[FL] Sale of a USCG documented boat, buyer didn’t transfer into his name

[smj]

Originally Posted by Shrew

Makes sense. The only boat I bought in Florida was as a non-Florida resident, and the vessel was removed from the state, which rendered it exempt from taxes.

Even if you were a nonresident and removed the vessel from Florida you would still owe taxes unless purchased through a boat dealer. In other words any vessel located in Florida that is sold by owner, not a dealer is required to pay sales/use tax.
Least that’s the way I read the laws.

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

[Lee Jerry]

Originally Posted by smj

Even if you were a nonresident and removed the vessel from Florida you would still owe taxes unless purchased through a boat dealer. In other words any vessel located in Florida that is sold by owner, not a dealer is required to pay sales/use tax.
Least that’s the way I read the laws.

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

I don't think so. From the referenced pdf: "...is due on a boat used or stored in Florida when..."

So if not used or stored in Florida, then no tax due.

[smj]

Originally Posted by Lee Jerry

I don't think so. From the referenced pdf: "...is due on a boat used or stored in Florida when..."



So if not used or stored in Florida, then no tax due.

I’ve been through this when we sold a boat in Florida. The purchaser had to pay a broker to handle the sale and then get him to issue a permit which gives the buyer a certain amount of time to leave the state.
I believe this was recommended by a Florida based documentation company as the only way the purchaser didn’t legally owe Florida sales tax.
I’m also sure there are countless people that don’t do this but never get caught.

[Chsbrosm]

Update:
I did get the call yesterday… from USCG to inform me that FWC called them looking for the owner and they gave them… my name, which is really frustrating since the National Vessel Documentation Center (part of USCG) has the new owner on file. But it turns out that USCG field stations do not have the same info in their system and report out the last “managing owner on file”, which is me.

I got the number of FWC officer, called him and described the situation, followed by emailing all the documents proving that I sold the boat in February. He responded:
I have received all the documents and am able to view them all. These are exactly what I needed, thank you for getting them to me so quickly. It shows you sold the vessel on February 23rd 2023 so the new owner is responsible. If anyone contacts you regarding the accident you can say you spoke to officer *his name*.


So hopefully this is enough to get the LEOs go after the new owner who caused all this mess.

[Bobby Lex]

Thanks for the update. This is a cautionary tale for sure. One without an easy preventative solution. (Unless you plan to escort the buyer to the tax collector's office to make sure he registers the vessel, which is unlikely for a myriad of reasons).

Bob

[Striker]

Was this vessel a green double ender?

[Chsbrosm]

Originally Posted by Striker

Was this vessel a green double ender?

No, it was a large sailboat.

[Chsbrosm]

Originally Posted by Bobby Lex

Thanks for the update. This is a cautionary tale for sure. One without an easy preventative solution. (Unless you plan to escort the buyer to the tax collector's office to make sure he registers the vessel, which is unlikely for a myriad of reasons).

Bob

Right… somehow I feel like it’s not the end of the matter. I can imagine that the new owner, when found will try to make some stories up to avoid responsibility etc. so I am expecting further inquiries unfortunately

Luckily all papers were signed in front of the notary so at least he doesn’t have the option to just deny ever getting the boat or whatever.

I hope it all ends without me being on the hook for this BS…

[Chotu]

Originally Posted by Lee Jerry

I don't think so. From the referenced pdf: "...is due on a boat used or stored in Florida when..."

So if not used or stored in Florida, then no tax due.

You didn’t read this correctly.

SMJs interpretation is accurate

[Lee Jerry]

Originally Posted by Chotu

You didn’t read this correctly.

SMJs interpretation is accurate

It certainly could be written more clearly, but I remain unconvinced.

If you look at the "When is Tax Due" section, it says:
"Florida use tax, plus any applicable discretionary sales surtax, due on a boat purchased in Florida or brought into Florida within six (6) months of the date of purchase, is paid at the time of licensing, titling, or registering the boat in Florida."

If you buy a boat and take it out of the state, then you don't register in FL, so when do you pay the tax?

[Bobby Lex]

BTW, this kind of situation doesn't happen only with boats....

A friend of mine traded in his car at a dealer. A couple months later he got a "demand" letter from a lawyer. It seems that the dealer had never re-registered the car. He let a customer take the car out for a test drive and the customer was involved in a multi-car wreck. State records showed the car still belonged to and was registered to my friend -- so at least on paper he was on the hook for the damage.

Fortunately, the dealer stepped up and accepted responsibility. But not until after a great deal of alarm and worry for my friend and his wife.

Bob