View Single Post
Old 10-18-2011, 11:20 AM   #10
Woodsong
Guru
 
Woodsong's Avatar
 
City: Atlanta
Vessel Model: Bayliner 4550 Pilothouse
Join Date: Oct 2007
Posts: 1,630
RE: Sales Tax Boat Purchase

Quote:
yachtbrokerguy wrote:
Where you keep the boat and for how long will be important to your tax situation. Florida has some good programs to assist the marine industry in selling boats located here and for new owners to keep them in Florida and spend money here after the sale. As a non- resident you can keep the boat in Florida for up to 6 months with no tax due, you must sign an affidavit stating that you do not intend to keep the boat in Florida and show that it is documented or registered in some other state. If later you decide*to bring the boat here you can after a time limit.*

If you want to keep the boat in Florida the maximum tax is $18,000 which is similar to the cost of registering it in a foreign country, but without the requirement to leave the US once a year and without yearly renewal costs.*If you register in another country you can cruise with a US customs cruising permit, but have to leave yearly if the boat was not built in the US. *Florida has increased tax revenues on sales of boats over $300,000 by 300% with the new tax cap.

Many states are looking for revenue and actively searching for boats to charge a tax to. In some states marinas are required to submit lists of boats kept there, other states have agents walking the docks to search for boats to send a tax bill to the owner. The key is how long the boat is in that state, rather than passing through.

This is a very complicated subject and the cost of a maritime attorney might be worthwhile depending on your situation.

*
*

What Tucker said! *Very well stated and accurate. *Typically your taxation will be a function party of where you buy but mostly due to where you physically keep the boat. *It is extremely important to understand the tax structure of sales or ad velorum tax wherever you contemplate cruising or keeping the boat. *It gets very complicated. *if you are in fact in GA you will not pay any sales tax IF it is bought private party to private party (can still be a brokerage boat- just have to have bill of sale from seller to you directly without routing it through brokerage firm). *However, you will get hit with the annual ad velorum tax. *My previous boat was valued right at $250k and that equated to about a $2,500 annual tax bill for that boat. *Most, but not all, states will also honor sales tax paid in other states but not ad velorum taxes paid. *It is important to understand all tax ramifications for any move or purchase made so that you are not surprised by the tax man. *In Ga if you don't pay they will chain you to the docks and they can order the funds be removed directly from your bank account without your consent- they don't mess around.
Woodsong is offline   Reply With Quote