Florida Sales Tax and Exit Fees? Can You?

[Captain Bill]

Originally Posted by Stu Jackson

Given all of this, other than folks transiting in planning to go to the Bahamas or the Keys, why would anyone want to even consider bringing their boat to Florida? Such a "boater friendly" State, eh?

No personal property tax on boats and no state income tax.

[Cheechako]

I found Fl to be pretty low key about it all. Bought a boat there, had work done for months. Finally just decided to pay the 6% (lower than my state) asked what I had to do, They just took the money. I got the impression they dont argue if your giving money... even if it's been far over 90 days...
Of course... just like Customs and Immagartion... it all depends on the alignment of the planets....

[tomfl]

As a Florida resident I paid the tax when I bough my boat. If you are not a Florida resident and can prove it and can prove you register the boat in a different place you can avoid the tax.

One part of the law often missed is that if Florida suspects you are trying to pull a fast one by being a Florida resident and setting up a shell corporation in DE, or elsewhere, they can come after you even if you register the boat elsewhere.

[letsgetsailing3]

Here's the source for my earlier post.

https://www.waterwayguide.com/forum....way_law_part_2

If you're a Florida resident, and you try to pull a fast one, they'll likely notice.

[letsgetsailing3]

Originally Posted by Stu Jackson

Given all of this, other than folks transiting in planning to go to the Bahamas or the Keys, why would anyone want to even consider bringing their boat to Florida? Such a "boater friendly" State, eh?

You're asking this question from...

... California?

I don't know... Weather? Sunshine? Coastline? Less hassle than most places? What's the tax situation like in California?

[Captain Bill]

Originally Posted by Cheechako

I found Fl to be pretty low key about it all. Bought a boat there, had work done for months. Finally just decided to pay the 6% (lower than my state) asked what I had to do, They just took the money. I got the impression they dont argue if your giving money... even if it's been far over 90 days...
Of course... just like Customs and Immagartion... it all depends on the alignment of the planets....

You probably got to take advantage of one of the exceptions to the 90 day rule. If you are having work done in a Florida boat yard, days in the yard do not count as part of the 90 ays you have to gtyour newly purchased boat ou of Florida. As has been pointed out if you are a Florida resident they are going to come afteryou anyway.

[hellosailor]

"I am pretty sure that Cap Bill, DenverDON & Band B are correct on this. You don't pay sales tax on personal property you owned before you immigrate to Florida from another state. "
It depends on what you are bringing in. Personal property, pots and pans, furniture, no. But if you bring in a car that you owned in your previous residence state, Florida wants to see proof that the applicable original sales tax was paid--or they'll charge you the Florida sales tax instead. Of course, Florida also charges more for titling cars than most states do, more so than it charges for titling boats, too. The details count when you're playing with tax men.

But it seems like we've collectively found the loophole. Buy a boat in Florida, and get it out in less than 90 days. Then take it to Rhode Island, where there's no sales tax on boats, and register it there, in one of the few states that allows non-residents to state register their motor vehicles/vessels. (I think NC requires residency and charges personal property tax?)

Six months later...you've washed the tax basis away and can bring the boat back to Florida, and after that, every other tax man might be satisfied that the correct sales tax was paid.

Incredible that Florida would make it so short, so simple.

[BandB]

Originally Posted by hellosailor

"I am pretty sure that Cap Bill, DenverDON & Band B are correct on this. You don't pay sales tax on personal property you owned before you immigrate to Florida from another state. "
It depends on what you are bringing in. Personal property, pots and pans, furniture, no. But if you bring in a car that you owned in your previous residence state, Florida wants to see proof that the applicable original sales tax was paid--or they'll charge you the Florida sales tax instead. Of course, Florida also charges more for titling cars than most states do, more so than it charges for titling boats, too. The details count when you're playing with tax men.

But it seems like we've collectively found the loophole. Buy a boat in Florida, and get it out in less than 90 days. Then take it to Rhode Island, where there's no sales tax on boats, and register it there, in one of the few states that allows non-residents to state register their motor vehicles/vessels. (I think NC requires residency and charges personal property tax?)

Six months later...you've washed the tax basis away and can bring the boat back to Florida, and after that, every other tax man might be satisfied that the correct sales tax was paid.

Incredible that Florida would make it so short, so simple.

Not quite that simple. Your residency during all this is relevant plus providing all the evidence of the boat being in Rhode Island that entire time and this not being a maneuver to avoid taxes.

Frankly, it would be an expensive maneuver too. The maximum sales tax on a boat in Florida is $18,000. By the time you take a boat to Rhode Island, keep it there, commute to it, bring it back.

Don't complicate your life with tax games. Take the boat where you intend to use it. Pay the appropriate taxes and keep records. If you move later then pay any incremental taxes if there are any.

Florida is actually one of the friendliest states to buy and own with their limit on sales tax and no property taxes on a boat. Wish we didn't have property taxes on our house.

[Stu Jackson]

Originally Posted by letsgetsailing3

You're asking this question from...

... California?

I don't know... Weather? Sunshine? Coastline? Less hassle than most places? What's the tax situation like in California?

Uhm, it was just a simple question, and Captain Bill answered it nicely in reply #16, thanks, Bill.

In case you haven't noticed, California is experiencing a drought, so we get PLENTY of sunshine (no pun intended on the Sunshine State! ).

"Less hassle?" In case you haven't noticed, again, there seem to be a LOT more "Gee, Florida is really hassling boater" posts on this and other boating forums, whether it be the boat tax or anchoring issues. I haven't seen any of those about California, have you?

We pay property tax on our boat yearly to our county (sorry I don't recall how much but most likely around $100-$200 max). Sales tax on purchase, once only, not yearly.

We have deep water. And an ocean! (sorry, only one). And, at least here in Northern California, San Francisco Bay and the great California Delta. Cruisers paradise. I'm sure the folks in Southern California really like the Channel Islands and Catalina, and the folks in San Diego like their Bay and the proximity to Mexico.

I like Florida, too. My aunt & uncle lived in Miami and I visited them regularly and sailed Rhodes 22s out of Coconut Grove many times. Really fun place.

Just 'cuz I live in California doesn't mean I can't ask, does it?

Thanks again, Bill.

[denverd0n]

Originally Posted by Stu Jackson

Sales tax on purchase, once only, not yearly.

There isn't ANYWHERE that you have to pay sales tax yearly, is there!?! If there is, I sure haven't heard of it.

[denverd0n]

Originally Posted by BandB

Don't complicate your life with tax games.

I'm always amazed at the hoops that some people will jump through to avoid a little tax. Now, if it's something simple, that doesn't interfere with your enjoyment of the boat, then sure! Do what you can to reduce your taxes. But it seems that some people are willing to make it almost impossible to enjoy the boat, just so they can avoid some taxes. That seems silly to me.

[Captain Bill]

Originally Posted by hellosailor

"I am pretty sure that Cap Bill, DenverDON & Band B are correct on this. You don't pay sales tax on personal property you owned before you immigrate to Florida from another state. "
It depends on what you are bringing in. Personal property, pots and pans, furniture, no. But if you bring in a car that you owned in your previous residence state, Florida wants to see proof that the applicable original sales tax was paid--or they'll charge you the Florida sales tax instead. Of course, Florida also charges more for titling cars than most states do, more so than it charges for titling boats, too. The details count when you're playing with tax men.

But it seems like we've collectively found the loophole. Buy a boat in Florida, and get it out in less than 90 days. Then take it to Rhode Island, where there's no sales tax on boats, and register it there, in one of the few states that allows non-residents to state register their motor vehicles/vessels. (I think NC requires residency and charges personal property tax?)

Six months later...you've washed the tax basis away and can bring the boat back to Florida, and after that, every other tax man might be satisfied that the correct sales tax was paid.

Incredible that Florida would make it so short, so simple.

This only works if you are not a resident of Florida when you buy the boat. If you are a resident you will still owe the tax. I din't have to worry because I was a resident of NC at the time. NC hit me up for about $2000 in personal property tax every year, so I did not exactly get away with paying no taxes on the boat.

[chrtucke]

Do you know if owning the boat "outside of FL" includes offshore or does it have to be a US State? In other words...if a boat is purchased in the BVIs and kept there for longer than six months and then brought to FL does that count? This is what we did with a boat in CA, we bought it in Mexico and kept it there for a year or so then had to bring it back for some repairs not available in MX but did not have to pay tax due to it's time of ownership "outside of CA".

[denverd0n]

Once again, refer to the link way back at the beginning of this thread. Or read through the thread. Sorry if I sound a bit curmudgeonly, but your answer is right in front of you.

[BandB]

Originally Posted by chrtucke

Do you know if owning the boat "outside of FL" includes offshore or does it have to be a US State? In other words...if a boat is purchased in the BVIs and kept there for longer than six months and then brought to FL does that count? This is what we did with a boat in CA, we bought it in Mexico and kept it there for a year or so then had to bring it back for some repairs not available in MX but did not have to pay tax due to it's time of ownership "outside of CA".

Actually you open up a whole additional can of worms. Where is it flagged? Were you a resident of Florida when you purchased it. Where was it built? If foreign has duty been paid on it?

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.