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Old 10-14-2012
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Purchase, sales taxes, location of purchase, and the laws?

As I get closer to the purchase, I can't help it to notice the multiple lines in ads in Yachtworld from brokers stating that if you buy in NC from out of state you pay no sales tax or the same from FL if only stay 180 days or less. How does that really work?

I am all for tax avoidance, but not for tax evasion. Big difference, and I hope everyone can see that. In other words, if I can legally get away with not paying more for something (taxes), then I will. I don't think there is anyone that can say they love to pay more and pay for taxes if they could help it. Doing it illegally IS NOT an option. I know I am not alone!

OK, os to the specific questions. I live in FL, but I will be looking at boats likely as far north as NC on the east coast and along the gulf and caribbean as well if needed. So, if I buy a boat outside of FL, then I don't pay taxes in that state right? But do I have to pay them in FL (at FL rates) when I come back to register the boat here (will be USCG documented too)? What if the boat spends 180 days or more outside of FL but it is registered in FL when I buy? Like, let's say I buy the boat in FL or NC, want to register it in FL, but it will spend 180 days or more outside of FL in the Bahamas?

I think you can see where I am going with these questions. Any guidance or help would be appreciated. I did do a search, but it did not answer my questions.
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Re: Purchase, sales taxes, location of purchase, and the laws?

The answer is likely covered very well at the Florida Department of Revenue website. Legally avoiding sales tax is not easy, and if you intend to keep the boat in Florida you will pay.

Florida, and most states, allow for credits for taxes paid in other states and only collects the difference if theirs is higher. They do not give credits for taxes paid in other countries so take that into account if purchasing in the Carribean for instance.

I think that I read somewhere that Florida has a max sales tax on boats of somewhere around $18-20K. So, you will save if you are purchasing a boat over $300,000.
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Re: Purchase, sales taxes, location of purchase, and the laws?

Quote:
if you buy in NC from out of state you pay no sales tax or the same from FL if only stay 180 days or less. How does that really work?
If you buy a boat in NC, and you do not keep the boat in NC for more than 30 days (may be more), then NC is NOT entitled to sales tax. The sales tax laws of the state where you eventually keep the boat will apply.

If you keep the boat in a state without a sales tax on boats (there are a few), but then move to a different state with sales tax, then that state will likely hit you for a "use tax" - which is essentially a sales tax, applied after the sale.
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Old 10-14-2012
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Re: Purchase, sales taxes, location of purchase, and the laws?

This subject has been well worked over in other threads>
Avoiding sales tax on purchase of used boat
Tax when buying in Florida foe export.
Florida/Georgia Tax Question
USCG Documention and/or State Reg??
and more...

If you are a Florida resident and bring a boat to Florida you will need to pay the 6% use tax. If you do not pay the use tax at the time you purchase the boat outside of Florida, be sure that you can prove the period during which the boat was not in Florida, or you you may face penalties and interest when you offer the use tax at the time you bring the boat into Florida..
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I'll go read the links. Thanks for posting them.
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