Maryland resident buying in Florida help

[garychurch]

You should consider investigating multiple state registration requirements.

Please not the information below directly from the State of Virginia DNR...

Documented Vessels

Vessels documented by the U.S. Coast Guard cannot be titled in Virginia. Though there is no requirement that documented vessels be registered, owners may register them if desired. The registration decals may be useful if traveling to another state that requires display of registration decals. Contact the Department for an application or use the application provided at this site and prominently write “Documented Vessel” at the top.

Watercraft Registered Out-of-State

Watercraft currently registered by the owner in another state and not kept in Virginia for more than 90 consecutive days are not required to be registered in Virginia.

If you read these requirements literally. Park your boat at Occoquan in Prince William County on the Potomac River in Virgina. Only 30 miles from DC. As an aside Prince William County has no property tax on boats.

Smart move to investigate alternative states and counties.

[ranger58sb]

Originally Posted by smj

There’s no personal property tax on boats in Fl., how about Maryland? Could make a difference.

Same in Maryland: up front sales (excise) tax, then only the $20 bi-annual registration fee for USCG documented boats.

MD DOES credit for sales tax paid to FL. Probably works the other way around, too, even though there might be a small difference in the percentages, the caps, or the actual amounts paid.

-Chris

[Cheechako]

Last I heard you can stay 90 days in Florida before tax is due. I'm not sure if you can still store the boat on the hard without paying tax though. It used to be that way... they want the business.
Or stay 90 days in Florida, move the boat to another state for 90 days, repeat as necessary. Save your dockage receipts.
The problem you are going to have though is you need that sticker on your mast/boat or will get stopped eventually. Will, saying "I'm just passing through" be an issue if you are CG documented? Not sure. But technically I think you can get by if passing through.

[Gadagirl]

Originally Posted by garychurch

You should consider investigating multiple state registration requirements.

Please not the information below directly from the State of Virginia DNR...

Documented Vessels

Vessels documented by the U.S. Coast Guard cannot be titled in Virginia. Though there is no requirement that documented vessels be registered, owners may register them if desired. The registration decals may be useful if traveling to another state that requires display of registration decals. Contact the Department for an application or use the application provided at this site and prominently write “Documented Vessel” at the top.

Watercraft Registered Out-of-State

Watercraft currently registered by the owner in another state and not kept in Virginia for more than 90 consecutive days are not required to be registered in Virginia.

If you read these requirements literally. Park your boat at Occoquan in Prince William County on the Potomac River in Virgina. Only 30 miles from DC. As an aside Prince William County has no property tax on boats.

Smart move to investigate alternative states and counties.

From what I've discovered Virginia sales tax is 2% and several counties don't charge personal property tax on boats. Prince William county is one, but it's a way up the Potomac river and a long way from the Chesapeake. Drivable from Annapolis but huge weekend traffic problems. All that said there are weekend destinations on the northern Potomac. But it's not the Chesapeake and I find the area more MV eccentric.

I'm not sure where you live in MD but if you live in southern Maryland you might think to keep it along the northern neck, over the 301 bridge. Colonial beach, Coles Point, Lewisetta, etc. Or even further south like Hampton. Still a drive even from southern Maryland but accessible on weekends?

I'm charging my mind about moving to Maryland based on the taxes charged. So do your homework and make your decision based on your needs.

[zstine]

The coast guard Documentation requires a port of call. This should match the state of registration. The state typically requires an address (marina) where the boat is kept for registration. It doesn't matter where you live, it matters where the boat 'lives'. I kept my boat in RI, tax free and live in NJ.

[redneckrob]

Originally Posted by smj

There’s no personal property tax on boats in Fl., how about Maryland? Could make a difference.

No personal property tax on boats in MD. Once you pay the sales tax it's the something like $20 per year to get a new sticker and that's it.

One note for the OP, don't forget to get a separate bill of sale for your dinghy. MD is going to want it to allow you to register it, and the dinghy does need to be registered.

[denverd0n]

Originally Posted by zstine

The coast guard Documentation requires a port of call. This should match the state of registration.

Should? Only if you want it to. The Coast Guard does not care even one, little bit what you choose for your hailing port, so long as it is a real place.

Moreover, choosing a hailing port in any particular state does not give that state jurisdiction over your boat, nor require you to register it in that state, nor allow that state to levy taxes on your boat. All those things depend on where the boat is actually kept, not what hailing port you put on it.

That said, I have heard that, if you choose a hailing port in California, they may try to come after you for taxes. "Try" being the operative word. They can try, but you don't have to pay them anything, unless the boat was actually in California such that taxes are due.

[Woodland Hills]

Originally Posted by zstine

The coast guard Documentation requires a port of call. This should match the state of registration. The state typically requires an address (marina) where the boat is kept for registration. It doesn't matter where you live, it matters where the boat 'lives'. I kept my boat in RI, tax free and live in NJ.

This is inaccurate: Alzero is owned by a Delaware LLC, registered in Florida and has a documented home port of Morro Bay, California.

[Stmurray62]

I’m a licensed FL yacht broker. Yes, there is a “sales tax” on the vessel transfer. However, FL has the 3 month plus 3 month extension, for non residents, to leave yacht in FL without having to pay tax. Total cost for the “sticker” is $50.00.
I would leave yacht in FL until you are all set up in MD, then move it. Also, I would check long term costs to keep boat in MD vs FL. Congrats on ne yacht, happy sailing...

[smj]

Originally Posted by Stmurray62

I’m a licensed FL yacht broker. Yes, there is a “sales tax” on the vessel transfer. However, FL has the 3 month plus 3 month extension, for non residents, to leave yacht in FL without having to pay tax. Total cost for the “sticker” is $50.00.

I would leave yacht in FL until you are all set up in MD, then move it. Also, I would check long term costs to keep boat in MD vs FL. Congrats on ne yacht, happy sailing...

Are they able to get the sticker if it’s a for sale by owner or do you have to go through a broker to get a sticker. According to Fl law, if purchased from an owner and not a dealer then sales tax is due upon time of sale?

[CharmCityBoater]

Thanks everyone! I am just going to pay taxes in Maryland. Keeps me out of trouble. 5% is not insignificant but the alternatives are either more expensive or too risky. I am not about to break the law, rather be on the up and up.

Thanks

[CapnR]

Since it is a private sale how would the tax collector even know that the boat was purchased? There are no records to that sale other then the Coast Guard transfer.

[BillKny]

Originally Posted by CharmCityBoater

I am purchasing a 43’ sailboat in Jacksonville but live in Maryland. This is a private sale but we are using a title company to manage documentation with USCG. When I sail the boat back to Maryland I know I am supposed to take documentation to the DNR and pay state tax of 5% to get my sticker to place on the base of the mast...

My question... Is it cheaper to just leave the boat in Florida? Would I still pay taxes? Doesn’t Florida have a 6 month period before taxes are due? Any other options I have to avoid taxes?

Thanks

This is of course where a good broker earns what you pay. I know a guy who recently boat a boat, ignored the broker's warning, and ended up paying $18K in tax to Florida that he didn't need to pay--if only he had listened.

Florida sales tax on a boat will be 6%, so you might want to avoid that and pay MD 5% and save the difference. If you pay the tax in Florida when you register your boat in MD you will NOT also owe MD sales tax. As a non-Florida resident, you are not required to pay sales tax on a boat you buy there, provided you VERY CLOSELY follow the rules.

A good summary document is here : https://floridarevenue.com/Forms_lib...t/gt800005.pdf

Read it and FOLLOW IT.

If you screw up and they come after you for tax you SHOULD have paid the interest an penalties will make you cry. If you have any questions, we have found the state tax office to be staffed by competent, helpful people who will give you straight answers and clear guidance. They even return phone calls!

Be very leery of advice you get here. I have seen much bad advice on Florida sales taxes. Note carefully I am not telling you what to do, I am just sending you to the official rules. They are pretty clear...

[smj]

Originally Posted by CapnR

Since it is a private sale how would the tax collector even know that the boat was purchased? There are no records to that sale other then the Coast Guard transfer.

Or state title

[smj]

Originally Posted by BillKny

This is of course where a good broker earns what you pay. I know a guy who recently boat a boat, ignored the broker's warning, and ended up paying $18K in tax to Florida that he didn't need to pay--if only he had listened.



Florida sales tax on a boat will be 6%, so you might want to avoid that and pay MD 5% and save the difference. If you pay the tax in Florida when you register your boat in MD you will NOT also owe MD sales tax. As a non-Florida resident, you are not required to pay sales tax on a boat you buy there, provided you VERY CLOSELY follow the rules.



A good summary document is here : https://floridarevenue.com/Forms_lib...t/gt800005.pdf



Read it and FOLLOW IT.



If you screw up and they come after you for tax you SHOULD have paid the interest an penalties will make you cry. If you have any questions, we have found the state tax office to be staffed by competent, helpful people who will give you straight answers and clear guidance. They even return phone calls!



Be very leery of advice you get here. I have seen much bad advice on Florida sales taxes. Note carefully I am not telling you what to do, I am just sending you to the official rules. They are pretty clear...

And here’s the rule he will have to follow if buying directly from an owner I believe.

“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.”
It’s always been my understanding having purchased numerous boats in Florida that if you purchase from an owner and not a dealer you are liable for Fl sales tax, whether keeping the boat in Florida or removing it. Now whether or not Fl will catch you or can prove anything is another subject.