FL Sales Tax

[Hoosiersailor]

Does anyone have any knowledge or understanding of the FL tax laws on boat sales? I am getting ready to close on the boat. We plan to store her at the yard for around 60 days. We will be doing some work on her but not sure if that will be in early May or later closer to putting her back in the water. We will be exiting FL waters well within 90 days of closing. The people managing the paperwork has recommended using the 20 day repair exemption rather than the 90 day exemption but can't really give me a reason why. From the way the exemption is written, the boat could be "worked on" for 20 years and remain in FL. I guess it is being recommended since there is no requirement to provide receipts of the work and FL will have no way of actually knowing when the work was complete. If for some reason the boat breaks on the way up the ICW, the 20 days gets suspended while fixing the boat. I am NOT trying to circumvent any taxes or do anything shady. Just trying to pick the right check box on the Exemption letter. The broker has told me that really no one cares and it isn't strictly enforced but I'm not so sure and want to do it right.

Any thoughts?



gt500003.pdf

gt800005.pdf

[Kettlewell]

If it's over 5 net tons you should go for the 90-day exemption:

The nonresident purchaser must meet the following requirements:
➢ The nonresident purchaser must sign an affidavit stating that he or she has read the law and rules
regarding the specific exemption claimed and agrees to remove the boat from Florida. A suggested
format for the required affidavit is provided in Rule 12A-1.007(9), Florida Administrative Code
(available at flrules.org).
• A boat of less than 5 net tons of admeasurement must leave Florida within 10 days of purchase or
immediately be placed in the care, custody, and control of a registered repair facility for repairs,
additions, or alterations. The boat must leave Florida within 20 days after completion of the repairs.
• If the boat is 5 net tons of admeasurement or larger, the purchaser may obtain a set of Florida
Department of Revenue boat decals, which authorize the boat to remain in Florida waters up to 90
days after the purchase. This period may be extended to 180 days with the purchase of a 90-day
extension decal. The decals must be obtained from the selling dealer or broker.

https://floridarevenue.com/Forms_lib...t/gt800006.pdf

[Hoosiersailor]

At first I thought that with the boat being larger than 5 tons, I had to do the 90 day decal. However, I looked up the FL statutes and it clearly states:

f. Unless the nonresident purchaser of a boat of 5 net tons of admeasurement or larger intends to remove the boat from this state within 10 days after the date of purchase or when the boat is repaired or altered, within 20 days after completion of the repairs or alterations, the nonresident purchaser applies to the selling dealer for a decal which authorizes 90 days after the date of purchase for removal of the boat. The nonresident purchaser of a qualifying boat may apply to the selling dealer within 60 days after the date of purchase for an extension decal that authorizes the boat to remain in this state for an additional 90 days, but not more than a total of 180 days, before the nonresident purchaser is required to pay the tax imposed by this chapter. The department is authorized to issue decals in advance to dealers. The number of decals issued in advance to a dealer shall be consistent with the volume of the dealer’s past sales of boats which qualify under this sub-subparagraph. The selling dealer or his or her agent shall mark and affix the decals to qualifying boats in the manner prescribed by the department, before delivery of the boat.

So I am not really sure

Statutes & Constitution :View Statutes : Online Sunshine

[Kettlewell]

I am not an expert on Florida tax rules, but the Florida Revenue site sure makes it look like they interpret it as meaning boats of 5 net tons and up need to go for the 90-day exemption. Maybe you should call them? Though, in my experience, you don't always get accurate information even direct from the agency involved.

[Hoosiersailor]

Originally Posted by Kettlewell

I am not an expert on Florida tax rules, but the Florida Revenue site sure makes it look like they interpret it as meaning boats of 5 net tons and up need to go for the 90-day exemption. Maybe you should call them? Though, in my experience, you don't always get accurate information even direct from the agency involved.

I agree. I am certainly not an expert either and for something that I thought would be relatively straight forward sure is getting complicated. I had planned to do just the 90 day exemption, then the paper work lady indicated to me that they have had discussions with FL Dept of Revenue and they recommended using the 20 day repair exemption

[S/V Illusion]

Why ask for opinions here from strangers when you can get actual answers you can rely on from the Florida tax office?

[Hoosiersailor]

Originally Posted by S/V Illusion

Why ask for opinions here from strangers when you can get actual answers you can rely on from the Florida tax office?

Well mostly I thought that there might be a possibility that someone on this board had just gone through this.

[GreenWave]

Where is your final home for this boat? You are going to pay tax one place or another so pay it where it will be the smallest amount. If you pay to Florida then you can file that in your new home location for exemption. Unless you are going to California.