Sales and Use Tax on Boats
Information for Dealers and Brokers

Definitions

Boat Dealer

A boat dealer is a person or business that sells boats, offers or imports boats for retail sale in Florida, or otherwise has boats in its possession or control for use in this state. A yacht broker also offers boats for sale, but may or may not have the boats in its possession. For sales tax purposes, a boat dealer and yacht broker are the same.

What is Taxable?

All boats sold and/or delivered in this state are subject to Florida's 6 percent sales and use tax, unless specifically exempt. Generally, Florida boat dealers and yacht brokers are required to collect sales tax from the purchaser at the time of sale or delivery.

If a boat is delivered into a county that imposes a discretionary sales surtax, then the dealer must also collect this tax. Discretionary sales surtax applies only to the first $5,000 of the purchase price. For more information, ask for a Discretionary Sales Surtax brochure (Form GT-800019) and a list of surtax counties and rates (Form DR-15DSS).

What is Exempt?

Boats Purchased Exclusively for Resale

A boat dealer or yacht broker who is a registered sales and use tax dealer may purchase boats tax-exempt if the boats are exclusively for resale. The purchaser must present a signed copy of his or her Annual Resale Certificate (Form DR-13) to the seller. This includes boats used exclusively for bare boat charter. A nonresident dealer may purchase a boat for resale tax-exempt if the dealer provides a notarized statement to the seller that the vessel will be immediately removed from Florida and resold. A suggested format for the required affidavit may be found in Rule 12A-1.007(6)(a), Florida Administrative Code. If a dealer uses a boat for any purpose other than to resell it, the boat may then become taxable.

Boats Sold to Nonresidents

A boat may be purchased tax-exempt if it is sold by or through a registered boat dealer or yacht broker to a nonresident who will remove the boat from the state.

The following requirements must be met:

• The purchaser must sign an affidavit stating that he or she has read the law and rules regarding the specific exemption claimed and will 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 purchase. Boat dealers and brokers can purchase decals through DOR's Boat Enforcement Unit (see below) to sell to their customers. This 90-day period may not be extended for any reason.
• Within 5 days of the date of sale, the dealer must provide DOR 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 purchaser must furnish DOR with proof that the boat left Florida. Receipts for fuel, dockage, or repairs purchased outside Florida are acceptable proof, if they identify the boat.
• Within 30 days of removal, the purchaser must furnish DOR with written proof that the boat was licensed, registered, titled, or documented outside the state; or provide evidence that he or she has applied for such.
• 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.

Boats Imported for Sale

If a boat is imported into Florida for the sole purpose of sale at retail by a boat dealer or yacht broker who is registered with DOR, it will be exempt from use tax. The boat must be under the care, custody, and control of the broker or dealer and no personal use may be made of the boat during that time. Chapter 212, Florida Statutes, will determine the taxability of any sale or use of the vessel after its importation. See Technical Assistance Advisement #03A-051, Importing Boats Into Florida Solely for Sale, in DOR’s Tax Law Library.

Boats Imported for Repair

Florida’s Safe Harbor Act allows boat owners to bring their vessels into this state for up to 20 days per calendar year without paying tax on the boat’s purchase price, if:

• The boat is docked at a facility registered with DOR; and
• The facility rents dockage or slippage space in Florida.

Trade-Ins

Dealers or brokers registered with DOR may allow a credit for a trade-in. The taxable amount is the gross selling price minus the credit allowed for the trade-in.

To qualify for a trade-in credit, the following must apply:

• Only tangible personal property (not realty) can be accepted as trade-in credit for other tangible personal property.
• The sale and trade-in must be a single transaction and the trade-in must be taken into the selling dealer's inventory for resale.

Demonstrator Vessels

Vessels used by a dealer, broker, or manufacturer solely for demonstration, sales promotion, or testing purposes may not be subject to sales and use tax. This applies to boats used in fishing tournaments or marine-related events if prospective purchasers will be in attendance. The vessel must be entered in the event in the name of the dealer or manufacturer and be clearly marked for sale at all times. Any vessel transferred from an inventory item to a capital asset for depreciation purposes will be subject to sales tax.

Who Collects the Tax?

Florida boat dealers and yacht brokers must register with DOR to collect and remit sales and use tax before doing business in this state. You can register online; go to the Department's Internet site and click on e-Services. If you do not have Internet access, you can complete a paper Application to Collect and/or Report Tax in Florida (Form DR-1). To obtain this and other DOR forms, see "For Information and Forms."

Persons who represent sellers (brokers) of vessels 32 feet in length or greater should contact the Department of Business and Professional Regulation before starting business.

Most local governments also impose registration or licensing requirements and should be contacted before starting business.

Alternative Method for Calculating Estimated Tax

Boat dealers/brokers may use an alternative method to calculate estimated sales tax. To qualify for the alternative method, a dealer must have made at least one sale of a boat with a selling price of $200,000 or more in the state's previous fiscal year (July 1 - June 30). Dealers must apply before October 1 of each year and be approved by the Department to use this alternative method. To apply, complete Form DR-300400, Boat, Motor Vehicle, or Aircraft Dealer Application for Special Estimation of Taxes.

Reference Material

Tax Laws

Call Taxpayer Services to request a copy of Rule 12A-1.007, Florida Administrative Code, Aircraft, Boats, Mobile Homes, and Motor Vehicles; Rule 12A-1.0641, F.A.C., Sales of Vessels Used in Interstate or Foreign Commerce or for Commercial Fishing Purposes; and Rule 12A-1.071, F.A.C., Rentals, Leases, or License to Use Tangible Personal Property. Tax laws are also available on DOR's Internet site. Look for the Florida Tax Law Library.

Brochures

The following brochures are available from your local DOR service center, the DOR Distribution Center, or Taxpayer Services:

• Florida’s Sales and Use Tax
• Discretionary Sales Surtax
• Boat Owners and Purchasers

For Information and Forms

Boat Enforcement Unit
Florida Department of Revenue
P.O. Box 6417
Tallahassee FL 32314-6417
Telephone: 850-487-3273
Fax: 850-487-0969

Information and forms are available on our Internet site at www.myflorida.com/dor.

Persons with hearing or speech impairments may call the TDD line at 800-367-8331 or 850-922-1115.

• Order multiple copies of forms from our Internet site at www.myflorida.com/dor/forms or
• Fax form requests to the DOR Distribution Center at 850-922-2208 or
• Mail form requests to:
  

  Distribution Center
  Florida Department of Revenue
  168A Blountstown Hwy
  Tallahassee FL 32304-2702