Understanding Florida 180 day tax waiver

[Fiftybucks]

We just bought a boat that is immediately going into dry storage where some maintenance items will be addressed and will be there for 3 months. After that the boat will be moved around FL to GA or a quick trip out to Bahamas. The boat is a documented vessel, and we have the 180 day waiver at $435.

I have read the Tax Waiver, and there is a clause I have not seem mentioned before that at the end of the 180 days, the boat must Stay Out of FL for 6 months. Other boat owners have mentioned taking it to the Bahamas to get fuel, keeping the receipt etc..but that doesn't alleviate the 6 months away requirement.

Our plan is to move the boat up the coast to Virginia, and maybe find a nice marina and nearby dry storage. But until we get there does taking the boat to the Bahamas and providing proof by way of receipts or slip fee get us anywhere on the Florida Tax Waiver? What do others practice.

[a64pilot]

Where is the boat going based?
I know people cheat and don’t pay taxes, but believe wherever the boat will be based if in the US, you will owe taxes there.
I believe the intent is so that you can take the boat home and pay your taxes there

[Fiftybucks]

Yes, pay taxes... but for Virginia 1500 miles away... but maybe not for 2 years while moving the boat. Not to avoid but what is legal until we get the boat to Virginia or Maryland. We don't know where as we live in Idaho. Where does proof of being out of Florida for a night provide?

[letsgetsailing3]

Florida supposedly looks at intent, so if you already have a boat there, and show up in six months with another boat, or buy a boat there and go to the Bahamas and then return, I'm guessing they'd see through that.

But if you live in Idaho, and haven't registered anything in Florida, you can surely move to Virginia first, register the boat there, and then pass through Florida later.

You'll also be insuring the boat somewhere. I get the temptation, but it's a lot easier to just go with what you're actually doing.

[john61ct]

There are states / territories that do not assess sales/use taxes on boats they register.

But Florida requires that true sales/use tax be paid in **some** US jurisdiction before you stay in Florida, or it becomes due in Florida, even many years after you bought her elsewhere.

The only way is to pay a **lower** rate somewhere else, coming from places that require **no** tax be paid, does **not** help wrt Florida.

Likely worth your while contacting this highly recommended FL lawyer http://amrl.com/attorney/catherine-kent/

[S/V Illusion]

Florida allows you to stay for no more than 90 days after which taxes are due. There are no exemptions unless you can prove you paid in another state. Documentation is irrelevant. You can easily verify this by contacting any Florida tax office.

[Fiftybucks]

We want to go to the bahamas, but a year from now after my wife retires. It’s Hurricane season and the boat isn’t moving until Almost November which eats into my 180 days. I know there is the 90 day and 180 day waiver as I have just paid for the 180 and a filled out the notarized form. None of this is what I asked. It is not whether to pay taxes. We want to move it to Virginia but I am a newbie and can’t see doing more than 50 miles a day and it’s 1500 miles from Tampa to Virginia. It is is the time and does the receipt buy me more time. Do you see why I am asking?
Why do people get a receipt to show the boat has been elsewhere. Is it a scam? Are they doing something to get by the regulations? They do this receipt thing to what end? To who do they show this receipt? They can’t go back to Florida says right on the form.

[john61ct]

So what do you think your 180-day waiver is for?

It's to give you extra time to get your new purchase out of the state so you can pay your sales/use/property tax in another jurisdiction.

The "go out come back" thing you're talking about has to do with Florida **registration**, completely separate topic from the sales/use/property tax issues.

Pay a delivery captain to get the boat to Virginia, or at least out of Florida.

Or pay the tax, which it seems you don't mind, so do that.

No one in the bureaucracy cares about whether you're using the boat or not, least of all about hurricanes or your limited sailing ability; there is no way to buy more time at least afaik, that's why calling a lawyer like I gave you might help.

And here's the actual text, pretty straightforward

https://www.flsenate.gov/Laws/Statutes/2011/212.05

[Fiftybucks]

John61. - that is the conclusion I have come to. There is no way to extend. I have to leave sooner.

[akprb]

First they gotta find you!!!

[Montanan]

Originally Posted by john61ct

So what do you think your 180-day waiver is for?

It's to give you extra time to get your new purchase out of the state so you can pay your sales/use/property tax in another jurisdiction.

The "go out come back" thing you're talking about has to do with Florida **registration**, completely separate topic from the sales/use/property tax issues.

Pay a delivery captain to get the boat to Virginia, or at least out of Florida.

Or pay the tax, which it seems you don't mind, so do that.

No one in the bureaucracy cares about whether you're using the boat or not, least of all about hurricanes or your limited sailing ability; there is no way to buy more time at least afaik, that's why calling a lawyer like I gave you might help.

And here's the actual text, pretty straightforward

https://www.flsenate.gov/Laws/Statutes/2011/212.05

This is all very straight forward. First, don't confuse sales / use tax with State registration. If you don't want to pay the required sale / use tax you must remove the boat from Florida within the waiver period and it must remain out of Florida for 6 months.
As per John's link above to the pertinent statute:

If the purchaser fails to remove the qualifying boat from this state within the maximum 180 days after purchase or a nonqualifying boat or an aircraft from this state within 10 days after purchase or, when the boat or aircraft is repaired or altered, within 20 days after completion of such repairs or alterations, or permits the boat or aircraft to return to this state within 6 months from the date of departure, except as provided in s. 212.08(7)(fff), or if the purchaser fails to furnish the department with any of the documentation required by this subparagraph within the prescribed time period, the purchaser shall be liable for use tax on the cost price of the boat or aircraft and, in addition thereto, payment of a penalty to the Department of Revenue equal to the tax payable. This penalty shall be in lieu of the penalty imposed by s. 212.12(2). The maximum 180-day period following the sale of a qualifying boat tax-exempt to a nonresident may not be tolled for any reason.

Further Reference: https://www.flsenate.gov/Laws/Statutes/2011/212.08

(7) MISCELLANEOUS EXEMPTIONS.—Exemptions provided to any entity by this chapter do not inure to any transaction that is otherwise taxable under this chapter when payment is made by a representative or employee of the entity by any means, including, but not limited to, cash, check, or credit card, even when that representative or employee is subsequently reimbursed by the entity. In addition, exemptions provided to any entity by this subsection do not inure to any transaction that is otherwise taxable under this chapter unless the entity has obtained a sales tax exemption certificate from the department or the entity obtains or provides other documentation as required by the department. Eligible purchases or leases made with such a certificate must be in strict compliance with this subsection and departmental rules, and any person who makes an exempt purchase with a certificate that is not in strict compliance with this subsection and the rules is liable for and shall pay the tax. The department may adopt rules to administer this subsection.

(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.

[wingless]

Florida has lots of bridge tenders. My understanding is they log boat names for tax purposes.

[ArmyDaveNY]

Exactly what are the Florida sales taxes? Here in NYC (and also in upstate Erie County) the taxes are just under 9% so it is often worth using another state to save a bunch of money. If the taxes in another state are close to those in Florida, is it worth moving the boat when the difference may only be a few hundred dollars?

[Davy J]

Florida has lots of bridge tenders. My understanding is they log boat names for tax purposes.

Not sure why this nonsense keeps coming up.............

Only USCG documented boats are required to display a name and hailing port. If you are a Florida registered boat and not USCG documented, you could change the name of your boat daily.......... No one would be able to track you by bridge tenders.................

[Two Loons]

Not sure if the OP has had his questions answered, so I can offer this from recent firsthand experience as an out-of-state purchaser in Florida.
You must remove the boat from FL within your waiver period (180 days in your case, and ours). The purpose of obtaining a fuel or marina slip receipt upon arrival at your out-of-Florida destination is that you are required to provide the state with evidence of your departure date. We emailed a copy of our West End Bahamas slip receipt to an address provided by the tax office. Our submission was acknowledged by email response giving us confidence that the state accepted our compliance to that point. Once out of FL, you must keep the boat out for 180 days. If you bring it back into the state before 180 days you will owe the sales tax plus a penalty.
Hope that helps.