On July 1, 2010, the Florida invoice for the sale and use of yachts tax entered into force. The maximum amount of tax collected is $ 18,000, which means that yachts over $ 300,000 will not be subject to additional tax (including extra charges for the counties). Florida has previously taxed yachts at 6% of the purchase price. When you consider that a $ 1,000,000 yacht paid only $ 60,000 in sales tax, this forced many owners to change flags and states to avoid paying this tax.
Florida is considered an excellent area in which to place a yacht, which makes this new drop in sales / use tax very attractive. That is why many yacht owners prefer to keep their yachts in this state:
• Centrally located to many destinations such as Florida Keys, the Bahamas and the Caribbean
• Many private and resort docks
• Perfect climate for year-round yachting
• Home for every yacht support and imaginary product
• Central marketing and sales center
Up to this amount of sales tax, many luxury yacht owners would avoid paying 6% of the sales tax by registering a yacht in another country, such as the British Virgin Islands or the Cayman Islands, by allowing them to enter Florida with a cruising permit. This act also excludes payment of US debt (1.5% of the value of the yacht). The disadvantage of this registration is:
• the need to export the vessel annually for re-obtaining another cruise permit
• The costs of creating and maintaining an external registry are not cheap.
• Restrictions on the possibility of selling - which are “unavailable for sale to residents of the United States while in the waters of the United States”
Non-tenants can avoid paying Florida sales tax and use, provided they remove the boat from the waters of Florida for a set period of time after purchase. If they are registered in another US jurisdiction and leave the boat from Florida within 6 months; they can then return the boat to Florida without tax (although they must register it in Florida after staying in state waters for a certain period of time). However, if they want to sell a boat in Florida, they are limited to placing a vessel under the care of a broker and cannot use the boat.
By limiting reliably high yacht taxation and limiting quantity, Florida opened the door for many yachts to stay in its waters and enjoy not only year-round cruise opportunities, but also allow long-term use and unlimited sales and chartering. This will encourage many owners to stay in Florida, which will encourage the services on which the yachts depend.
