Leaving boat in FL over the summer

Marlinmike said:

...has anyone heard of people getting tagged for taxes while in Florida, never seen or heard of it here in NY and some boats go back to Florida for the winter...

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We haven't heard of anyone. We arrived in FL in June and are moored in a private marina where at least 25% of the boats have out of state registrations. No one that we know of has been stopped or paid FL registration. The marina offers special rates from June 1 to the end of December for transit vessels who are looking to keep their boats there for hurricane season. Right or wrong, it's just what I have observed.

magicbus said:

Well OK, I found those two quotes, but then I found this in the myflorida.com link:

Use tax and surtax are not due on boats brought to Florida if you meet all of the following conditions:

• You own the boat 6 months or longer, and
• You have shown no intent to use the boat in Florida at or before the time of purchase, and
• The boat has been in use 6 months or longer within the taxing jurisdiction of another state, U.S.
territory, or the District of Columbia. Time spent in foreign waters does not count as part of the
6-month period.

I have also heard of the 180 cruising permit so I will research that when I get time and see what that's all about.

Interestingly enough, my insurance agent now says that if I haul out for hurricane season north of Cumberland Island, GA I will save a bundle on premiums. I know even less about GA!

Dave

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Please check the difference between SALES tax and USE tax. If I'm not mistaken, your above quotes are related to the SALES tax - not the USE tax.

Thanks Larry, it seems like something difficult to police unless Marina's are required by law (and stiff penalty) to disclose those vessels there longer then 90 days. I pay every tax imaginable, just not a fan of getting double dipped.

theran5317 said:

Please check the difference between SALES tax and USE tax. If I'm not mistaken, your above quotes are related to the SALES tax - not the USE tax.

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In the state that I have dealt with there is virtually no difference between sales and use taxes. Sales tax is paid at the time of purchase. A use tax is paid if you register later, and have not paid the required sales tax.

Where I am confused here is the difference between a Florida resident bringing a boat in, and a resident of another state bringing a boat in. Does the 6 months rule no longer apply to none residents?

First I want to mention a storage place that is part of the same company that Fred mentioned, River Forest Marina in Stuart so that is east coast. They promote themselves as having a hurricane resistant building and it is air conditioned so that you do not have mold and humidity problems.
It is considered a harbor of refuge to most insurance carriers for discounted rates.

Here is the tax info copied directly from the link posted earlier. They key item is that you owned the boat for more than six months. If you kept the boat in Rhode Island where there is no sales tax for a year of more than there is still no tax due in Florida. After 90 days you are required to get a decal showing the state registration fee is paid even if the boat is documented, but it is not normally enforced unless you get in trouble for something else like speeding or a large wake etc.

Use tax and surtax are not due on boats brought to Florida if you meet​

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yachtbrokerguy said:

First I want to mention a storage place that is part of the same company that Fred mentioned, River Forest Marina in Stuart so that is east coast. They promote themselves as having a hurricane resistant building and it is air conditioned so that you do not have mold and humidity problems.
It is considered a harbor of refuge to most insurance carriers for discounted rates.

Here is the tax info copied directly from the link posted earlier. They key item is that you owned the boat for more than six months. If you kept the boat in Rhode Island where there is no sales tax for a year of more than there is still no tax due in Florida. After 90 days you are required to get a decal showing the state registration fee is paid even if the boat is documented, but it is not normally enforced unless you get in trouble for something else like speeding or a large wake etc.

Use tax and surtax are not due on boats brought to Florida if you meet​

[FONT=Arial,Arial][FONT=Arial,Arial]all [/FONT][/FONT]of the following conditions: ​

•​

You own the boat 6 months or longer, and ​

•​

You have shown no intent to use the boat in Florida at or before the time of purchase, and ​

•​

The boat has been in use 6 months or longer within the taxing jurisdiction of another state, U.S. territory, or the District of Columbia. Time spent in foreign waters does not count as part of the 6-month period.

​

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Thanks Tucker. That was my understanding.

yachtbrokerguy said:

First I want to mention a storage place that is part of the same company that Fred mentioned, River Forest Marina in Stuart so that is east coast. They promote themselves as having a hurricane resistant building and it is air conditioned so that you do not have mold and humidity problems.
It is considered a harbor of refuge to most insurance carriers for discounted rates.

Here is the tax info copied directly from the link posted earlier. They key item is that you owned the boat for more than six months. If you kept the boat in Rhode Island where there is no sales tax for a year of more than there is still no tax due in Florida. After 90 days you are required to get a decal showing the state registration fee is paid even if the boat is documented, but it is not normally enforced unless you get in trouble for something else like speeding or a large wake etc.

Use tax and surtax are not due on boats brought to Florida if you meet​

[FONT=Arial,Arial][FONT=Arial,Arial]all [/FONT][/FONT]of the following conditions: ​

•​

You own the boat 6 months or longer, and ​

•​

You have shown no intent to use the boat in Florida at or before the time of purchase, and ​

•​

The boat has been in use 6 months or longer within the taxing jurisdiction of another state, U.S. territory, or the District of Columbia. Time spent in foreign waters does not count as part of the 6-month period.

​

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Go back to post 15 of this thread, also copied directly from the very same link that you just posted. Clear as mud.

When I was looking into cruising Florida last year I found this. It looks like it takes care of the tax and length of stay issue. Do not know if it is still in effect, but worth looking at.
Florida Sojourner Registration

Rickized said:

When I was looking into cruising Florida last year I found this. It looks like it takes care of the tax and length of stay issue. Do not know if it is still in effect, but worth looking at.
Florida Sojourner Registration

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Nice little tidbit, Rickized. Thanks.

A couple of things. 1. I don't know of someone "caught" in FL having not paid some tax or other, but I do know of plenty of boats taken out of FL, camped out in GA for 15 days, then returned to FL to avoid the tax and/or registration requirements. He would not give them the information in writing or call West Palm Beach to inform the workers there of the correct rule application.

2. Getting information from local tax/registration offices really differs. In one case, some Canadian friends bought a boat in FL in the West Palm Beach jurisdiction and were not able to get a cruising permit there for a plethora of reasons. They called Miami and spoke to a very knowledgeable guy who said it would be no problem to do it there IF they relocated to his jurisdiction. To avoid the tax-registration issues, they took the boat to GA for 15 days, then brought it back and went to the same guy that turned them down at West Palm Beach who didn't remember them, and immediately were given a cruising permit. They said nothing.

3. I have my boat on the Okeechobee Waterway in Stuart in a protected marina on the St. Lucie River, about 50 minutes from the ICW at 7 knots. Quiet, gated, small, a couple of live-aboards to keep a look-out. For 36 ft. it's under 500 per month including water and 30 amp. It's a side tie, and some shallow areas. For storms, the boats can be tied bow and stern between concrete piers. Tides are usually less than 2 ft., although they are really dumping out of Lake Okeechobee right now, and will probably continue for a while, so tides are staying higher than usual and the river is moving 3+ knots.

4. My insurance is with Atlass here in FL, and covers named storms (albeit with a considerable deductible). About 2800 per yr. was half of what Boat US quoted.

I think that covers the other stuff you asked about.

SCOTTEDAVIS said:

Yep I know, but most states all do it, as I noted above CT only allows 60 days.

Think of it like buying a $200k Fl. condo, you would pay yearly property tax's PLUS a real estate sales tax at time of purchase. Now if you buy a $200k boat in Delaware (no tax) and brought it to Fl. and parked it at your brother in-laws house to live in for 6 months out of the year, what tax does the state get? The boat is a one time shot so in the long run the boat is a better (tax) deal.

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Delaware had a 2.75% doc fee when I lived there.

Harbortown Marina in Merritt Island is a great spot for Hurricane storage. They are on the West side of the Canaveral Locks, located off the Barge Canal. The Canal joins the Banana River and the Indian River(ICW). No current or tide. Fixed docks well protected. Full service facility including a pool and a restaurant. Short easy run to access the ICW or the Atlantic.

John

Still for sale?

I've seen MB listed for sale on YW and was hoping to get to see it soon, is it still for sale?
I'm in FL now but bouncing from one relatives house to another (family visit time) but did manage to look at a couple of marinas (Titusville & St Pete) while I've been down here.

Good luck on your winter plans.

Bottom line if you have already paid at least 6% sale or use tax in another state you won't pay it twice.

FL recognizes all other states payments but if you were in AL where sales tax is 4% and you visit FL for 91 or more consecutive days you are then considered a resident and subject to FL sales and use tax rules. AL 4% sales tax paid FL will charge 2% use tax up to their cap.

Thats why most cruisers from low tax or non tax states will go out of FL state waters for a minimum of 24 hours before the 90th consecutive day and that breaks the timeline. Make sure you can prove you were outside the states waters by retaining fuel receipt, marina receipt, etc.

I have also heard that a photo of the days paper to show date along with your chartplotter showing your GPS co-ordinates has also been accepted.

This is not official advice so check with your CPA or marine attorney, if unsure you can also call the FL dept revenue boat enforcement unit.

Do not ignore the law. At one time Florida had photographers on the bridges taking pictures of out of state boats, and other employees checking the marinas. These are large dollars and you don't want to get caught.

Marty

gwkiwi said:

Bottom line if you have already paid at least 6% sale or use tax in another state you won't pay it twice.

FL recognizes all other states payments but if you were in AL where sales tax is 4% and you visit FL for 91 or more consecutive days you are then considered a resident and subject to FL sales and use tax rules. AL 4% sales tax paid FL will charge 2% use tax up to their cap.

Thats why most cruisers from low tax or non tax states will go out of FL state waters for a minimum of 24 hours before the 90th consecutive day and that breaks the timeline. Make sure you can prove you were outside the states waters by retaining fuel receipt, marina receipt, etc.

I have also heard that a photo of the days paper to show date along with your chartplotter showing your GPS co-ordinates has also been accepted.

This is not official advice so check with your CPA or marine attorney, if unsure you can also call the FL dept revenue boat enforcement unit.

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I believe sir that you are correct, however I am not in a position to offer financial or legal advise and would hope that someone would avail themselves to professional services in these matters.

A forum on the internet is not the best place for this type of advice, however it is worth the price paid.

Opinions, it is said are like anal sphincters, we all have them and most of the time they stink.

The way I read it if you are not a Florida resident, and have owned the boat six months or more before bringing into Florida, there would be no use tax due. Before the ninety days are up it should be registered with the county tax collector, and a registration fee of a couple of hundred bucks or so paid. Here is a link to the state site.

http://dor.myflorida.com/dor/forms/2011/gt800005.pdf

I am not a lawyer, and not giving tax advice. Just the way I read it.

Can't say I've ever heard anyone talk about this before.

beachbum29 said:

Can't say I've ever heard anyone talk about this before.

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Brokers almost never do, they don't want to screw up a deal.

Good ones do, but caveat em-tour.

Boats bought in Fl. by Fl. residents must pay state sales tax if not paid by the dealer, period. You will get caught if you don't and the repercussions are stiff and can include loss of your freedom.

Boats brought into Fl. that stay over 90 days may also owe tax's.

magicbus said:

Well OK, I found those two quotes, but then I found this in the myflorida.com link:


Interestingly enough, my insurance agent now says that if I haul out for hurricane season north of Cumberland Island, GA I will save a bundle on premiums. I know even less about GA!

Dave

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Something to think about with Georgia: Southern Georgia has two large storage areas, Brunswick and Savannah. The large yard in Brunswick will not let you work on your boat on the hard. If this is your plan then consider one of the yards in the Savannah area.

Marty

There is a difference between SALES tax and USE tax.

Florida and most states freeze the 90 period if the boat is in storage such as hauled out or under repair.

Bay Pelican said:

Florida and most states freeze the 90 period if the boat is in storage such as hauled out or under repair.

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I was thinking the same but EVERY reference in Florida stautes says IN FLORIDA...not IN USE in Florida.

Under the sales tax provision they exempt boats leaving the state if they are 5 net tons or less...over 5 ton still have to register... so I wonder if they somehow include the 5 net ton rule to stored and/or being repaired?????

NO they don't freeze it for 90 days while in storage!

Google Fl. boat sales tax safe harbor provision.


Florida’s Safe Harbor Act
If sales or use tax has not been paid on a boat, the boat is exempt from tax if it remains in this state for a
maximum of 20 days in any calendar year. The 20-day per
iod is calculated from the date of first dockage or
slippage at a registered facility that rents dockage or slippage space in this state.
If a boat enters Florida for repairs or modifications and is placed in a registered repair facility, it may stay
without taxation until the repairs are completed. The 20-day period stops while the vessel is undergoing
repair. Once the repairs are complete, the owner has the balance of the 20 days to remove the boat from
Florida.
These repairs, additions, alterations, refitting, or modifications may be subject to sales tax and the
applicable discretionary sales surtax.
Storage of a boat in Florida will not qualify for the “safe harbor” exemption. A boat listed for sale, contracted
for sale, or sold using a registered boat dealer or yacht broker will qualify for the exemption if sold while in
Florida under the safe harbor provisions


http://dor.myflorida.com/dor/forms/2011/gt800005.pdf


Why the insistence on guessing and speculation in this day of instant access to information??

If you don't know something either look it up or state that you are guessing don't state something as a fact that you really know nothing about.

FF said:

There is a difference between SALES tax and USE tax.

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In Florida other than being collected at different times, what is the difference?

Moonstruck said:

In Florida other than being collected at different times, what is the difference?

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Sales versus use tax.

It is easier to explain if we use the correct term. What we call a "sales tax" is actually a retail occupation tax on the retailer collected by adding the tax to the sales price. Basically the state is taxing someone or something for being in the retail business. Thus Florida cannot tax a retailer in Georgia for selling you a boat.

What many states do is access a "use tax" on anything bought out of state and brought into the state and used in the state. The amount of the tax may be different because many states have local retail occupation taxes which add to the state retail occupation tax, whereas the use tax is just the state tax.

States have agreed to treat titled items, boats cars etc as purchased in the state where it is to be titled/registered. Thus if my wife, an Indiana resident buys a car in Illinois, there is no Illinois tax paid even if the car is picked up in Illinois. She pays the Indiana tax when she registers the car. Same with boats.

What is unusual for boats is that the states will apply the use tax to a boat brought into the state years later. Thus if Bay Pelican is moved to Maryland Maryland can assess a tax on Bay Pelican based on the current value of Bay Pelican. Maryland would give credit for any tax paid to Illinois, where Bay Pelican is currently documented.

Marty

State sale and use taxes are charged at the same rate in Florida. The local option tax is capped at $50.00 on a boat transaction. The effect to me doesn't seem very different.

Could someone please clarify this that was clipped from the State of Florida sales and use tax info.,?


Use tax and surtax are not due on boats brought to Florida if you meet all of the following conditions:
• You own the boat 6 months or longer, and
• You have shown no intent to use the boat in Florida at or before the time of purchase, and
• The boat has been in use 6 months or longer within the taxing jurisdiction of another state, U.S.
territory, or the District of Columbia. Time spent in foreign waters does not count as part of the
6-month period.

The intent seems pretty clear to me. How am I confuse here?

Moonstruck said:

Could someone please clarify this that was clipped from the State of Florida sales and use tax info.,?


Use tax and surtax are not due on boats brought to Florida if you meet all of the following conditions:
• You own the boat 6 months or longer, and
• You have shown no intent to use the boat in Florida at or before the time of purchase, and
• The boat has been in use 6 months or longer within the taxing jurisdiction of another state, U.S.
territory, or the District of Columbia. Time spent in foreign waters does not count as part of the
6-month period.

The intent seems pretty clear to me. How am I confuse here?

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There's more to that...go back to page one post's 8 & 13...the links take you there and discuss the 90 days. The issue you just posted is for sales tax...OK your are exempt from that but you will still have to register after 90 days. When you register they will whack you for taxes less than 6%.

Here's a link that was in post #8 and look at the first section..last sentences.

Florida Boat Tax – Major July 1, 2010 Change

psneeld said:

There's more to that...go back to page one post's 8 & 13...the links take you there and discuss the 90 days. The issue you just posted is for sales tax...OK your are exempt from that but you will still have to register after 90 days. When you register they will whack you for taxes less than 6%.

Here's a link that was in post #8 and look at the first section..last sentences.

Florida Boat Tax – Major July 1, 2010 Change

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You are correct, sir.

In post #15 I directly coped and pasted and made red the relevant points and cited the reference from where they came.

You also pay yearly for the registration based on the size of the boat, I pay <300 dollars.

I have already asked, spent the $$ with the attorney, talked to the state and the accountant, been there and have the T-shirt.

There is a very short safe harbor provision (20 days for documented repairs, but not for haul out or winter storage.

If the boat remains in FL. for 91 days or 185 total in one year. it must have a state reg. sticker and pay the tax owed on the value of the boat. I asked how that was determined and I was told by a licensed appraiser paid for by the owner.

Don, do you have a Fl. registration sticker on the port side of your boat?

If you leave the state every 90 days and have proof (run to Bimini) that you did you are in the clear if not then you need to reg. your boat and pay any balance owed at that time to be legal.

SCOTTEDAVIS said:

Brokers almost never do, they don't want to screw up a deal.

Good ones do, but caveat em-tour.

Boats bought in Fl. by Fl. residents must pay state sales tax if not paid by the dealer, period. You will get caught if you don't and the repercussions are stiff and can include loss of your freedom.

Boats brought into Fl. that stay over 90 days may also owe tax's.

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I paid sales tax.