Sales Tax Question

[Montanan]

Originally Posted by Messing About

Does anyone know how Florida enforces the Use Tax? When documented vessels don't have to display FL registration tags, besides pulling over boats the marine officers don't recognize and verifying documentation . . . how else would they know a boat was purchased less than six months before it arrived? And do marine cops really help enforce tax laws?

Not that I would EVER skirt the law . . . Hell, I was a cop in Arizona for 20 years myself.

Okay, so it is evident you are not knowledgeable about basic USCG documentation and State registration.

USCG documented vessel are required by the States to be registered with the State of Principal Use of a vessel and the vessel will wear a State registration decal which changes in color with each calendar year so that a vessel can be readily discerned as to whether it is validly registered or either not registered or has expired registration. Essentially the same as the small tag that one displays on your vehicles license plate. The State of Principal use can change during the course of a year if the boat goes voyaging to a different State which then requires the vessel to be registered with a new State and the prior registration to be cancelled by notification that the vessel has changed it place of use.

A USCG documented vessel does NOT wear the State identification numbers, it only displays the decal that indicates the year of registration.

When you register the vessel, the county tax assessor / collector will determine if any Sales or Use tax is due on the vessel before issuing a registration [and / or a titling, if the vessel is not USCG documented and if the State is a titling State]. Also at time of registration, the tax assessor will establish the personal property taxation and any excise taxation on the vessel.

The "water cops" do not need to be involved with the taxation process. The "water cops" just enforce the vessel registration. No different than with vehicles. Registration provide permission and privilege to the vessel to use the waters of the State. One is not allowed to use a vessel that is not properly registered, just as one is not allowed to use a vehicle on public roads that is not registered.

The penalties for not paying the Sales / Use tax are onerous. In some states up to equal to the amount of tax that was due and then a hefty interest is applied on the total, also this involves a criminal offense punishable by up to 1 year in jail.

Unpaid property and excise taxes become liens on the vessel and follow it to any subsequent purchaser.

The counties routinely extract relevant vessel information from the USCG documentation database as to locating vessels that could be taxed and they also send Revenue agents out to review vessels at marinas to determine if they are included in their taxation records.

[Captain Bill]

You should also keep in mind that though there are some states that do not require a state registration of a documented vessel, Florida will require you to get a Florida registration if the boat is used in Florida. Also even if it has a registration from another state that Florida will require a Florida cruising permit after 90 days in Florida. Said permit is conveniently priced the same as a Florida registration.

[Montanan]

To register a watercraft in Florida, you need to:

Register the vessel through the local County Tax Collector's Office.
Receive a valid Certificate of Registration and a Certificate of Ownership if the vessel has been titled by the State.
Affix a registration decal to the port side of the boat.
Remove expired decals from the vessel.
Request a replacement boat registration or decal through the DHSMV.



All vessels registered and titled in Florida must display three types of identification:

Florida registration number
Hull identification number
Registration Decal


Decals
A decal identifying the year that the vessel registration is valid will be issued with each registration certificate. The decal must be displayed on the port (left) side of the vessel, positioned immediately before or after the registration number unless the vessel is USCG documented or foreign flagged, in which case the State registration numbers are not required to be displayed, only the registration decal. Decals from expired registrations must be removed from the vessel.

[Messing About]

You have been most helpful. I will not relocate operate the vessel in FL waters for the first six months, at least. Since I enjoyed 9 years of boating and fishing there in my 40's, I will just skip Florida on my big cruise.

Charleston Harbor and the Stono River at John's Island SC will be fine enough cruising and training grounds for me. I will also likely source a local ASA instructor for some 1:1's. I have my 101, 111, 103, 104 certs but need instructor time on this big girl before I'm ready to solo.

Again, thanks for the informative tax info.

[Montanan]

Boating - Title and Register a Watercraft or Outboard Motor in SC
Boating - Documented Vessels

https://www.dnr.sc.gov/boating/Titling_and_Registration/Documented_Vessels.html

If you choose to document your vessel (instead of titling and registering it in SC), please contact the US Coast Guard: United States Coast Guard National Vessel Documentation Center

If a vessel is documented with the US Coast Guard it does not have to be titled or registered in SC.

If your boat is Documented with the US Coast Guard, you will be required to pay personal property taxes to your county of residence if your boat is determined to be taxable by your county.

Outboard Motors: If a documented vessel has outboard motors and is primarily housed in SC, the motor(s) must be titled.

Lifeboat: A vessel's lifeboat does not have to be titled or registered if used only for lifesaving purposes.

If you have a dinghy that is not used only for lifesaving then that vessel will need to be separately titled and registered with SC.


Outboard Motor on your Documented Vessel
If the documented vessel is propelled by outboard motor(s), the outboard motor is required to be titled, if the state of principle use is South Carolina, and it is five (5) horsepower or greater.The outboard motor(s) will be titled based on the purchasing situation. Please see “How to Title and Register a Watercraft or Outboard Motor in SC.”

Any vessel that is documented by the United States Coast Guard (U.S.C.G.) can be operated on the waters of this state with no additional S.C. registration issued by South Carolina Department of Natural Resources.

Documented Vessels are exempt from registration in South Carolina.

[Montanan]

Originally Posted by Messing About

I am currently a resident of AZ.

My AZ home is on the market. When it sells, I intend to switch my domicile/residency to FL via the Escapees in Green Cove Springs and I want to move the boat to SWFL for 6 months before going cruising full time away from US mainland.

Will I have to keep the boat out of FL for any period of time to ensure no tax is due there? Or since I bought in in SC and paid their dues, am I in the clear? Again, it's USCG documented.
What if after doing so, I secure a wet slip in SWFL, which is where I want to spend 6 months before going full time cruising?

Escapees is merely a mail forwarding service to which one can subscribe for convenience. A mail forwarding service does NOT establish domicile or residency to you for legal purposes or taxation purposes.

Since you have a home you are intending to sell in Arizona, you presently have domicile and residency in Arizona and that status remains until you establish residency in another State. The place where you last had domicile follows you until you have a new domicile [i.e., where you lay your head to rest, or where you intend to return to]. So plan on continuing to file and pay Arizona State taxes until you have become established elsewhere. And of course, you will have Federal taxation on your worldwide income continuously unless you give up your USA citizenship and move out of country.

Each State and territory of the United States has specific laws and regulations as to how residency is established and discontinued and what is required to establish residency.

If you relocate to South Carolina or to Florida then you will need to determine if and when you have established residency based on their specific requirements.

Traveling to international waters or foreign places does not in itself adjust your existing / prior residency status.

Enlightening reference:

https://help.virtualpostmail.com/article/211-can-i-become-a-state-resident-by-using-your-mailbox-service#:~:text=Many%20people%20have%20asked

[sck5]

Re: FLorida registration with on a documented boat. I was told by my broker (I bought a boat in FL and moved it to GA within 90 days. Was told not to come back for 6 months) that it really is all about the money. They want the tax and and permit fees if your boat is resident in the state. He said there isnt any need to put the registration number on the boat - Just the tax paid sticker for the current year.