Florida

[scargo]

Originally Posted by cooper1991

As a British passport holder, if I go to buy a 40ft boat in Florida, what taxes MUST I pay and what taxes/costs can I avoid? Is there a way to register in Delaware and pay no tax?

I plan to stay in FLorida area for 6 months - 1 year.

Buy a boat from a broker and register her in the UK.
Here are the rules:
https://floridarevenue.com/Forms_lib...t/gt800006.pdf


BTW, a lot of Canadians buy boats in FL and register them in Canada and they don't pay tax. When US citizens come sailing in Canada to escape hurricane season, we don't tax their boats. It's called temporary import.

[Shanachie]

The tax man is certain to get you no matter where you go.


Europe charges a 20 percent (!) VAT on boat sales. Seeing as Britain is no longer in the EU, the circumstances may have changed. But I suspect it still has a hefty VAT.


If and when you return to Britain with the boat, the tax man will be waiting to collect. Buying the boat in another country does not relieve you of the obligation.



You need to investigate whether a sales tax paid in the U.S. will be deducted from the VAT.


What others are saying about the U.S. is correct. Depending on which agency stops you, sailing an unregistered boat could get you an early boot from the country.

[goboatingnow]

The U.K. has VAT and its rules are the same as when it was in the EU ( it basically signed all the existing EU law into domestic law )

But I suspect the OP knows this

Right now the cheapest place is to go to the EU and buy a Vat free boat. Keep it in the EU and remove it 1 day every 18 months.

23% of a lot is a lot

[Marinarius]

Here is some info. According to this, you could sail to USVI and pay no tax. Other states nearby are less costly.


https://boattax.com/avoid-boat-taxes/

[boatman61]

I bought a boat in N Carolina, a private sale notarised in the sellers bank.
Paid no tax, but then again I did go the SSR route.
If you want to avoid taxes, buy in the US, register in the UK and keep her in the Med.. a quick trip to N Africa or Turkey every 18mths and all is good.
Assuming you'd want to take her East after the years up that is..

[Montanan]

FYI, Reference:

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

Who Must Register to Collect Tax?

Any person or business that sells, offers for sale, or imports boats into Florida for sale at retail must register with the Florida Department of Revenue as a boat dealer. A boat broker offers boats for sale, but may not
have the boats in their possession. Boat brokers are also required to register with the Department as a boat dealer.
You can register to collect and report tax through the Department’s website at floridarevenue.com/taxes/registration. The site will guide you through the registration application to help you determine your tax obligations. If you do not have internet access, you can complete a paper Florida Business Tax Application (Form DR-1).

What is Taxable?
Sales and Use Tax

All boats sold, delivered, used, or stored in Florida are subject to Florida’s sales and use tax, plus any applicable discretionary sales surtax, unless exempt. Florida boat dealers and brokers are required to collect tax from the purchaser at the time of sale or delivery.

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. The “use” part of Florida’s sales and use tax provides uniform taxation of items. Florida’s 6% use tax, plus any applicable discretionary sales surtax, is due on a boat used or stored in Florida when:
• The boat is purchased from a person who is not a registered boat dealer and the sale or delivery of the boat occurs in Florida;
• The boat is purchased in another state, a territory of the United States, or the District of Columbia and is brought into Florida within six (6) months of the purchase date; or
• The boat is purchased in a foreign country and is brought into Florida at any time.
When the purchaser does not pay Florida sales and use tax to the seller for a boat purchase, any sales and use tax, plus any applicable discretionary sales surtax, is paid to the county tax collector, licensed private tag agency, or the Department of Highway Safety and Motor Vehicles when registering the boat in Florida.
Further reference: https://floridarevenue.com/Forms_lib...t/gt800006.pdf


Discretionary Sales Surtax

Most counties impose a local option discretionary sales surtax. The surtax is due when the boat is delivered by the dealer or broker into a county that imposes a surtax or when the use of the boat occurs in a county imposing a surtax. Discretionary sales surtax applies to the first $5,000 of the purchase price. Current discretionary sales surtax rates for all counties are listed on Form DR-15DSS, Discretionary Sales Surtax Information, posted at floridarevenue.com/forms in the Discretionary Sales Surtax section.

Maximum Tax

The maximum tax on the sale of a boat or vessel is $18,000. This includes both sales and use tax and discretionary sales surtax. For more information and detailed instructions on this maximum tax, see Tax
Information Publication (TIP) 10A01-07 issued on June 22, 2010, at floridarevenue.com/taxes/tips.
The maximum tax on the repair of a boat or vessel is $60,000. This cap is to be applied to each boat repair occurring in Florida. Subsequent and separate repairs are each subject to their own $60,000 cap

When is Tax Due?

Returns and payments are due the first day of the month and late after the 20th day of the month following each reporting period, whether you are filing monthly, quarterly, twice a year, or yearly. If the 20th falls on a Saturday, Sunday, or state or federal holiday, returns and payments will be timely if they are postmarked on the first business day after the 20th. Florida law requires you to file a tax return even if you do not owe sales and use tax.

Electronic Filing and Payment
We offer the use of our free and secure website to file and pay sales tax at
floridarevenue.com/taxes/eEnroll.


Penalty and Interest
• Penalty – If you file your return or pay tax late, a late penalty of 10 percent of the amount of tax due, but not less than $50, may be charged. The $50 minimum penalty applies even if no tax is due. Penalty will also be charged if your return is incomplete.
• Interest – A floating rate of interest applies to underpayments and late payments of tax. Current and prior period interest rates are posted at floridarevenue.com/taxes/rates.


Specific Exemptions

Boats Sold to Nonresidents

A boat sold by or through a registered dealer or broker to a purchaser who is a nonresident of Florida at the time of taking delivery of the boat in Florida is exempt. This exemption applies to the sale of a boat, including any accessories, but does not apply to the sale of a boat trailer.
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.
• 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.
 Within 30 days of the date of sale, the dealer or broker must provide the Department with a copy of the invoice, bill of sale, and/or closing statement, and the original signed affidavit provided by the nonresident purchaser.
 Within 30 days of removing the boat from Florida, the nonresident purchaser must furnish the Department with proof that the boat left Florida. Receipts for fuel, dockage, or repairs purchased outside Florida must identify the boat.
 Within 90 days of removal, the nonresident purchaser must provide the Department with written documentation evidencing that the boat was documented, licensed, titled, or registered outside Florida or documentation that the nonresident purchaser has applied for documentation, licensing, titling, or registration of the boat.

This exemption does not apply to a Florida resident, an entity in which the controlling person is a Florida resident, or a corporation in which any officers or directors are Florida residents.

Hope you will enjoy your boat.

[Montanan]

A further useful and authoritative reference:

https://www.floridasalestax.com/docu...Purchasers.pdf

[Wilyum]

Originally Posted by Montanan

FYI, Reference:

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

Specific Exemptions

Boats Sold to Nonresidents

A boat sold by or through a registered dealer or broker to a purchaser who is a nonresident of Florida at the time of taking delivery of the boat in Florida is exempt. This exemption applies to the sale of a boat, including any accessories, but does not apply to the sale of a boat trailer.
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.
• 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.
 Within 30 days of the date of sale, the dealer or broker must provide the Department with a copy of the invoice, bill of sale, and/or closing statement, and the original signed affidavit provided by the nonresident purchaser.
 Within 30 days of removing the boat from Florida, the nonresident purchaser must furnish the Department with proof that the boat left Florida. Receipts for fuel, dockage, or repairs purchased outside Florida must identify the boat.
 Within 90 days of removal, the nonresident purchaser must provide the Department with written documentation evidencing that the boat was documented, licensed, titled, or registered outside Florida or documentation that the nonresident purchaser has applied for documentation, licensing, titling, or registration of the boat.

This exemption does not apply to a Florida resident, an entity in which the controlling person is a Florida resident, or a corporation in which any officers or directors are Florida residents.

Hope you will enjoy your boat.

OP this part applies to you, 180 days to refit, then its off to Bimini for a stay. How long before you can return to Florida and apply for a cruising permit would be my next question…

[Shanachie]

I could be way off base, but I get the feeling that the OP has been taken in by the popular Internet/Youtube meme that says you can buy great older sailboats in Florida for next to no money and go cruising on the cheap.



All I can say is that if that's the case, you need to be very careful in how you proceed.


Yes, there are many old sailboats available in Florida, but they are ... old sailboats that have spent many years in the subtropics, which age a vessel much more quickly than colder climates.


I went boat shopping three years ago, and I could fill pages telling you about all of the hopeless junk I saw.



Yes, you can find good deals that need some work. I "stole" my current sailboat for 22.5K, then put another 25K into it to make right all of the things that the PO had neglected.


I'm assuming that the time in Florida is to refit the sailboat you buy. You need to know that it is expensive to refit any sailboat, but particularly in Florida.


Boat yards are somewhat scarce and usually expensive. Many don't allow DIY. Labor charges are $75 to $125 an hour. It can add up so quickly that it will make your head spin.


And, again, many of these inexpensive sailboats are at the end of their useful lives and more suited for day sails and coastal cruising than heading off across the Atlantic.


The diesel might be 35 to 45 years old. That naval bronze rudder shaft is probably pink at the stuffing box from the zinc disappearing. Old sails. Leaky hull-deck joint. Ancient rigging. Untinned wiring.



If it's a bolt-on keel, that's a whole other issue. Someone who bought an old sailboat ran aground near St. Petersburg a year or so ago -- and lost the keel entirely because the bolts were bad..


What prompted this post was an email I received from an Australian back when I was selling my Bristol 30. He wanted to buy it and sail it ... back to Australia.


It was a good boat, but it was 44 years old. The fiberglass was fine, and the diesel was only 20 years old, but everything else on the boat was older than he was.


It might have been a great adventure, but I knew the boat. And I saw the likelihood of the boat gradually falling apart as it was subjected to bouts with 40-knot winds and 20-foot seas.


I told him I wouldn't sell the boat to him at any price. And never regretted it.

[Montanan]

Originally Posted by cooper1991

Sounds good. I've got 3 months to fix up and push off. So if I sail to Texas or Carolinas I'm clear of taxes?

Geez the sales and use taxation in Floriduh is modest, less than a boat brokerage fee.

As to Texas:

A Texas resident who buys a boat or boat motor in another state and brings it into Texas owes the 6.25 percent boat and boat motor use tax. The buyer can receive credit for tax legally due and paid in another state for a boat or boat motor brought into Texas when titling and registering the boat.

Use tax is due on a taxable boat or boat motor purchased in another state and brought into Texas within 45 working days after it is delivered to the purchaser or brought into Texas for use. Boat use tax is 6.25 percent. There is no limit to the amount of use tax due on the use of a taxable boat or boat motor in this state.

As to South Carolina:

Effective July 1, 2017, South Carolina Code Section 12-36-1710 (A) imposes a 5% casual excise tax on the issuance of every certificate of title, or other proof of ownership, for every boat, boat with motor permanently attached at time of sale, or airplane, required to be registered, titled, or licensed. with a maximum fee of $500.00 on the boat.

As to North Carolina:

Boats are not subject to the local and transit rates of sales and use tax. In the instance where sales tax has not been paid on the purchase of a boat, a use tax at the 3.00% State rate with a maximum tax of $1,500 per article applies to a boat purchased or received from within or without this State for storage, use, or consumption in this State.

[John Kemp 14512]

Why not Document the boat? No sales tax, just a $300~ fee to register and $100~ annually going forward? While you SHOULD register the boat in Florida, I've been boarded a bunch of times and the USCG documentation works just fine. Yes, foreign holders can Document with the USCG. The process takes 90~ days.

[John Kemp 14512]

Reading thru these threads.... People are bat **** crazy.... A 40 foot sailboat is PERFECT for Florida, just be certain to understand the passes and such... The Keys in particular are especially tricky.... When uncertain of a passage, I typically go at a lower tide to ensure that I'll have a couple of foot more water under me in a few hours. :-) That damned pass at Fleming Key took a while to master at night with no lit Nav Aids.... :-)

[Sand crab]

John, You have to be a US citizen to document, the OP is not. On the other hand states don't care where you are from.

[Cheechako]

Originally Posted by cooper1991

So if I buy the boat and sail to say Bahamas immediately, I can avoid tax?

Yes, just move out within 90 days. You can buy a boat, move through the adjacent states, then sail the Caribe for 3 years, bring it back to FL to sell and never pay any sales tax in the US.

As mentioned above, you need to establish some sort of ownership document though. As a foreigner, not sure how you do that, but I imagine there is a way. You need this document to check in and out of various islands.
There are marine escrow and title places in FL that would know how I suppose.
I tried to register a boat in my home state but when I told them the boat was not in the state they wouldn't let me. So if you intend to do that, I wouldn't bring up where the boat is.

[John Kemp 14512]

Ok.... I assisted the purchase of a 44' Lagoon for a Canadian resident... I THOUGHT she had Documented it in the US, but it's possible she Documented in Canada.... I do know that if she ever took the boat home she would own duty.... Another thought would be to create an LLC and have the boat held there... Or.... if FLORIDA title.... Just ask the seller not to enter the dollar amount on the title.... MANY states don't even have the dollar amount on the titles.... So you just need an "ahem" bill of sale.... I am a Florida resident and their rules are pretty easy to skirt if you have a desire to do so.