What is Taxable?
-Sales Tax
A 6% sales tax must be paid on all boats sold or delivered in Florida, unless a specific exemption applies. Many counties also impose a local discretionary sales surtax on the first $5,000 of the sales price. Taxes are due at the time of sale and are collected by the boat dealer or yacht broker, who pays them to the Department of Revenue.
All sales of boats between individuals and fully taxable to the purchaser, if the sale or delivery occurs in Florida.
-Use Tax
Use tax is a component of Florida sales and use tax. It is due on purchases made out of state and brought into Florida within 6 months of the purchase date. Local discretionary sales taxes on the first $5,000 also apply to these purchases. The use component of the sales and the use tax provides uniform taxation on items such as boats, if the boat is purchased outside Florida but is used or stored in the state.
If a boat brought into Florida is subject to use tax, a credit for taxes paid to another state, a US territory, or the District of Columbia will be allowed. A credit is not allowed for taxes paid to another country.
When Use Tax is Due
Under most conditions, boats brought into Florida within 6 months from the date of purchase are considered to be for use in Florida and are presumed taxable. However, use tax may be due immediately upon importation into Florida, if either the following conditions are met:
– the boat is owned by a Florida resident; or
-the boat is owned by a corporation and used by corporate office or director who is a Florida resident or who owns, controls, or manages a dwelling in Florida.
Use tax may become do when a boat is required to be titled and/or registered in Florida. Florida registration and/or titling is required:
– within 30 days after purchase; or
– 90 days after the boat enters Florida, if it is currently titled and/or registered in another state.
A boat that remains in Florida for more than 90 consecutive days or more than 183 days in a one year period is presumed taxable, unless it qualifies for another exemption.