florida sales tax yacht

View Cart Checkout

• No products in the cart.

Subtotal: $ 0.00

• All Current Listings
• Why Choose Macgregor
• Testimonials
• Leave a Review
• News & Events

What Boat Buyers Should Know About Florida Sales Tax Law

• What Boat Buyers Should Know…

Are you familiar with Florida’s sales tax law? If you’re a boater, you’d probably rather be out cruising on the crystal-blue Florida waters than thinking about taxes. That said, it’s great to be a boat buyer in Florida. Nine years ago, Florida implemented a tax cap on boat purchases that is still in effect today. That’s good news if you’re in the market for a vessel! Below, we’ll go into more detail about how you can benefit from the current regulation.

Current Tax Law & How You Can Benefit

Currently, Florida has a sales and use tax for boats which is set at 6% of the purchase price. However, Florida caps the total tax amount due on a vessel at $18,000. This tax cap law went into effect July 1, 2010, and is still in effect today. If you’re in the market for a boat valued at $300,000 or more, you can reap serious tax savings on your next purchase.

Prior to this law, buyers of boats priced above $300,000 began to take their business to other states and countries with lower taxes. After years of extensive lobbying in Florida, the $18K tax cap law finally passed. Today, this law has generated significant tax revenue for the State of Florida. Experts suggest it has even helped create and protect jobs in the Florida marine industry.

Dodging Tax Laws with Offshore Registration

Before this law was passed, boat owners who wanted to enjoy Florida waters but avoid Florida’s taxes had several legal ways to do so. First, if they were non-Florida residents, they could bring the boat to another state for part of the year, then bring it back to Florida during the colder months. This worked great for sportfishers, snowbirds, and other folks who tend to migrate with seasons anyway.

Another common scenario for larger boats was registering offshore, which can be costly. In this instance, the boat owner would bring the boat back to Florida under an annual cruising permit from the U.S. Coast Guard. Under this permit, the boat could stay in Florida (or anywhere in the U.S.) for up to one year. The boat was then required to leave U.S. waters and enter a foreign port, at which point they could turn around and apply for a new cruising permit.

Who Is Benefitting from the Changes

So far the $18K tax cap has been a positive change for the State of Florida. There have been a range of benefits for the state of Florida, Florida residents and the marine industry. For one, the State of Florida has seen an increase in tax revenue since the law has passed. This includes tax revenue on boat purchases, but also on boat products, services and even the tourism industry.

Boat brokers have seen a major jump in boat sales since the law’s passing. Marinas and marine workers have also benefited, as there has been an increase in boats coming and staying in Florida that would not otherwise do so. The law has also encouraged boat owners to operate and keep their boats in Florida for longer periods of time. With more boaters spending time in the area, there has been an increase in marine products and services.

Additionally, the tourism industry in Florida has seen the benefits as tourist dollars have increased since the law’s passing. Boat owners spending time in Florida tend to enjoy local restaurants, breweries, hotels and transportation services.

All in all, the $18K tax cap has been a benefit to boat buyers and boat sellers alike. If you plan on making a boat purchase at or above $300,000, Florida is a great place to do so with this generous tax law in place.

MacGregor Yachts – We’ll Help You Navigate the Tax Law

Ready to take advantage of this sales tax law to save on your next boat purchase? Let us be your guide. Give us a call today at (561) 799-6511 or contact us on our website!

Ready to take advantage of the Florida sales tax law for boat buyers? Contact MacGregor Yachts today. We’ll help you navigate the law and find the right vessel for you!

Author:  MacGregor Yachts Team

Related posts.

Howard S Reeder Inc

(305) 371-8431

• Domestic Documentation
• Foreign Documentation
• Yacht Documentation
• Testimonials

Understanding the Sales and Use Tax on Marine Vessels

The sales and use taxes on marine vessels is sometimes confused with duty and importation tax, but it is not the same system. Unlike duty, which is imposed by the federal government at the boat’s port of entry, the sales and use taxation is assessed at the state and local level and applied at the time the boat is purchased.

State sales tax is typically collected at the time of purchase if the vessel was acquired through a dealer or broker. If not paid at this time, it is remitted at the time of registration as a use tax. Although this process sounds straightforward, there are complicated issues surrounding ownership and use of boats that have been manufactured outside the U.S. and/or are foreign-flagged.

People generally opt to flag or register their boats offshore for one of the following reasons:

• To avoid paying the state sales and use tax
• The owner is not a U.S. citizen (only Americans may document their vessel with the Coast Guard)
• The boat is over 300 gross tons, making it subject to difficult and impractical local regulations

Foreign-flagged boats normally receive a cruising license from U.S. Customs and Border Protection, which prevents most states from trying to collect use tax when the vessel is in state waters. This step also exempts the boat from formal clearance and entry procedures.

Yacht owners are therefore exempt from use tax by registering their boats offshore and bringing it to Florida under a cruising license,  but if they decide to sell, Florida state law does not allow vessels under a cruising license to be put on the market unless the relevant use tax is paid or a registered brokerage assumes care and control of the boat. This is a complication that many boat owners are unaware of until they attempt to sell.

Sales and use tax can pose challenges for owners of foreign-flagged vessels. If you find yourself in a challenging situation or require assistance with the importation of a boat manufactured overseas, contact Howard S. Reeder today. We have a Customs Brokerage and Marine Documentation Division that can answer your questions about applicable taxes, address your concerns, and help you with any issues that do arise regarding your boat.

Recent Posts

• Understanding the Cruising License Renewal Process - May 20, 2020
• What You Need in Order to File Entry on a Vessel - December 20, 2019
• 3 Steps to Document Your Vessel with the Coast Guard - October 20, 2019

Contact Information

Social media.

• Free Resource

"Tips for Foreign Flagged Vessels to legally operate in US Waters"

• Enter your email address *
• Email This field is for validation purposes and should be left unchanged.
• Uncategorized
• Understanding the Cruising License Renewal Process
• What You Need in Order to File Entry on a Vessel
• 3 Steps to Document Your Vessel with the Coast Guard

Quick Links

• Customs Brokerage
• ASAP Marine Documentation

Other Links

• Privacy Policy

Get in Touch

(305) 381-6795.

Rules of the Road: A review of taxes that apply to Florida boat sales

Rules of the Road: by Capt. Jake Desvergers

It’s that time of year again: boat show season. Events at Cannes, Genoa and Monaco previewed the strong sentiment that is expected at Fort Lauderdale, Antigua, and Miami.

With the recent proliferation of trade tariffs between the United States and the European Union, many colleagues and clients have inquired as to their effect on taxes. This is a very complicated issue and must always be discussed with one’s own attorney and accountant. Every situation and yacht are different.

However, with the Fort Lauderdale International Boat Show in full swing at the publishing of this column, a summarized refresher of taxes affecting boat sales in Florida is timely.

Sales and use tax

Under Florida law, all boats sold, delivered, used or stored in the state are subject to sales and use tax. Dealers and brokers are required to collect tax from the buyer at the time of sale or delivery.

Maximum tax

Thanks to the efforts of the Interna­tional Yacht Broker’s Association (formerly FYBA), the maximum tax on the sale of a vessel is $18,000. This limit was set back in 2010 and has proved to be very advantageous for both the state and yacht owners.

The maximum tax on the repair of a boat or vessel is $60,000. This cap is to be applied to each boat repair occurring in Florida. Subsequent and separate repairs are each subject to a $60,000 cap.

When is tax due?

Unless a yacht is exempt, it must be titled or registered with taxes paid within 30 days of the purchase date or the date the boat entered Florida; and within 90 days after the boat enters Florida when it is documented, licensed, titled, or registered in another state.

Specific exemptions

• Boats sold to nonresidents :  A boat sold by or through a registered dealer or broker to a purchaser who is a nonresident of Florida at the time of taking delivery of the boat in Florida is exempt. This exemption applies to the sale of a boat, including any accessories, but does not apply to the sale of a boat trailer. There are certain time deadlines wherein the boat must leave Florida waters. These limits range from 10 to 180 days. Important to note is that this exemption does not apply to a Florida resident, an entity where the controlling person is a Florida resident, or a corporation in which any officers or directors are Florida residents.
• Foreign-flagged vessels: Foreign-flagged vessels holding a valid “License to Cruise in the Waters of the United States,” issued by U.S. Customs pursuant to 19 Code of Federal Regulations 4.94, are not subject to Florida use tax.
• Boats imported for sale:  A boat that is brought into Florida for the sole purpose of sale at retail by a registered boat dealer or broker is exempt from Florida use tax. The boat must be under the care, custody and control of the dealer or broker, and personal use of the boat is not permitted.
• Boats temporarily docked in Florida:  When Florida sales or use tax has not been paid on a boat brought into Florida, the boat is not subject to use tax when the boat remains in a registered facility that rents dockage or slippage.   That period of time cannot exceed a total of 20 days in any calendar year. The 20-day period begins on the day the boat is docked at the facility. If the boat enters Florida for repairs or modifications at a registered repair facility, it may remain in Florida tax-exempt until the repairs or modifications are completed. The 20-day period is not in effect while the boat is being repaired or modified. Once the repairs are complete, the owner has the balance of the 20-day period to remove the boat from Florida. Storage of a boat at a registered repair facility does not qualify for tolling of the 20-day time period.

Penalty and interest

For those who feel they can avoid or circumvent these rules, be aware that the monetary penalties are severe. A buyer who attempts to evade tax by submitting a fraudulent affidavit is subject to the tax due, interest and a mandatory 200 percent penalty. The buyer is also subject to a fine of $5,000 and 5 years in prison.

Capt. Jake DesVergers is chief surveyor for International Yacht Bureau ( yachtbureau.org ). Comments are welcome below.

Related Posts

Brett Fitzgerald has joined Tess Electrical Sales & Services as sales manager, taking over many of the duties of Karl Gallet, who recently left the…

Rules of the Road: Capt. Jake DesVergers Maritime New Zealand is currently considering how the regulatory regime will apply to yachts visiting New Zealand for…

Rules of the Road: by Capt. Jake Desvergers The New Zealand Maritime Safety Authority, commonly known as Maritime NZ, recently announced major changes to safety…

The fastest way to sell your boat online.

Boat Sales Tax Calculator

Calculate sales tax on a boat by state, estimated boat sales tax.

• THE PRINCESS PASSPORT
• Email Newsletter
• Yacht Walkthroughs
• Destinations
• Electronics
• Boating Safety
• Ultimate Boating Giveaway

• Uncategorized

Florida Boat Sales Tax: Put a Lid on it

• By Daniel Harding, Jr.
• Updated: July 1, 2010

governor Crist

The larger jobs for Florida bill takes effect today, and places an $18,000 cap on the sales tax on boat purchases. Signed into law by Florida Governor Charlie Crist, the change is being hailed as a victory by the marine industry. Florida businesses have been losing sales to other states and foreign countries with a lower sales taxes.

Florida Yacht sales have already seen a boom in anticipation of July 1.

• More: Yachting News Headlines
• More Uncategorized

BoatUS Launches Online Advocacy Tool

Dock Danger

A Dream Fulfilled

3 America’s Cup Hashtags to Follow

Superyacht For Sale: 157-foot Trinity Yachts Tri-Deck

Rediscovering the Legend: Sailing the 12 Metre Intrepid

Riviera 5400 Sport Yacht For Sale

Baltimore’s Inner Harbor Reopens to Boaters After Bridge Collapse

• Digital Edition
• Customer Service
• Privacy Policy
• Terms of Use
• Email Newsletters
• Cruising World
• Sailing World
• Salt Water Sportsman
• Sport Fishing
• Wakeboarding