemption, the nonresident purchaser must meet the following requirements:
 The nonresident purchaser must sign an affidavit (Form GT-500003) stating that he or she has read the law and rules regarding the specific exemption claimed and agrees to remove the boat from Florida.
 A boat of less than 5 net tons of admeasurement must leave Florida within 10 days of purchase or immediately be placed in the care, custody, and control of a registered repair facility for repairs, additions, or alterations. The boat must leave Florida within 20 days after completion of the repairs.
 If the boat is 5 net tons of admeasurement or larger, the purchaser may obtain a set of Florida Department of Revenue boat decals, which authorize the boat to remain in Florida waters up to 90 days after the purchase. This period may be extended to 180 days with the purchase of a 90-day extension decal. The decals must be obtained from the selling dealer or broker.
 Within 5 days of the date of sale, the dealer or broker must provide the Department with a copy of the invoice, bill of sale, and/or closing statement, and the original, signed, removal affidavit.
 Within 10 days of removing the boat, the nonresident purchaser must furnish the Department with proof that the boat left Florida. Receipts for fuel, dockage, or repairs purchased outside Florida must identify the boat.
 Within 30 days of removal, the nonresident purchaser must provide the Department with written documentation evidencing that the boat was documented, licensed, titled, or registered outside Florida or documentation that the nonresident purchaser has applied for documentation, licensing, titling, or registration of the boat.

This exemption does not apply to a Florida resident, an entity where the controlling person is a Florida resident, or a corporation where any officers or directors are Florida residents.

[denverd0n]

Seems to me that it would only be fair if the 90 day exemption was available whether you bought the boat through a broker or not. But unfortunately it is not. My guess would be that the broker's lobby managed to work that into the law.

On the other hand, Florida is one of the few states (I think California is the only other) that requires boat brokers to have a license. So, maybe that's the trade-off.

Short answer is that you will not find a broker who will sell you the decal. If they did, it would be grounds to have their license revoked.

Perhaps retain a buyer's broker, and try to negotiate a minimal fee for his/her services?

[Montanan]

It is a simple matter for the purchaser in a private sale that intends to promptly remove their newly purchased vessel from Florida for use in another State to instead promptly register the boat in the State that will become the place of principal use and then to file for a routine Sojourners Registration providing proof of the registration in the other State to obtain the 90 day waiver of required registration of vessels residing in Florida.

If one keeps their out of state registered vessel or USCG documented vessel in Florida for more than 90 days then one has to register their vessel with the State of Florida.

[StanleyCup]

Originally Posted by Montanan

It is a simple matter for the purchaser in a private sale that intends to promptly remove their newly purchased vessel from Florida for use in another State to instead promptly register the boat in the State that will become the place of principal use and then to file for a routine Sojourners Registration providing proof of the registration in the other State to obtain the 90 day waiver of required registration of vessels residing in Florida.

In this case, wouldn't the vessel be subject to tax because the private transaction took place in Florida? The scenario would be:
1. Buyer pays seller in Florida for a boat registered in Florida, and takes possession
2. Buyer moves the boat from Florida waters to another state and lawfully registers the boat in another state
3. At a later time, the buyer returns to Florida and applies for sojourners

Wouldn't the sale in step #1 trigger use tax, regardless of whether the boat is going to be moved out of Florida? That's what the statute seems to indicate. Another post said a non-resident buyer has 10 days to get the boat out of Florida, but I'm not reading that anywhere.

[Montanan]

Originally Posted by StanleyCup

In this case, wouldn't the vessel be subject to tax because the private transaction took place in Florida? The scenario would be:
1. Buyer pays seller in Florida for a boat registered in Florida, and takes possession
2. Buyer moves the boat from Florida waters to another state and lawfully registers the boat in another state
3. At a later time, the buyer returns to Florida and applies for sojourners

Wouldn't the sale in step #1 trigger use tax, regardless of whether the boat is going to be moved out of Florida? That's what the statute seems to indicate.

The privilege tax, e.g., a use tax, can be triggered if the boat is to be used in Florida. If it is promptly removed from Florida and becomes registered in another State whose waters are the vessel's principal place of use then the registration in the other state is a valid registration. If the other state has a use tax then such tax will be due in that state.

A sojourner's permit provides for just 90 days of use in Florida. If you stay longer than 90 days in Florida than you have to register the boat in Florida because the state deems that you have established Florida as a place of principal use. If you paid a use tax in another state then reciprocity is granted by Florida for the amount of use tax paid elsewhere against the use tax that would otherwise be due to Florida.

One convolutes matters when one uses a good in multiple taxation juridictions and can trigger obligations in the multiple jurisdictions. Just pay what the authorities deem is due, it is only money and amounts to a small percentage of the value consideration one paid for the good. USA State Sales and Use taxation are modest in comparison to EU's VAT and not all states have such taxations.