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The State of Florida and sales tax!

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The State of Florida and sales tax!

Old 10-17-2007, 09:11 PM
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Default The State of Florida and sales tax!

In September, I went to Florida and bought a used Venture 34. I had purchased a trailer for it in Texas and towed the trailer to Florida, where I did the paperwork on the boat, loaded it on the trailer and headed west.

Yesterday's mail brought a very firm letter from the Florida tax folks asking for proof that I had moved the boat out of Florida within 10 days of purchase and that it was either registered in another state or in the course of being documented elsewhere. I sent 'em a copy of my trip log along with a credit card statement showing the motel bills and fuel bills for the trip back from Florida. Hawaii handled the registration without having to see the boat, which is lucky. The sale date was 9/21 and the letter was dated October 11th, so they are not messing around here.

When I bought the Jupiter last year, I did not get the same routine. Apparently the difference is the Jupiter was not traded in, so there was not a sales tax credit taken on it.

But, for whatever reason, they wanted proof and they wanted it now.....Every other state I've dealt with on cars and boats has assumed I've complied and that the new state of registration is entitled to the fees. I can understand their attitude if the boat had been operated in the state after my purchase, but it had not. If, as an out of state resident, you buy a car and operate it on the streets of the state of purchase, you either need to pay the tax or get a trip permit. But the boat was on a trailer, so no permit was required.

The bottom line is if you buy a boat from a dealer in Florida, make sure you are prepared to move it and register it quickly. When you buy a boat without tax in Florida, you sign an affidavit stating that you will provide proof of removal from the state and registration elsewhere. That affidavit is notarized, so it does have teeth. All they have to do is to walk into court with it and get a judgment to collect it.

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Old 10-17-2007, 09:16 PM
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Default Re: The State of Florida and sales tax!

CA is pretty much the same.

If you buy something, and plan to register it out of state, you can avoid paying the sales tax by getting a 10 day, one way pass from DMV.

But don't wait until the 9th day to leave. If the CHP pulls you over and they can determine your route, and you didn't make a straight line out of the state, you can be cited and will be forced to pay the full amount of sales tax and DMV fee's.

Good luck!
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Old 10-17-2007, 09:33 PM
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Default Re: The State of Florida and sales tax!

And on this topic, if you buy a used boat in Florida you only pay sales tax on the actual hull and trailer (if applicable). You need an itemized bill showing he price of the hull, motors (if outboard), accesories (everything you can think of), and trailer. It all has to be itemized and notorized with sellers signature. I have dome this twice now and saved thousands in tax. They wont tell you this if you walk in with a bill of sale just showing total purchase price.

"If the seller of a vessel entered the entire selling price of a boat, trailer and motor as the selling price on the transfer portion of the vessel title being transferred, must the new owner pay sales tax on the entire amount?

Yes, sales tax must be paid on the amount entered on the title, unless an itemized bill of sale listing the price of each component of the rig is submitted with the application. In such a case, the owner would only be required to pay sales tax on the boat and trailer."

http://www.hsmv.state.fl.us/dmv/faqboat.html#4



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Old 10-17-2007, 11:03 PM
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Default Re: The State of Florida and sales tax!

Starting my 3rd year in florida. I have to say florida is one of the worst state in regards to stupid civil matters. Maybe there aren't enough real criminal for florida to go after.

They sure have plenty of pencil pusher hassling good citizens.
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Old 10-17-2007, 11:06 PM
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Default Re: The State of Florida and sales tax!

From what I understand (which is not much), Florida apparently gives a buyer a sales tax credit for the value of anything traded in toward the new purchase. As such, there was a "tax credit" given on the boat I bought. Since it was sold to an out of state resident, the sales tax on this transaction was lost to Florida. Before you feel too sorry for Florida, my buying removed it as being something a Florida resident could buy. So, if a Florida resident was looking for a Venture, he could buy another one and Florida could gain its rightful tax. States cannot operate for free and sales taxes are a very large part of the budget of both cities and states.

But the frustrating thing is the lack of uniformity from state to state. Texas will give me a 20 day registration on the trailer for $25.00. California will issue a "trip permit" good for a one way trip out of state, where the permit becomes worthless. It is not a temporary registration, it is only a pass out of California. Arizona has no interest in honoring it, because in spite of supposed reciprocity among states, California sets an example of arrogance. How so? A few months ago, I was stopped for not having a front license plate on a vehicle I own that is registered in California. I live in Hawaii. But I travel to the mainland a lot. is it unreasonable for me to own a car on the mainland? I don't think so. So, I bought it, paid the taxes and the registration. The member of the City of Los Angeles' finest, officer Proctor, told me that I could be cited for driving without a license, because in order to drive a car registered to me, at my address in Hawaii, I had to have a California license. I asked what I was supposed to do in Hawaii? Drive with a California license? He said that ws for the judge to decide.

My favorite moment was when I had a good friend pick up my Talon 22 in Lake Havasu, where it spent 99.9 percent of its life, and bring it to Los Angeles for some work. He was stopped, driving my vehicle which was registered in California because he was towing a trailer registered in Arizona. You can't do that. It does not matter that the trailer had left Arizona for the first time ever. It was being - gasp - towed by a California vehicle! What a bunch of pure, unadulterated horse droppings! This was Officer Godnik of the Needles CHP office who chose to protect the women and children of California from the threat of legally registered vehicles being titled and used in their ordinary State of use.

The moral of the story is to make sure your license, the tow vehicle and the trailer all come from the same state. Otherwise it looks like an opportunity to make money.
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Old 10-18-2007, 05:35 AM
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Default Re: The State of Florida and sales tax!

In Florida, you do indeed only pay tax on the difference if there is a trade-in. Additionally, if you ITEMIZE the sales receipt, you only pay tax on the REGISTERED items, the boat and the trailer. No tax on the outboard motor.
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Old 10-18-2007, 05:47 AM
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Default Re: The State of Florida and sales tax!

UaVaj - 10/17/2007 11:03 PM

Starting my 3rd year in florida. I have to say florida is one of the worst state in regards to stupid civil matters. Maybe there aren't enough real criminal for florida to go after.

They sure have plenty of pencil pusher hassling good citizens.
Since we have no income tax, sales tax is the states bread and butter so yes they will sweat you over it. Its all about the mighty greenback as it is with most us too... If you are unhappy with Florida there are plenty of ways to get out of the worst state...
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Old 10-18-2007, 06:09 AM
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Default Re: The State of Florida and sales tax!

Cracker..as in..take I-95 north? Do you get the feeling that I-95 is an open sewer flowing south??
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Old 10-18-2007, 06:15 AM
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Default RE: The State of Florida and sales tax!

In FL, at least on motor vehicles (of which a trailer is considered a motor vehicle, don't know if a boat is considered a motor vehicle but I would assume so) you are obligated to pay sales tax if you pick up the motor vehicle in FL. If the motor vehicle is delivered out of state you are not obligated to pay sales tax.

If you pick up the motor vehicle in FL, the amount of sales tax you pay is based on the amount of sales tax you would pay in the home state where you will register the motor vehicle. When you actually register the motor vehicle in your home state you are supposed to receive credit for the tax paid in FL. This is called a reciprocal tax.

All but a few states have a reciprocal sales tax agreement with FL. Hawaii is one state that does not have a reciprocal sales tax agreemenet with FL. Instead you probably paid 4% tax of which you will receive no credit. When you pick up a motor vehicle in FL you are required to sign/notarize a affidavit indicating you plan to register the vehicle in another state within so many days. The affidavit is called a DR-123 (dept. of revenue form 123).
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Old 10-18-2007, 06:24 AM
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Default Re: The State of Florida and sales tax!

Of course its the right thing to send FL the information and close the matter. But if you live out of state, as a practical matter FL would never be able to collect anyway.
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Old 10-18-2007, 06:24 AM
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Default Re: The State of Florida and sales tax!

I posted this info in another current thread, but will add it here.

If you do the boat closing 3+ miles off the coast of Florida, you are technically not buying the boat in Florida. Have a photo of the GPS coordinates, and an affidavit signed by the seller and buyer, notarized, stating that the closing took place offshore and out of state.

Since you bought the boat out of state, Florida allows you to bring boats into the state for up to six months minus one day without paying the tax.

You do not have to report the sale to the State of Florida at all, like you would've if you bought it in state.

The brokers all know this loophole. I'm not sure if a dealer would do this on a new sale, but I know when buying used thru a broker, this is an accepted practice.

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Old 10-18-2007, 06:30 AM
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Default Re: The State of Florida and sales tax!

billinstuart - 10/18/2007 6:09 AM

Cracker..as in..take I-95 north? Do you get the feeling that I-95 is an open sewer flowing south??
I was trying to be diplomatic...
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Old 10-18-2007, 06:52 AM
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Default Re: The State of Florida and sales tax!

Footnote to the sales tax "loophole" on itemizing the bill of sale. To take advantage of this, the boat has to come from a private seller, a dealer cannot exclude the motor package from the sales tax. Also, this applies only to outboard motors, not inboards or i/o's.
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Old 10-18-2007, 11:15 AM
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Default Re: The State of Florida and sales tax!

Last boat I purchased in sunny Fla was titled in Montana, which has no sales tax. This whizzed them off real good!
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Old 10-18-2007, 11:20 AM
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Default Re: The State of Florida and sales tax!

kerno - 10/17/2007 9:06 PM
My favorite moment was when I had a good friend pick up my Talon 22 in Lake Havasu, where it spent 99.9 percent of its life, and bring it to Los Angeles for some work. He was stopped, driving my vehicle which was registered in California because he was towing a trailer registered in Arizona. You can't do that. It does not matter that the trailer had left Arizona for the first time ever. It was being - gasp - towed by a California vehicle! What a bunch of pure, unadulterated horse droppings! This was Officer Godnik of the Needles CHP office who chose to protect the women and children of California from the threat of legally registered vehicles being titled and used in their ordinary State of use.
Sorry, that's a whole bunch of horse hockey! The officer was and is wrong. They're just trying to see how much money you want to part with. Kali Revenue dept at work. We pull boats all the time, even thru Kali with different plates on them - different from the semi-tractor. We went thru their weigh/ag stations for 20+ years and never was questioned about that issue.
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Old 10-18-2007, 11:28 AM
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hawknest00 - 10/18/2007 11:20 AM

They're just trying to see how much money you want to part with. Kali Revenue dept at work.
I think you hit the nail on the head there.
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Old 10-18-2007, 03:32 PM
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Default Re: The State of Florida and sales tax!

ESSRTEE8 - 10/18/2007 6:24 AM

I posted this info in another current thread, but will add it here.

If you do the boat closing 3+ miles off the coast of Florida, you are technically not buying the boat in Florida. Have a photo of the GPS coordinates, and an affidavit signed by the seller and buyer, notarized, stating that the closing took place offshore and out of state.

Since you bought the boat out of state, Florida allows you to bring boats into the state for up to six months minus one day without paying the tax.

You do not have to report the sale to the State of Florida at all, like you would've if you bought it in state.

The brokers all know this loophole. I'm not sure if a dealer would do this on a new sale, but I know when buying used thru a broker, this is an accepted practice.
Don't stay a day longer! And if you purchase the boat in Fla and take it out of state, do not return for at least 6 months...if you do, they will collect the taxes..
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Old 11-28-2007, 08:04 PM
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Default Re: The State of Florida and sales tax!

In the above Statement, So does one reg the boat in another state ? if so dont they pay tax in the state they register ?

Or do you park the boat out of state for six months then bring it in and reg it in fl, Seems they alway get their taxes !!

J
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Old 11-28-2007, 08:18 PM
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Default Re: The State of Florida and sales tax!

One thing that was not mentioned. The broker can appy for a permit to have the boat stay in Fl. longer than the ten days as long as the boat is having work done.

Capt. Roger Droukas
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Old 11-28-2007, 09:00 PM
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Default Re: The State of Florida and sales tax!

If your state has a sales tax and you want to register it there you must pay the sales tax. So you either pay it in FL or at home if you have to! Not all states honor the reciprocal agreement with FL!
Best to take it home within 10 days and pay at home when you register.
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