Texas to Florida boat sale question

[cpisz]

I am considering purchasing a boat in Texas and bringing it to Florida. Will I be double taxed when I register in Florida? I understand that if I keep the boat in Florida for more then 3 months that I need to register with Florida and pay use tax. Texas sales taxes are high and so is Florida. This is a big double whammy

[GreenWave]

Doubtful you will pay twice. How long will you keep it in a Texas? I just did something close to this in reverse and didn’t have to pay sales tax in the state where I bought the boat. I did pay to Texas when I got it there.

[SVHarmonie]

No, you do not get hit for the same tax twice. If Texas is (say) 5.5% tax, and Florida is 6%, the only difference you pay when you bring the boat to Florida is 0.5%

[bstreep]

Just a qualifier: Texas and Florida both have caps on how much is taxable. Not sure where each sits, but if you buy a high $$ vote, it is limited. I think Texas is around $12K in tax.

[Dsanduril]

Florida has a 6% state sales tax that is calculated up to a maximum tax of $18,000 (i.e. 6% on boats up to $300k purchase price). Some localities in Florida have an additional discretionary surtax, by state law the surtax (at whatever rate) may only be charged on the first $5000 in sales price.

Use tax and surtax are not due on boats brought to Florida if you meet all of the following conditions:

• You own the boat six months or longer, and

• You have shown no intent to use the boat in Florida at or before the time of purchase, and

• The boat has been in use six months or longer within the taxing jurisdiction of another state, U.S. territory, or the District of Columbia. Time spent in foreign waters does not count as part of the six-month period.

If you bring your boat into Florida within six months of purchase Florida will assume that purchase out of state was for the purpose of avoiding taxes (active duty military and a few other exemptions). In that case, if you can prove you paid sales/use tax at the time of sale they will generally credit you the amount of tax paid against the tax due in Florida.

Credit for Tax Paid
A credit against any Florida sales and use tax or surtax due on a boat is allowed to any purchaser who provides documentation that a like tax has been lawfully imposed and paid to another state, territory of the United States, or District of Columbia.

Example: If you purchase a boat in a state that has a sales tax rate of 4 percent, you must pay an additional 2 percent when you bring the boat into Florida, plus any applicable discretionary sales surtax. The maximum tax of $18,000 will apply.

If you will be in Florida less than 90 days then you can generally avoid the registration and tax questions. However, if you have intent to remain in Florida you get only 10 days - intent is shown by registering a child in school, starting a job, registering for a homestead property tax exemption, or registering to vote in Florida.

[gonesail]

you should register the boat in Texas and transfer this to Florida .. with proof that you paid the Texas taxes. Good luck.

[cpisz]

Thanks everyone for the responses. I see now in the Florida statutes that I would only pay the difference between to two states. What is the advantage of registering in Texas if I love in Florida? One person suggested that.

[Dsanduril]

Originally Posted by cpisz

Thanks everyone for the responses. I see now in the Florida statutes that I would only pay the difference between to two states. What is the advantage of registering in Texas if I love in Florida? One person suggested that.

There is no advantage if you live (love?) in and use the boat in Florida. You will have to pay registration in Florida anyway. Best would be to see if you can avoid registration in Texas (by removing the boat from Texas) otherwise you're going to pay registration fees twice - Florida will grant you some tax relief, but fees, while not huge, are a whole other matter.

[EmeraldCoastSailor]

I brought my boat from TX 5 years ago after owning it in TX for 6 years. I didn't have to pay an outrageous tax bill but of course I do have it registered (even though it is USCG documented). I can't recall if they inquired about when I bought it.