GL: How to avoid state sales tax.

[bob Austin]

>From My Florida web site:
http://dor.myflorida.com/dor/taxes/sut_boat_dealer.html  Similar information
is given on the boat owner web site:
http://dor.myflorida.com/dor/taxes/sut_boat_owner.html

"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:

  a.. 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.. 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.
    b.. 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.
  b.. 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.
  c.. 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.
  d.. 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.
  e.. 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."
There is no reason to form a corporation in Deleware or to pay a document
agency.   You can just document the boat--yourself using the internet site:
Even easier if the boat is already documented.  See:
http://www.uscg.mil/hq/gm/vdoc/nvdc.htm  If you self document, then keep
copies of all paperwork, including the bill of sale aboard the vessel until
you get your document.  There is no reason that you cannot use a California
address.  The California tax laws only trigger if you bring the boat into
California waters.  You can use a California hailing port if you wish.

Watch out in buying boats in the South--there have been a lot of hurricanes in
the last 3 years and some damaged boats have been "restored" and may be on the
market.  Be sure and have a very good survery.  DO NOT use a surveyor
suggested by the broker.  Do not trust the broker to give you the straight
story on the boat--so some research on your own in the boat yards or neighbors
of the previous owner.

Have fun,

Bob Austin