how to avoid sales tax on a boat in florida

Jan 17, 2021   |   by   |   Uncategorized  |  No Comments

And unless a boat purchased in Florida will be registered in one of the no-sales-tax states, owners will have to pay sales tax (known as a “use tax”) at their own state’s tax rate when the vessel is registered in their home state. Problem is, most other states also have a sales tax and if FL doesn't get you then they will. Connecticut cut its sales tax from 6.35% to 2.99% on boats, boat trailers, boat motors, and marine-dyed diesel fuel. You can get an extension of the deadline if the boat is in a yard and under repair. The New Hampshire sales tax rate is 0% as of 2018, and no local sales tax is collected in addition to the NH state tax. This exemption can only be offered by licensed Florida brokers who have a Florida Resale Certificate. The 3 Main Types of Taxes that Boat Owners Pay First, there’s the sales tax, which you likely will have to pay when you buy the boat.This sales-tax rate varies from state to state, and the swings can be big. Boats purchased from an individual should be taxed on the hull only if the hull is itemized on the invoice/bill of sale. At the time I lived in North Carolina which does not have sales or use tax on a used boat bought from an individual. Connecticut cut its sales tax from 6.35% to 2.99% on boats, boat trailers, boat motors, and marine-dyed diesel fuel. I dealt with the registration / tax issue recently in FL and it can be a pain. Note: A broker is not a boat dealer by the definition used in NC. When you play by the book, you can't avoid state of Florida sales tax on the boat you sell. Florida Department of Revenue, Sales and Use Tax on Boats Information for Owners and Purchasers, Page 2 Example: If you purchase a boat in a state that has a sales tax rate of 4% , you must pay an additional 2% when you bring the boat into Florida, plus any applicable discretionary sales surtax. North Carolina’s boat sales tax is 3% and capped at $1,500; Alabama’s is 2% but has no cap. A few other popular boat-buying state’s taxes are: California: Varies between 7% to 9% on purchase depending on homeport, plus personal property tax may also be due. The maximum tax of $18,000 will apply. Rhode Island, for example, has no sales tax on boats. If sales tax on the total purchase price of the vessel has not been paid at the time of the registration, payment must be made along with the registration and titling fees. Find your CA Rate by address or by location. Rhode Island, for example, has no sales tax on boats. This allows the buyer to keep the boat in Florida … 2. Florida caps the amount of boat sales tax at $18,000 no matter the purchase price. Small boats have 10 days to leave; larger boats have 90 days. A boat dealer actually take ownership of the used boat, a broker is merely a sales agent for a private owner. Moving a boat out of a no-boat-sales-tax state If the sales tax has been paid, a receipt for payment must be provided to the county tax collector or license plate agent processing the title and/or registration. However if you purchase a used boat from an individual, even if on consignment through a dealer, and the itemized invoice/BOS includes other items (outboard, trailer, etc.) Exemptions to the New Hampshire sales tax will vary by state. Straight from the authorities at the Florida Department of Revenue, "All boats sold, delivered, used or stored in Florida are subject to Florida's sales and use tax, plus any applicable discretionary sales … Connecticut: 2.99% Delaware: 0% Florida: 6% state tax plus 0.5% to 2.5% surtax on the first $5,000. Florida caps the amount of boat sales tax at $18,000 no matter the purchase price. Florida offers a tax exemption to non Florida residents. North Carolina’s boat sales tax is 3% and capped at $1,500; Alabama’s is 2% but has no cap. 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