Sales Tax in Florida

[Moontide]

Oops, hit the wrong key


2. Have owned it for more than 6 months before bringing into Florida. I can't imagine almost any kind of receipt would work - marina bill, fuel dock, repairs, etc. Probably even photos of it being used. The old CG document would probably work showing an out of state address, or maybe insurance policy that shows where it is "docked".


3. Having the boat in Florida only to have repairs done. Need a yard bill showing it was only being worked on, not used during the time. Would need to remove from Florida "quickly" after the work is done.



Also be aware that if you use any of the bridges in Florida the bridge tenders record and report the name of all vessels transiting a bridge. Presume some programmer has written a program to flag boats in extended periods without registration.



Hope this helps.
Bill

[gonesail]

Originally Posted by S/V Illusion

You will have to document the 26 year old purchase. They don’t simply accept your word for that. If you can’t, you will be required to pay the tax here.

agree. you will need to prove you already paid the sales tax. good luck explaining this to the tax collector

[Montanan]

Florida use taxation is due upon registration / titling of the boat, unless the boat is exempt.

So when does the boat need to be registered in Florida. Reference below for those who might be "passing through" say to the Bahamas.

Boats Requiring Title & Registration
If the type of boat you own is not included in the exemption lists below, you must title and/or register it with the FLHSMV.

The types of boats that are exempt from having a title include vessels:

Used only on private lakes and ponds.
Owned by an entity of the U.S. government.
Not powered by a motor AND less than 16 feet in length.
With federal documentation.
Not used on Florida waters for more than 90 consecutive days.
That are amphibious.
Documented with the U.S. Coast Guard OR in another state (with a federally-approved numbering system) being used on FL waters for 90 days or less.

The vessels exempt from Florida registration include:

Boats less than 16 feet in length AND not powered by a motor.
Regardless of length, all non-motor-powered:
Canoes.
Kayaks.
Racing shells.
Rowing sculls.
Vessels used only on private ponds and lakes.
Boats owned by the U.S. government.
Lifeboats used solely for that purpose.
Non-resident vessels used on Florida waters for no more than 90 consecutive days. FYI: Florida, like most States, deems that a boat has changed its State of Principle use once a boat has been in that State for more than 90 consecutive days, and thence the boat needs to be registered in that State of Principle use.

Nota bene: If you have a motorized dinghy that boat will need to also be registered. If you have a non-motorized dinghy that is longer than 16 feet that boat will also need to be registered.

If you're not sure whether your boat requires titling and registration, call the FLHSMV at (850) 617-2000.

FYI: One can get the facts regarding sales or use taxation regarding boats directly from the horse's mouth.

For Information and Forms
For detailed responses to your questions, contact:
Boat Enforcement Unit
Florida Department of Revenue
P.O. Box 6417
Tallahassee FL 32314-6417
Fax: 850-487-0969
Telephone: 850-487-3273 until 10/26/2010
NEW Telephone number 850-617-8594 after 10/26/2010
Information and forms are available on our Internet site at: www.myflorida.com/dor
To speak with a Department of Revenue representative, call Taxpayer Services, Monday
through Friday, 8 a.m. to 7 p.m., ET, at 800-352-3671.
Persons with hearing or speech impairments may call our TDD at 800-367-8331 or
850-922-1115.
For a written reply to tax questions, write:
Taxpayer Services
Florida Department of Revenue
5050 W Tennessee St
Tallahassee FL 32399-0112


Reference Material
Tax Laws – The Department’s online Revenue Law Library contains statutes, rules, legislative changes,
opinions, court cases, and publications. The Revenue Law Library can be found under the Quick Links on the
Department’s homepage at floridarevenue.com.
Brochures – Download these brochures at floridarevenue.com/forms:
• Florida Sales and Use Tax (GT-800013)
• Discretionary Sales Surtax (GT-800019)
• Sales and Use Tax on Boats – Information for Owners and Purchasers (GT-800005)

Additional references:

https://www.floridasalestax.com/docu...nd-Brokers.pdf

https://floridarevenue.com/Forms_lib...t/gt800005.pdf


Planning to buy a boat in Florida, or have plans to bring one into Florida? The Florida Department of Revenue reminds you that tax compliance is an important aspect of boat ownership.

What is Taxable?

Sales and Use Tax
All boats sold, delivered, used, or stored in Florida are subject to Florida’s sales and use tax, plus any applicable discretionary sales surtax, unless exempt. Florida boat dealers and brokers are required to
collect tax from the purchaser at the time of sale or delivery.
When a boat is sold by someone other than a registered boat dealer, or a boat is brought into Florida for use in Florida, Florida use tax is due. The “use” part of Florida’s sales and use tax provides uniform taxation of items. Florida’s 6% use tax, plus any applicable discretionary sales surtax, is due on a boat used or stored in Florida when:
• The boat is purchased from a person who is not a registered boat dealer and the sale or delivery of the boat occurs in Florida;
• The boat is purchased in another state, a territory of the United States, or the District of Columbia and is brought into Florida within six (6) months of the purchase date; or
• The boat is purchased in a foreign country and is brought into Florida at any time.

When the purchaser does not pay Florida sales and use tax to the seller for a boat purchase, any sales and use tax, plus any applicable discretionary sales surtax, is paid to the county tax collector, licensed private tag agency, or the Department of Highway Safety and Motor Vehicles when registering the boat
in Florida.

Discretionary Sales Surtax
Most counties impose a local option discretionary sales surtax. The surtax is due when the boat is delivered by the dealer or broker to a county that imposes a surtax. The surtax is also due when the boat is purchased from an individual and the boat is used in a county imposing a surtax.
Discretionary sales surtax applies to the first $5,000 of the purchase price.

Current discretionary sales surtax rates for all counties are listed on Form DR-15DSS, Discretionary Sales Surtax Information,
posted at floridarevenue.com/forms in the Discretionary Sales Surtax section.

Maximum Tax
The maximum tax on the sale of a boat or vessel is $18,000. This includes both sales and use tax and discretionary sales surtax. For more information and detailed instructions on this maximum tax, see Tax
Information Publication (TIP) 10A01-07 issued on June 22, 2010, at floridarevenue.com/taxes/tips.
The maximum tax on the repair of a boat or vessel is $60,000. This cap is to be applied to each boat repair occurring in Florida. Subsequent and separate repairs are each subject to their own $60,000 cap.
For more information and detailed instructions on this maximum tax, see TIP 15A01-07 issued on June 26, 2015. TIPs are posted at floridarevenue.com/taxes/tips

Enjoy your voyaging in Florida.

All the best.

[StoneCrab]

Originally Posted by Moontide

Lot of semi accurate info on this thread. The best was the one that quoted the statute. I would suggest you take a copy of that quote with you. There are three exceptions to the sales collection in Florida.



1. Remove the boat from Florida within 60 or 90 days from purchase date (don;t remember which - think 90 but not sure). They put a nasty sticker with your deadline date on both sides of the boat and if they "catch" you there after that date they will assess sales tax. (Probably then have to keep out, and use, for 6 months before bringing it back into Florida.

OK I am trying to overcome the semi accurate part, which is why I am asking for better info from y'all...

What I think I know is that when you buy a boat in Florida and move it to another state, you are exempt from Florida sales tax as long as you send them evidence of registration in another state within some period of time.

This is how my original purchase was handled in 1995. They hunted me down by letter about a month after the move. They sent a letter of demand for the sales tax amount. We sent back copies of the shipment receipt and registration receipt from Illinois.

They don't want you just moving it to the Gulf side and hiding out....

Anyway, if you are moving through Florida with a Federally Documented boat and stay more than 90 days on your way to the Bahamas, you would need to register the boat with Florida, which pays what I consider a use tax. This user fee isn't bad. It is assessed on an annual basis and they give you a discount if you have a Personal Locator Beacon or an EPIRB registered. I think the fee for my boat would only be around $70 per year with the EPIRB and around $100 without.

I know paying for search and rescue and police is costly. By paying an annual fee, I can contribute to those costs, which I appreciate being available, so that I don't have an issue with.

Documented boats are given special consideration in that Florida does not require you to "Title" the boat in Florida if you are Documented.

The cost of paying sales tax a second time on a boat that I've owned since 1995 is what I don't want to do. My intention is to more or less permanently relocate to Florida, so I'm not just passing through.

This is the semi accurate part which needs clarifying. I've been told that if the boat was out of State, ie. owned by me for more than six months, the sales tax thing is not an issue. I've also been told that if I can't prove that I've been registered and paid sales tax in another state, I am liable to Florida for a 6% sales tax no matter how long ago I purchased the boat.

I challenged this on two levels. One being that the Florida statute says registered with "another jurisdiction". Documentation is covered by Federal jurisdiction. To this they say "what they mean is another State". Well statutes are statues and are not meant to be interpreted by clerks.

The second level is the length of ownership. The clerks admit they give a pass to cars that have been owned for a long time, but not boats by their own admission.

I guess there is a third level or point which relies on the standard that you don't need to keep records for more than seven years. I wouldn't expect a State tax body to have a copy of a receipt from 26 years ago, so why would they expect me to have one?

If there is a way to get this cleared up and nailed down before I am standing in line at the County Tax office, I would really like to figure out how.

[Moontide]

Montanan put up a good post.

It not only makes it pretty clear that you are safe from sales tax but also has the references and phone numbers that you need to clarify any questions you still have.

[StoneCrab]

Montanan's post is excellent and I appreciate the work that went into that.

It was a funny experience to see that appear right after I posted my last response. He put his post up while I had the writing window open, so I didn't see it appear until I submitted my reply... then boom, all the detail one could ever hope for.

I sent Montanan a pm but let me publicly say thanks. Good stuff.

Now I am hoping for some luck with the clerks that I encounter. On the whole, I have more good luck than bad in these cases if I am prepared and maintain a good attitude. You never know what road the other person has been down, which is why facts and confidence keep it from getting personal.

[Montanan]

I received your PM. Thank you.

Montana does not have any sales or use taxation, except in a few local resort communities where the town has opted to garner some revenues from the tourists, there being many more out of staters come to The Last Best Place then there are residents of the state so taping into the visitors pockets for 1 or 2% Sales tax aids in maintaining the infrastructure that they use and benefit from. Often the resort communities then reduce the property tax on the residents to offset the residents having to pay the slight taxes on their purchases.

But when we have dealings with States and Provinces and Countries that have VAT, Sale or Use, or excise or ad valorem taxes then one has to become knowledgeable about such as to determining costs and pricings.

Enjoy Florida.

All the best,

Dan

[denverd0n]

Originally Posted by StoneCrab

...if you are moving through Florida with a Federally Documented boat and stay more than 90 days on your way to the Bahamas, you would need to register the boat with Florida, which pays what I consider a use tax.

Wrong term. If you are in Florida for more than 90 days then you must register the boat with the state, and pay a registration fee. "Use tax" is a one-time tax that is the equivalent to sales tax.

Originally Posted by StoneCrab

Documented boats are given special consideration in that Florida does not require you to "Title" the boat in Florida if you are Documented.

Not just Florida. Federal documentation is similar to state titling of a boat. In all states, if your boat is federally documented, then you do NOT get a state title to it.

Originally Posted by StoneCrab

I've been told that if the boat was out of State, ie. owned by me for more than six months, the sales tax thing is not an issue. I've also been told that if I can't prove that I've been registered and paid sales tax in another state, I am liable to Florida for a 6% sales tax no matter how long ago I purchased the boat.

The exact wording of the exemption is, "it shall be presumed that tangible personal property used in another state, territory of the United States, or the District of Columbia for 6 months or longer before being imported into this state was not purchased for use in this state."

The above quote is from Title XIV, Chapter 212.06. The full statute can be found here: Statutes & Constitution :View Statutes : Online Sunshine

It does not say anything about a requirement that the boat be registered, or tax paid, in any other jurisdiction. Only that it must have been "used." So, if you can prove that you have used the boat then you are good.

If the local, county tax person does not understand the law, you could print out the entire statute to show them. Or print the summary here: https://www.floridasalestax.com/docu...Purchasers.pdf You will note that very near the top of the second page, just above the "Specific Exemptions" section, it details the conditions that must be met for use taxes to NOT be due.

Good luck.

[StoneCrab]

Thanks DenverD0n,

I am wondering how these two paragraphs interact.

(7) The provisions of this chapter do not apply in respect to the use or consumption of tangible personal property or services, or distribution or storage of tangible personal property for use or consumption in this state, upon which a like tax equal to or greater than the amount imposed by this chapter has been lawfully imposed and paid in another state, territory of the United States, or the District of Columbia. The proof of payment of such tax shall be made according to rules and regulations of the department. If the amount of tax paid in another state, territory of the United States, or the District of Columbia is not equal to or greater than the amount of tax imposed by this chapter, then the dealer shall pay to the department an amount sufficient to make the tax paid in the other state, territory of the United States, or the District of Columbia and in this state equal to the amount imposed by this chapter.
(8)(a) Use tax will apply and be due on tangible personal property imported or caused to be imported into this state for use, consumption, distribution, or storage to be used or consumed in this state; provided, however, that, except as provided in paragraph (b), it shall be presumed that tangible personal property used in another state, territory of the United States, or the District of Columbia for 6 months or longer before being imported into this state was not purchased for use in this state. The rental or lease of tangible personal property which is used or stored in this state shall be taxable without regard to its prior use or tax paid on purchase outside this state.

Paragraph 7 would seem to speak to the tax paid in another State. In also introduces a measuring contest... who's tax is bigger.

What do you think?

[denverd0n]

The general principle in law is that what was written later has precedence over what was written earlier. So, if paragraph 7 and 8 seem to be in conflict, the provisions in paragraph 8 would prevail.

Personally, I see no conflict. Paragraph 8 simply provides clarification and additional conditions on when use tax is required.

I'm not a lawyer, and I'm not giving you legal advice, but if you have evidence to show that you have owned and used the boat for more than 6 months in another state, then you do not owe any use tax to Florida. That is very clearly stated in the summary document that I linked to above. Print that out, take it with you to the county office, if they demand proof that you paid sales tax already then ask to speak to a supervisor.

[Nicholson58]

There used to also be a feature to the annual water use sticker that reduced it significantly if the boat was older than ??? And had the original power plant. For our 58 footer that would have been big money.

I believe you need only documentation of your ownership more than six months or older. You certainly have registration documents from other states several years back.

[dwedeking2]

Originally Posted by Nicholson58

There used to also be a feature to the annual water use sticker that reduced it significantly if the boat was older than ??? And had the original power plant. For our 58 footer that would have been big money.

I believe you need only documentation of your ownership more than six months or older. You certainly have registration documents from other states several years back.

Yea it drops it to something like $8 a year. And its basically on the honor system, you just sign a paper that says its the original power source

[Seighlor]

Here is the statute that defines Florida's boat registration.

https://www.flsenate.gov/laws/statutes/2011/328.72

If your vessel was not new when you acquired her, suggest you look into registering her as an antique. There is quite a saving with an antique registration.

[BobMc]

You're talking about apples and oranges here! There is a SALES tax when the boat is sold (in some states) and a USE tax when the boat is taken into another state. These terms are used throughout the US - nothing specific to Florida. So you want to be looking for USE tax issues, not SALES tax issues.

In Florida, a SALES tax is due at the time of sale unless the boat is immediately (some leeway here) removed from Florida. If a SALES tax is paid in another state at the time of sale, that amount of tax is deducted from the USE tax which may be due to the state where the boat is re-located. This also is true for most states in the US.

Not sure about the issue you raised about long-term ownership before moving to Florida. The DMV/Tax

Originally Posted by StoneCrab

I couldn't find any info by using the CF Search bar so I'll have to ask.

Scott at Brendan's Isle told me that I'd have to pay a 6% sales tax on my federally documented boat when I register it in Florida. He also said that I'd have to have the registration in hand before booking a flight to Florida to get a drivers license.

I re-read the text regarding this on the Tax Collectors site and could see how it can be interpreted several ways.

The Tax woman also told me that I could do all of this in person in one session. She advised me to schedule an appointment for a "Combo" where they do the boat registration and drivers license in one sitting.

So I'm asking a question here about the sales tax but also trying to memorialize the process in case others are going down the same path.

[dreuge]

PROOF of long term ownership
Since your vessel has been documented for many years, you can get an "Abstract of Title" from the USCG. It will cost you about $25. I did this recently with my vessel just to get prior ownership history. This is an official US government document which will establish the date of your ownership.

Antique Vessel registration in FL
When registering a sailboat older than 30yrs in FL, register it as an Antique Vessel at about $5 for a yearly registration. This is cheaper than what I pay to register my 8ft inflatable dinghy!

FL Tax Collectors issues
In FL, if you have a problem at tax collector's office go to a different tax collector's office (either in the same county or a different county). I bought a title-less dinghy which was registered in another state by the previous owner. One tax collector's office insisted that I could not register it since it did not have a proper title, but the tax collector in the next county took a copy of the previous owner's out of state registration and my bill of sale and titled and registered the dinghy. Yes, I had to pay sales tax, but since I paid $100 for a "title-less" Achilles dinghy, the tax was $6.

I generally prefer the small less populous county tax collectors. Just be sweet and they will most likely be very helpful unless you cop an attitude, then your screwed. Walk away...