What To Do?

I'm New Jersey resident, thinking of buying a boat in Michigan, cruising to Florida where I would keep it for a couple of years, using it for less than six months per year. I may want to bring it home to NJ in the future.
So here's the question: Can I title, and pay the sales tax in NJ but register it in Florida or would have to title, register and pay the sales tax in Florida and possibly pay the sales tax again once it is brought to NJ. (Remember I'm a NJ resident) (I know, don't ask me why)

Or the short version: Can a out of state boat be used and registered in Florida but be owned and titled in NJ?

How long between buying the boat and arriving in FL?

You usually get credit for any sales tax paid to a previous state when you register it in another state. So you should never have to pay sales tax twice, just the difference.

Not sure what you are trying to do, but if you keep the boat in Florida the majority of the time you will have to register it in Florida. Whether you can register while titled in another state is another question. Maybe best to federally document it then register it in whatever state you are in. Federal documentation (a kind of title) usurps all state titles and no state requires you to title it there if federally documented.

David

Yes, an out of state titled boat can be registered and taxed in Florida, in fact, it is mandatory that it be registered in Florida if it stays more than 6 months. Florida is also extremely efficient at collecting any and all taxes due on boats, thus you would have to pay Florida sales tax and then apply that amount to the NJ tax bill when you move the boat there. The only viable exception is when you buy an LLC whose sole asset is the boat: in that case the ownership of the boat does not change hands and no sales or use tax is due. There is no tax due when purchasing an LLC.

Woodland Hills said:

Yes, an out of state titled boat can be registered and taxed in Florida, in fact, it is mandatory that it be registered in Florida if it stays more than 6 months. Florida is also extremely efficient at collecting any and all taxes due on boats, thus you would have to pay Florida sales tax and then apply that amount to the NJ tax bill when you move the boat there. The only viable exception is when you buy an LLC whose sole asset is the boat: in that case the ownership of the boat does not change hands and no sales or use tax is due. There is no tax due when purchasing an LLC.

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Nope.....90 Days. Based on OP's scenario he will have to register in FL. If not paid elsewhere they will collect sales tax, even though his residence is NJ. He may also get a letter from the state of NJ looking for money as he is a resident there. PA did this to me for a boat I bought in MD, paid MD sales tax on and kept in MD. How they found out beats me. A marina contract (proving it's out of state) and evidence of sales tax paid in FL should keep NJ happy although they MAY ask for the difference at some point.... (FL=6% NJ=6.6%)

oscar said:

Nope.....90 Days. Based on OP's scenario he will have to register in FL. If not paid elsewhere they will collect sales tax, even though his residence is NJ. He may also get a letter from the state of NJ looking for money as he is a resident there. PA did this to me for a boat I bought in MD, paid MD sales tax on and kept in MD. How they found out beats me. A marina contract (proving it's out of state) and evidence of sales tax paid in FL should keep NJ happy although they MAY ask for the difference at some point.... (FL=6% NJ=6.6%)

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The current sales tax on boats in NJ is 3.3% with a maximum tax of $20,000.

I suggest you read up on this...


https://www3.flhsmv.gov/dmv/Proc/ves/vsrs/vsrs-09.pdf


Its a procedure used in Florida to take care of what I think you want to do.


It may depend on whether or not you Federally document the boat. If you do...that is your title.



The decision also is the price of the boat. I believe Florida has a cap on vessel sales tax. NJ I believe dropped sales tax on boats to 3.5% or something like that. So those numbers matter.


If the Florida numbers are less...I would just cruise to Florida...title and register there...pay the sales tax. Then when you cruise back to NJ, change the title/registration to there and pay any difference.



Be real careful even with my numbers and advice...almost ALL titling, registration advice I read on the internet is either wrong or doesn't cover all the bases.


You alost have to jot down the scenario you want then call/better yet write the appropriate DMVs and get their answers...even then you may get bad advice.


Best answer is be prepared to pay the higher of the 2 sales taxes, or do the LLC thing with really good tax attorney advice.

4fun1 said:

The current sales tax on boats in NJ is 3.3% with a maximum tax of $20,000.

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HAH. Thank you, learned something......

Warning, a bit of thread drift
Just for some perspective, here in BC, Canada, we pay 12% sales tax! However, we don't have a "use" tax or other "additional" taxes on boats.

When he moves the registration to Nj he absolutely will get credit for sales tax taxes paid to Florida. The big but is you need to prove it with the sales tax receipt. Lots of states print that on the first year registration receipt. DO NOT THROW THAT AWAY when you renew!!!
For gods sake do not let Nj keep it.

firehoser75 said:

Warning, a bit of thread drift
Just for some perspective, here in BC, Canada, we pay 12% sales tax! However, we don't have a "use" tax or other "additional" taxes on boats.

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But you get free healthcare