Boat tax info?

[BandB]

Quote:
Originally Posted by Hamrow View Post
Thanks brokerguy and can i follow up on this line of thought?: if the boat is bought and registered in RI where they have no sales tax, then i move it down to Florida and decide to stay there forever, would there be no sales tax? in this case, i would then only have to pay the $250 to get it registered in FLA?



Wifey B,
That one I'd check. Florida does require a sales tax on boats purchase by a FL resident for use in FL, and for an out of state resident if used in FL over 180 days (may have changed to 90 days), or someone moving to FL with their boat if purchased else where and they paid tax less than 6% (more in some counties), but will get a credit for what they actually paid.

There's a lot more laws in FL.... depending, with brokers, having maintenance done, if purchase in FL by a non resident and moved out of state, etc., etc.

It's a though to read the laws very carefully. And the tax man is very aggressive in FL.

Wifey B: You're correct. What I said only applies to a few, non-resident, bring boat to FL types. Even if you're not required to pay when you bring it, you may be later if you keep it in FL. As you say a lot of complexities and dealing in generalities is dangerous and leads to nice, innocent girls like me misleading people.

 

[David Hughes]

I've never quite figured out the huge advantage of paying less insurance, theoretically, to avoid the most popular cruising areas for half the year. I can pay less for my auto insurance too if I agree to garage it 6 months of the year.



Fine as long as the rumors persist on the difficulty insuring in Florida. I would just say if one is considering locations, perhaps wise to actually get quotes from brokers located in those areas, not those located elsewhere or placing with carriers not doing large business in those areas.



I live in south FL and don't know at all about this so called higher "hurricane" insurance, but then I've not gotten quotes elsewhere because I choose to live here.

I totally agree with this comment. I have read in so many books and posts and articles where people run their boat 500-1000 miles or even more to get out of the hurricane zone because of their "insurance". That's total bullshit. My boat and about 10,000 others are in Florida year-round. My insurance for a $250,000 boat with 1% deductible and $1M liability is $6800 IN CHARTER. It was under $4000 before I put it in charter. And my only prior experience is with a 25' Cobalt we have at our lake house.

I can't believe that even if the cost were half that, or $2000 per year, that I would change my entire lifestyle just to get cheaper insurance. Surely the fuel or wear and tear is not worth such a change to save a few bucks.

Indeed, I think BandB is onto something about people getting quotes in areas that just don't "get it".

And worrying about a hurricane and your boat also seems pretty futile to me. No hurricane ever snuck up on anyone in the last 40 years. These days we have many days warning to either move the boat or secure it properly. And if you do get a direct hit and it's wrecked that's why you have insurance in the first place.

Pick where you want to be and insure accordingly, not the other way around.

 

[twistedtree]

I think it just comes down to the rates you pay. It costs less if you agree to keep your boat north of some location during hurricane season, or outside of the areas perceived to be higher risk.

To give some perspective, your insurance in the hurricane zone, prior to charter, was $16 per thousand of hull value. I'm paying $4 per thousand, and that actually includes the west coast's so-called hurricane zone down in Mexico, but obviously it's considered lower risk than Florida.

 

[David Hughes]

I think it just comes down to the rates you pay. It costs less if you agree to keep your boat north of some location during hurricane season, or outside of the areas perceived to be higher risk.

To give some perspective, your insurance in the hurricane zone, prior to charter, was $16 per thousand of hull value. I'm paying $4 per thousand, and that actually includes the west coast's so-called hurricane zone down in Mexico, but obviously it's considered lower risk than Florida.

Fair enough, and good point. Yet at $250,000 hull value, the difference is $3000 a year. In a $1M boat, it would be $12,000 a year. At $100,000, the difference might be something over $100/month. I still believe at the $1M level, the $250k level, or the $100K level, it's affordable in terms of other boat expense, and not worth changing where you like to spend time.

 

[BandB]

I think it just comes down to the rates you pay. It costs less if you agree to keep your boat north of some location during hurricane season, or outside of the areas perceived to be higher risk.

To give some perspective, your insurance in the hurricane zone, prior to charter, was $16 per thousand of hull value. I'm paying $4 per thousand, and that actually includes the west coast's so-called hurricane zone down in Mexico, but obviously it's considered lower risk than Florida.

Not necessarily so obvious. Likely the case but price per thousand isn't consistent at all through different prices and sizes of boats. On a $250k boat you will pay considerably more per foot than on a $2 million boat. We're paying as low as $3.43 per thousand, in South Florida.

Only way to be sure is to shop and price.

 

[Heron]

Back to taxes...it took a year and a half for the county taxing jurisdiction to figure out my boat was berthed in their county. I explained that I was paying personal property taxes in another county (my registered address) and never heard another word. My county of residence finally sent me a personal property tax bill at about that same time...They must have looked in their book, seen "Cape Dory 28" and sent me the bill for ( I assume) a sailboat of the same vintage. Chances are the Trawlers never made the book as there were so few of them.. As the Sailboat is worth about 20% of the trawler version I chose not to "rock the boat" on this one...
$100/yr seems fair....

 

[Bay Pelican]

Hurricane insurance costs, 42 ft Kadey Krogen, $250,000 hull value. Trinidad below hurricane zone, $2,000. Georgia, above hurricane zone, $2,000. St. Lucia through Puerto Rico, $4,600.

Yep it is expensive to be in the hurricane zone.

 

[Seevee]

Insurance is just a risk/benefit decision. One just has to decide what coverage is appropriate for their boating.

At some point, insurance makes no sense. Obviously, if insurance were 50% of the hull value per year, no one would insure. Some of the above figures hit close to 2 to 3 percent of hull value, which I find is brutally high. And the premium should be based on value, not length.

It's hard for an insurance company to properly value risk, so they may a lot of assumptions and put a lot of folks in the same "risk" bucket, regardless of their real exposure.

I could see where insurance would be higher for one that just uses the boat more, like a charter situation. But in charter you have a professional crew, so the rate should be lower... it isn't, unless theres a bunch of premium for potential liability issues with the passengers.

Would be nice if the insurance company could do a better job of risk.

 

[David Hughes]

Insurance is just a risk/benefit decision. One just has to decide what coverage is appropriate for their boating.

At some point, insurance makes no sense. Obviously, if insurance were 50% of the hull value per year, no one would insure. Some of the above figures hit close to 2 to 3 percent of hull value, which I find is brutally high. And the premium should be based on value, not length.

It's hard for an insurance company to properly value risk, so they may a lot of assumptions and put a lot of folks in the same "risk" bucket, regardless of their real exposure.

I could see where insurance would be higher for one that just uses the boat more, like a charter situation. But in charter you have a professional crew, so the rate should be lower... it isn't, unless theres a bunch of premium for potential liability issues with the passengers.

Would be nice if the insurance company could do a better job of risk.

In the case of my boat, Charter means bareboat so I believe there is higher risk.

 

[Seevee]

In the case of my boat, Charter means bareboat so I believe there is higher risk.

David,

Yes, bareboat is a much higher risk, and can see why premiums are so high.

 

[FF]

"Yep it is expensive to be in the hurricane zone."

However if you do not wish to BE aboard in the hurricane area there are a number of folks that will stick your boat in a hurricane "proof" garage.

Not cheap, but better than running hundreds of miles to save bucks.

Here is our next door neighbor,

1. LaBelle, Florida - River Forest Yachting Centers
   
   www.riverforestyc.com/index.php/locations/labelle-florida
   
   River Forest Yachting Center - LaBelle offers Gulf Coast boaters convenient storage ... and is located on the Caloosahatchee River just east of the Ortona Lock.
   
   

 

[Bay Pelican]

Going uninsured. Two situations of which I am aware point out one of the problems of going uninsured. The first the owner hired a local to clean the boat. When the owner was not there the local turned on shore power to charge his telephone. Unfortunately did not turn off the shore power. Charger overheated causing severe damage overnight when the owner was in a hotel. Local was judgement proof. No recovery, no insurance.

Chartered boat ramed boat, major loss. Charter company has no responsibility for negligence of it clients (not in US). Charterers returned to home country where it is difficult to pursue. Owner told by attorney he is out of luck. No insurance.

In neither case was the uninsured owner at fault. In both cases suffered major loss.