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CharmCityBoater · 11-03-2021, 20:01

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

CharmCityBoater · 11-03-2021, 20:12

I should add that I will only be in Maryland for 1 more year then will move aboard and cruise full time. Options for residency?

ranger58sb · 12-03-2021, 04:58

MD excise tax for boats is capped at something like $15-15.5K, something like that, if it matters. Might be worth comparing to FL (for example) sales tax.

The MD "registration" sticker for a USCG documented boat is IIRC $20 every two years. That's not the same as the sales (excise) tax. OTOH, it's also no biggy, and you're right that you'd do both of those at the same time... if you have the USCG documentation in place by the time you start the MD process.

FL has a grace period, but I'm not sure what it is. Might be 90 days, but you can get better info...

Hurricane season in FL will matter to your insurance company. And to get insurance in FL, you'll need a "hurricane plan" -- which isn't all that difficult to write, but might be difficult to execute if you're not there and the boat's in the water. And I'm told in many places you have to reserve (and pay for) haul-out in advance, etc.

Not sure about other States, but once you've paid up initially in MD, the recurring $20 fee is chump change. Some folks avoid other kinds of taxes (state income, sales, etc.) by changing residency to other states (DE, for example)... And your residency isn't the same as the boat's residency; if you keep the boat on the Chesapeake you'll still owe the excise tax no matter where you actually live.

But boating on the Chesapeake is very decent compared to some of the other likely places (Delaware Bay?)... so keeping the boat in MD can still be an OK choice, depending on what your future cruising plans will be.

-Chris

BCCLover · 12-03-2021, 05:17

The other thing to check if you're comparing costs is the cost of insurance when keeping it in Florida for a chunk of time vs Maryland. Boat insurance has gotten difficult and very expensive.

Bill O · 12-03-2021, 05:58

Choose where you want to pay a tax, either Fl or Md. It may be easier than trying to dodge the tax man and possibly getting extra fees if you get caught. If you eventually want to get it registered in Fl, they may want to see an official tax document that you paid taxes somewhere else.

Bringing it back up to Md would give you a chance to use it more, then see what repairs/mods are needed to fit your usage. If you keep it less than 6 mo. in Md, then you don't have to pay a tax/register the boat in Md.

From my own recent research, if your boat has no state registration (yes I know it's documented, but most states want it "registered"), Fl doesn't have to allow you the 90 day courtesy to stay in Fl w/o paying something or you could be ticketed.

Do your own research to determine your best plan.

smj · 12-03-2021, 06:33

Here’s the tax laws for Florida.

https://floridarevenue.com/Forms_lib...rrent/gt800005.

flyingfin · 12-03-2021, 06:47

Quote:

Originally Posted by smj

Here’s the tax laws for Florida.

https://floridarevenue.com/Forms_lib...rrent/gt800005.

Link is not working,,,,,, try this onehttps://floridarevenue.com/Forms_lib...t/gt800005.pdf

smj · 12-03-2021, 06:50

Quote:

Originally Posted by flyingfin

Link is not working,,,,,, try this onehttps://floridarevenue.com/Forms_lib...t/gt800005.pdf

Thanks, somehow I deleted the pdf at end of link.

denverd0n · 12-03-2021, 07:57

Florida sales tax is 6%, capped at $18k. If the sale goes through a broker, then there is a 90 day grace period. If it is a private sale, then there is no grace period (although, I have never heard of anyone getting caught if they move the boat out of the state immediately -- doesn't mean you CANNOT get caught, just that I haven't heard of it).

If your long-term plan is to keep the boat in Florida, then I would just pay the tax and register it there. Seems like too much effort to try to quickly move it to MD, then eventually move it back, just to save 1%. If the long-term plan is to keep it in MD, then I would move it out immediately, and hope for the best.

Good luck.

Bill O · 12-03-2021, 08:00

Quote:

Originally Posted by smj

Here’s the tax laws for Florida.

https://floridarevenue.com/Forms_lib...rrent/gt800005.

Good document.

If I'm reading it correctly, because the OP purchased the boat through a private party, they now only have 20 days to stay at the dock before they are in jeopardy.

That said, if the boat isn't underway and was a general fixture of that dock, I'm thinking it would be a very low probability that anyone would make a fuss of it being there more than 20 days w/o paying Fl taxes.

To the OP, what is the current turn around for CG documentation?

Fiftybucks · 12-03-2021, 08:32

I just did the documentation and took 4.5 months to get the paper, but there the USCG has a link where you can check the status of your request.

I faced the same situation. My recommendation is to plan immediate movement of the boat up to MD. I ended up with some boat problems paid for extended 180 day waiver, 450 which was not applied towards the final FL sales tax. Nothing against FL. They have been good to work with, but they DID find my boat, and placed Blue State Tax Stickers on the portlights... After the boat had been moved the first time from Bradenton now in Titusville FL. They do watch. They also have movement info if you are in the ICW at Bridges. Penalties are about 1% per day.

Woodland Hills · 12-03-2021, 08:56

If you plan on living aboard full time it is difficult to avoid spending more than 90 winter days in Florida. You can buy up to 180 days exemption, but if you miss a payment date, you are liable for taxes and they don’t fool around here. We just bit the bullet and continued the Florida registration when we bought.
In our experience, we move from state to state in the summer as we cruise the coast, but in the winter we find a warm place in South Florida and stay there until spring.

Also, I am pretty sure that being documented does not mean Florida cannot come after you for taxes and registration if you are there beyond a certain number of days...... In our case we are a documented vessel that is Florida registered as an antique boat (over 30 years old) and we pay $60 a year to avoid all the hassles.

mvmojo · 12-03-2021, 09:13

Although it will cost you 1% more, you might want to consider paying the 6% Florida sales/use tax and registering the boat in Florida. As I understand it, when you bring it to Maryland, they will require you to register it in Maryland but will give you credit for the sales tax you paid in Florida so the only cost will be a nominal registration sticker fee. This leaves you free to relocate the boat to Florida and keep it there full time or use it there for any portion of the year without dealing with their temporary cruising permits, etc.