Boat

Oct 22, 2014
20,989
CAL 35 Cruiser #21 moored EVERETT WA
the most stressful transaction that I have ever done. Worst than buying a house.
Sorry to hear that, but I understand. It is supposed to be one of the two best experiences in boat ownership.
May the process all work out and you enjoy the first sundown you own the boat without stress.
 
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NYSail

.
Jan 6, 2006
3,048
Beneteau 423 Mt. Sinai, NY
Call them and ask...... Also, Is tax paid in state where boat will reside?? Make sure you do research and know....

Congrats!

This too shall pass.....
 
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Apr 11, 2010
946
Hunter 38 Whitehall MI
Congratulations.
As the owner of the same boat I think you will love her.

Sorry I can’t help you on your question. Ours is Federally documented and the documentation number is afixed to the hull as stipulated. It is also state of Michigan registered and under Michigan rules the state sticker must be afixed to the hull. What we don’t have to do is place the state registration number (in our case it’s a number beginning with MC) on the hull. I do carry a copy of the documentation certificate aboard along with the state registration paperwork.
 
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Jan 11, 2014
11,321
Sabre 362 113 Fair Haven, NY
A little history lesson.

Back in the day it was the buyer's responsibility to accurately report the purchase price to the various state agencies that collect sales tax and register boats.

Surprise, surprise, someone realized that boaters (of course not sailors ;)) were not accurately reporting the purchase price and thereby depriving the states of the tax due on the sale. This was not an issue with brand new boats, but with the secondary market, i.e., used boats.

I'm told that in the past sellers and buyers would do things like sell the hull only and write separate receipts for the sales, mast, rigging etc. Or the buyer would simply report a purchase price that was lower than the actual purchase price in order to reduce the tax burden. I have no actual or verifiable knowledge of these practices, that's my story and I'm sticking to it.

Once states became wise to this alleged practice they started requiring brokers to collect the sales tax on the preowned boats they sold. NY was one of those states, it would not be inconceivable that Florida was another state that adopted this practice.

Thus, your broker collected the taxes and passed them on to the great state of Florida.

If your boat is going to be documented, it is not legal to display any registration numbers. However, the state may require a registration sticker be displayed. The likelihood of you being harassed by any law enforcement agency is low so I wouldn't worry too much about having all the t's crossed and i's dotted. You should be able to get a registration sticker from the broker when he registers the boat and pays the sales tax on your behalf. The documentation agency should send you evidence that you have applied for USCG documentation. One practice is to submit an owner addressed postcard along with the documentation application. The USCG will stamp the postcard to indicate the application has been submitted and is pending and mail it back to you.

Enjoy your new boat! Happy sailing.
 
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Jan 11, 2014
11,321
Sabre 362 113 Fair Haven, NY
Tax can be paid where you plan to keep your boat (State) and we are located in Alabama but buying in Florida. We plan to keep her in Florida so we are paying taxes in the great state of Florida. We could have paid the taxes for Alabama instead but legally she is suppose to be moved to Alabama during this period or at least this is what we were told.
States usually have a time limit on how long a vehicle (boat, car, rv, etc.) can be used in a state before requiring it to be registered. States will not charge sales tax when registering the boat if sales tax has been paid in another state. They will charge the difference, so if you buy a boat in a 6% state and then move it to an 8% state they may want the difference. Again, states vary in this policy and I believe there are time constraints.
 
Dec 25, 2000
5,702
Hunter Passage 42 Shelter Bay, WA
Congrats on your new boat. Hope she brings you immense pleasure.

Different boat and state (WA) here. Ours is documented, too. No need here to stick or place the state registration number anywhere on the boat other than where I keep all our paperwork. I installed our documentation number in the bilge on a small plastic sheet that I secured to the bilge bulkhead as the CG requires. The boat tab that is part of the state registration I stuck to our bow roller. The tab is renewed each year as is our documentation renewal, which used to be free, but now is $26 per annum.
 
Jun 21, 2004
2,532
Beneteau 343 Slidell, LA
You can check with the Florida Department of Motor Vehicles- Boat Section for advice to ensure that the broker is giving you correct information. I would hope that a certified Florida broker would know the procedure for collecting taxes, registering the boat thru the Florida DMV, as well as USCG documentation and the need (if any) to display any state registration decals.
In Louisiana, my boat sale was between two private individuals and was legally considered a "casual sale." Because there was no broker involved in the transactions, I personally took care of the tax documentation thru the local tax collector as well as the LA department of revenue. I also had the boat registered with the LA Dept of Wildlife & Fisheries boat registration department, and I also took care of the USCG documentation process. It took an entire day for me to complete the process, in person. If the broker is taking care of all of this for you, I would check to determine if there is a fee for processing the paperwork for you; if the broker is including all of the paperwork in the brokerage fee, I would let them proceed. I would also check with the bank to determine how much they are charging for the USCG documentation; it is just a matter of completing the necessary forms, getting them notarized and mailing to the documentation center with the application fee. Some businesses charge a fairly expensive fee for processing this simple paperwork with the USCG. All of the necessary USCG forms are available online. In LA, your boat has to be registered (not titled) with the DWLF if the boat is USCG documented ( the USCG certificate is the title). The state issues registration numbers and a decal that are renewed bi annually. The USCG certificate must be renewed annually; however, there is a five year documentation certificate that is in the works. No decals are issued by the USCG. On future Coast Guard renewals, be careful, because there are several firms that send out official looking letters to renew the certificate at a higher fee than the $26 that the Coast Guard charges. Because my boat is USCG documented, I only display the state registration decal, not numbers, on the port & stbd bow. The home port is displayed on the stern and a plastic sign with the USCG documentation numbers is bonded to the hull inside a lazarette to comply with USCG demands. All of the state and USCG documents are kept on board in the event that I am boarded by either LA agents or the Coast Guard. Duplicates are kept at home. Good luck with the purchase; hope all works out well. After completing the transactions on Friday, have a sundowner onboard and enjoy your boat!
 
Feb 26, 2004
22,759
Catalina 34 224 Maple Bay, BC, Canada
Go to www.cruisersforum.com and do a search on Florida taxes. It'll boil your brain.

There is a recurring question that comes up about this whole Florida tax thing.

Mindboggling.

Good luck.

But the best thing is to do your own research and find out, FROM THE TAX GUY'S OWN WEBSITES, what THE RULES actually are.
 
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Oct 22, 2014
20,989
CAL 35 Cruiser #21 moored EVERETT WA
When I doubt look it up.

Florida has a Sales tax or a Use tax. Florida ask the broker or dealer to collect it and then pay the State.
You may be under an Exemption status, depending on what you plan to do.

This document was printed in 2017. There may be additional changes in the law.
Florida Department of Revenue, Sales and Use Tax on Boats – Information for Dealers and Brokers,
http://floridarevenue.com/Forms_library/current/gt800005.pdf
What is Exempt?
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.
The nonresident purchaser must meet the following requirements:
 The nonresident purchaser must sign an affidavit (Form GT-500003) stating that he or she has read the law and rules regarding the specific exemption claimed and agrees to remove the boat from Florida.
 A boat of less than 5 net tons of admeasurement must leave Florida within 10 days of purchase or immediately be placed in the care, custody, and control of a registered repair facility for repairs, additions, or alterations. The boat must leave Florida within 20 days after completion of the repairs.
 If the boat is 5 net tons of admeasurement or larger, the purchaser may obtain a set of Florida Department of Revenue boat decals, which authorize the boat to remain in Florida waters up to 90 days after the purchase. This period may be extended to 180 days with the purchase of a 90-day extension decal. The decals must be obtained from the selling dealer or broker.
 Within 5 days of the date of sale, the dealer or broker must provide the Department with a copy of the invoice, bill of sale, and/or closing statement, and the original, signed, removal affidavit.
 Within 10 days of removing the boat, the nonresident purchaser must furnish the Department with proof that the boat left Florida. Receipts for fuel, dockage, or repairs purchased outside Florida must identify the boat.
 Within 30 days of removal, the nonresident purchaser must provide the Department with written documentation evidencing that the boat was documented, licensed, titled, or registered outside Florida or documentation that the nonresident purchaser has applied for documentation, licensing, titling, or registration of the boat.

This exemption does not apply to a Florida resident, an entity where the controlling person is a Florida resident, or a corporation where any officers or directors are Florida residents.
Documentation must be mailed to:
Florida Department of Revenue Compliance Campaigns
PO Box 6417
Tallahassee FL 32314-6417
 
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JRT

.
Feb 14, 2017
2,037
Catalina 310 211 Lake Guntersville, AL
That process seems similar to what we were told when we looked at a new boat purchase in St Augustine and it would stay in FL. The bank is vested in making sure the boat has a clear title so that seems resonable to me also.
 
Jan 30, 2012
1,123
Nor'Sea 27 "Kiwanda" Portland/ Anacortes
Your bank is probably using a third party documentation service close the transaction and prepare the preferred mortgage and documentation application. This amounts to a relatively simple escrow where the service prepares the bill of sale, mortgage and such like.

If it we me I would have that service distribute the tax to Florida so you receive the state tax receipt, state registration (having paid the use tax) in addition to your certificate of documentation. I am sure the broker will agree to this and I imagine your lender will probably insist the state tax gets paid via the service. The obvious idea is to prevent the use tax from getting overlooked.

Charles
 
Jun 21, 2004
2,532
Beneteau 343 Slidell, LA
Have to agree with Charles, it would be good to have one firm ie., bank, third party documentation service, or broker handle all of the paperwork and tax related matters to stream line the paperwork trail, instead of having multiple firms each handling a part. My guess is that since the bank will hold the ship's mortgage, they will dictate how the process proceeds. (same as when buying a house). However, I have read on a Florida government website that " the broker or dealer will collect sales tax at the time of sale"; therefore, the brokerage firm may be legally bound to collect the tax instead of the bank or third party service. Again, I think the best thing would be to call the appropriate government department to determine the proper protocol. With regards to the Florida sales / use tax, since the boat will be moored in Florida, the owners have opted to pay Florida sales tax. There should be no use tax liability. Of course, the Florida boat registration department will charge a nominal fee to register the boat in Florida and issue Florida numbers and decals.
 
Jul 27, 2011
4,988
Bavaria 38E Alamitos Bay
I’ve been gone from FL for awhile. But when we bought our boat there it was already USCG documented. If I remember, we could not get the new FL decals until the boat was properly redocumented b/c the Certificate of Documentation is essentially the “title” for the vessel. I know some things may have changed. Certainly with the documentation office they have. But I would be surprised if you could complete the FL registration w/o the Certificate (i.e., title).

Would you be cited if stopped w/o decals. The CG might well give you a pass on the documentation in progress. The Florida Marine Patrol, I don’t know. I would call them directly and ask. But, you might just get a mushy answer that’s not helpful. It ultimately comes down to what the two FMP officers decide on hearing your explanation. It’s a toss-up. I can imagine that they hear dozens of phony, or otherwise unacceptable, explanations every year as to why a vessel is lacking current decals, etc. But I see them as mostly working the power boat end of the enforcement spectrum.
 
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