Non-residents who purchase a boat over 5 net tons in Florida, can purchase a 90 day tax exempt decal from their broker. This can now be extended to 180 days, if the purchaser opts for the 2nd decal before the 60th day. Tax exempt decals may only be obtained from the Selling Yacht Broker/Dealer who is licensed by the State of Florida. Sales between individuals do not qualify for the tax exemption. (Dinghies are taxable as they are under 5 net tons, unless removed within 10 days of the date of purchase).
FLORIDA – JULY 2010
An $18,000 sales/use tax cap was introduced on all vessels purchased on or after July 1, 2010.
Raised their sales/use tax rate from 5% to 6.25%
SEPTEMBER 28, 2010 - FLORIDA
FOREIGN FLAGGED BOATS OFFERED FOR SALE HERE IN THE U.S. while under a U.S. Cruising Permit.
Recently U.S. Customs “detained” several yachts in Florida which were Foreign Flagged AND offered for sale, while operating in U.S. Waters under a U.S. Cruising Permit.
The language on the Cruising Permit states that the boat cannot be offered for sale or charter, and further states that if the vessel is offered for sale or charter, the Cruising Permit becomes invalid.
On those yachts that were detained, the vessels had not made a formal entry by paying the 1.5% duty or posting bond.
At this point we are not sure what will happen to those vessels that have been detained. They are “subject to forfeiture” if the owners have indeed offered the boats for sale without the following language being added to ALL ADVERTISING:
“NOT FOR SALE TO U.S. RESIDENTS WHILE IN U.S. WATERS”
(This includes all SIGNAGE posted on the Yacht itself by the Yacht Broker.)
PLEASE CONTACT A CUSTOMS BROKER IF YOU HAVE ANY QUESTIONS … we are more than pleased to refer you to Mr. Steele Reeder at Howard S. Reeder, Inc. 305-371-8431 or you may email him at
steele@howardsreederinc.com(This includes all SIGNAGE posted on the Yacht itself by the Yacht Broker.)
IN FLORIDA, once the vessel is duty paid, the Florida Dept. of Revenue expects to receive the sales/use tax on the value of the boat, (now capped at $18,000.00). UNLESS the following occurs:
- The vessel is placed under the “Care, Custody & Control” of a Yacht Broker under a Central Listing Agreement. The owner
cannot use the vessel while it is under the Care, Custody & Control of the Broker.
OR - The owner may stay for a period of 20 days at any dock that charges tax on the dockage fee. The clock starts ticking on the first day, and the vessel must leave Florida by the 20th day.
IMPORTANT NOTE: - If the vessel is docked behind someone’s house, and tax on the dockage fee is not collected, (i.e.: not registered with the state of Florida with a sales tax number,) then TAX MAY BE DUE ON THE VALUE OF THE VESSEL TO THE STATE OF FLORIDA IMMEDIATELY.
It is not our intent to give tax advice on this site, and for questions and clarification you are advised to seek “technical assistance” from the Florida Dept. of Revenue, and/or a Maritime Attorney familiar with Florida’s tax laws.
For advice on vessels situated in other states, we recommend consultation with those tax advisors.
