Registration and Title in US

[skipmac]

Originally Posted by bottomend

Yea. remember reading that Snipes included a 15000 Amex credit card bill in his bankruptcy and thaought he could have ran that amex bill higher . Yea, USA citizens must report their worldwide income and all that jazz. However simple boat registration is not a big deal. My family has aunts,uncles and cousins in the USA and i know how much paranoia they feel. However as i said earlier any Delaware LLc/corp agent can open a company for a non-usa resident and that company can purchase assets. Assets can be apartment buildings.yachts etc. All sibject to Delaware llc rules.My uncle had a delaware registered yacht in florida from 1981 to 2001 without a hassle but maybe he was paying off the inspector. I dont know.

No, simple boat registration is not a big deal. Said so in the first post.

Maybe you should be clear on what you are talking about and what taxes you are referring to.

FL has no taxes on a boat except the sales tax levied on the original purchase. If you keep the boat in Florida and are not exempt for the reasons already mentioned you will have to pay the sales tax. Doesn't matter if you have a corporation in Delaware or on Mars.

If you keep the boat in FL over 90 days and it is a US documented or registered vessel you are required by FL law to register in FL. This is not technically a tax but a registration fee. That is no big deal, might cost you $200.00. Yes if you hide and lie about it you might not get caught. But why worry about $200.

Other that that there are no property taxes, ownership taxes or anything else on a boat in FL so why go through the whole Delaware corporation? It gets you nothing. Just obey the law, pay as little as you legally can and you don't have to be paranoid.

Maybe you need to read the OP's questions and address what they are asking. This has nothing to do with income tax, world wide reporting, secret corporations or anything else. Simple question about what is required to register a boat in FL.

[skipmac]

Originally Posted by savoir

The same happens in California where State employees walk the docks writing down boat details to check against tax records. I've seen them.

Rhode Island is the cheapest on the East Coast. You will pay state registration fees but no taxes.

Love RI. I have a second residence there. When I bought my boat in NY I moved it to RI, registered there and kept it there and legally did not have to pay sales tax.

[savoir]

I probably should add that Florida use tax is a one off thing whereas places like Connecticut or California charge annually. On top of that you get credit for tax paid to other states. Say you buy in California where tax in coastal places averages around 8.5%, then your Florida use tax wll be zero.

Karis needs to check the tax history of the boat with the broker. If Florida sales or use tax is already paid then keeping the boat there will incur no tax only licence fees.

[Dsanduril]

As said in the first response, as a foreigner you will have to go with state registration. Each state has different rules, usually handled by the state department of motor vehicles. For Florida in particular, you can get the information here:

FL Boat Owner's Guide

Registration fees are paid annually, the fee schedule is here (as well as in the guide):

Annual Fees

Other states have other rules. If your vessel is in California for longer that six months, for instance, you are required to pay personal property tax at the rate of 1% of the value of the boat per annum. Doesn't matter who owns the boat, where it is registered, etc. California's position is that if you are in the state for that long, using the state's "facilities" you have to pay the freight. Each and every state is a little different. If you are simply going to keep the boat in Florida, or only visit other states for brief periods then you only need concern yourself with Florida regulations. If you move the boat to another state (and that includes if the state in question considers you to have moved the boat there, regardless of your intent) you will have to review the regulations for that state.

[skipmac]

Originally Posted by savoir

Karis needs to check the tax history of the boat with the broker. If Florida sales or use tax is already paid then keeping the boat there will incur no tax only licence fees.

Sorry to report that this would not be the case. Every time a boat is sold the new owner has to pay the sales and use tax on the sales price of the boat. Does not matter if the boat has been bought and sold in Florida numerous times every new sale is taxable.

[Greenhand]

Originally Posted by skipmac

Sorry to report that this would not be the case. Every time a boat is sold the new owner has to pay the sales and use tax on the sales price of the boat. Does not matter if the boat has been bought and sold in Florida numerous times every new sale is taxable.

However, there are a number of states that charge a percentage tax every year when renewing your registration. This is what was being referred to.

[skipmac]

Originally Posted by Greenhand

However, there are a number of states that charge a percentage tax every year when renewing your registration. This is what was being referred to.

That may be the case but that is not what I was referring to. I was responding to this statement that specifically addresses the situation in Florida.

Originally Posted by savoir

I probably should add that Florida use tax is a one off thing whereas places like Connecticut or California charge annually. On top of that you get credit for tax paid to other states. Say you buy in California where tax in coastal places averages around 8.5%, then your Florida use tax wll be zero.

Karis needs to check the tax history of the boat with the broker. If Florida sales or use tax is already paid then keeping the boat there will incur no tax only licence fees.

[Greenhand]

Sorry, I totally missed that bolder part and focused in on the true statement that some states have one time taxes (per owner!) while others have repeating annual taxes.

[skipmac]

Originally Posted by Greenhand

Sorry, I totally missed that bolder part and focused in on the true statement that some states have one time taxes (per owner!) while others have repeating annual taxes.

Yes, I had to deal with that years ago when I lived in GA. Had to pay an annual ad valorem tax on my boat and hear that is done it a lot of places. From a lot of research it seems the cheapest place on the east coast to own a boat is RI. No sales tax when you buy it, no annual tax on the value of the boat and reasonable charges for registration. Now docking or mooring costs are a whole different matter.

[denverd0n]

Originally Posted by bottomend

However as i said earlier any Delaware LLc/corp agent can open a company for a non-usa resident and that company can purchase assets.

Yeah, so? You're suggesting that the OP should spend the time and money to create the LLC, and then he would STILL have to pay the sales tax when he buys the boat in Florida, and the registration fees to keep it there. Creating an LLC, in this case, is a complete and utter waste of time. It provides absolutely no benefit at all.

The OPs question was answered quite completely in the very first response. This nonsense about creating an LLC only serves to confuse the issue.

[Just a Tinch]

Originally Posted by bottomend

Simply put, remember with a Delaware LLC the owner of the boat is a corp. and that is where the trail ends. The corp/LLC is only subject to the laws of Delaware LLCs/corp. so whoever is onboard is of no concern, Actually know of people who have done this and keep their boats in florida most if not over 90 days of a calender year.Of course this is a tax loophole that Florida authorities probably want to sink.

No it is not the end of the trail. I owned a DE LLC...I was in FL, operated in FL, and so had to comply with FL laws regarding the payment of taxes, as well as covering my employees with workers compensation coverage. I was taxed by local taxing authorities.

If a boat is on or in FL waters....and is not "in-transit" actively....it is subject to paying a registration fee. Even if the boat is owned by a private person or DE LLC.... and it is in FL 91 days....it is subject to registration and the fees applied thereto. That includes "documented vessels"...as I own one of them and pay a registration fee to the state of FL...in my case about $6.25 a year....instead of a much higher one, due to the fact that my boat is more than 30 years old and has its original propulsion....so it is an "antique vessel". I am also a FL resident so I paid sales tax on my trawler when I bought in Maryland...and the sales tax was paid to Florida. If I had kept the boat out of FL more than 90 days...it would not have mattered....I would have still had to pay when the boat entered FL. In that event it would be classed as a "use tax".

Trust me on this...you might get away with it, you might not...but unless you are constantly one the move...staying no more than a couple of days in one place...do not be surprised if a water cop checks you out.... FL is hungry for revenue....and while they do not want to upset cruisers, they don't mind upsetting people who are evading due payment of taxes and fees.

We recently moved from Halifax Harbor Marina in Daytona Beach...and before we left...the local Sheriff's water unit was in the marina checking the registration stickers on every boat there.....and doing some writing...

Feel free to call the Department of Revenue in Tallahassee.... its a free call: FL Dept Rev - General Tax Administration Customer Service

[Just a Tinch]

Originally Posted by skipmac

Sorry to report that this would not be the case. Every time a boat is sold the new owner has to pay the sales and use tax on the sales price of the boat. Does not matter if the boat has been bought and sold in Florida numerous times every new sale is taxable.

skipmac.....you are 100% correct.

There are only two occasion where a private individual will escape FL sales or use taxes: 1, the boat leaves Florida immediately with a non-resident of FL., with a possible 90 day extension for labor in a yard.
2, if the purchaser involves a "trade-in".....for instance, a sailboat valued at $XX is traded in on a trawler costing $XX, with $XX being equal...then there is no sales tax, because the purchase price was actually zero.

[Sand crab]

So, if you document the boat but are putting it in corporation how do the authorities go about proving citizenship.

[Cheechako]

To register a boat 3 years ago in FLorida, I had to prove an actual address in Florida. It's a catch 22: If you stay over 90 days you need to pay the tax, If you dont have an address you cant register.... HUH?

[skipmac]

Originally Posted by Just a Tinch

skipmac.....you are 100% correct.

There are only two occasion where a private individual will escape FL sales or use taxes: 1, the boat leaves Florida immediately with a non-resident of FL., with a possible 90 day extension for labor in a yard.
2, if the purchaser involves a "trade-in".....for instance, a sailboat valued at $XX is traded in on a trawler costing $XX, with $XX being equal...then there is no sales tax, because the purchase price was actually zero.

Was not aware of the trade in exemption. Guess it has never been an issue for me.

There is one other way that you can be legally exempt from FL sales and use tax. Boat is purchased out of state for use out of state and registered out of state and not brought to FL for at least six months. In my case I was living in RI and FL, bought a boat in NY and registered and kept the boat in RI. After a year I did bring it to FL for an overhaul but will be heading back north as soon as I launch.