Monday, May 17, 2010
Florida Sales Tax Cap
Boat Sales Tax Cap passes both Florida State House and Senate.
The proposed boat sales tax cap has passed both the Florida State House and Senate and is part of the larger jobs for Florida Bill. The bill has now been forwarded to the Governor of Florida, Charlie Crist, who has fifteen days from the time he receives the bill to sign it into law, which would take effect July 1, 2010. Governor Crist has voiced his support for the Florida Jobs Bill.
This proposed bill will cap the tax on the purchase of vessels in the State of Florida to a maximum of $18,000.00. The intent of the bill is to encourage the purchase and US flagging of larger yachts in the State of Florida, that otherwise would be doing an offshore registration and documentation of the vessel due to the 6% sales tax that is currently being enforced. Any boat over $300,000.00 will benefit from the proposed bill. The $18,000.00 cap is derived from the amount that it costs to do an offshore corporation for a vessel. The state of Florida realized, through the efforts of the Florida Yacht Brokers Association and the Marine Industries Association of South Florida, that instead of these boats going offshore to do a closing, in nearby Bahamas, that it would be better to retain this revenue for the State and provide a tax break for yacht owners at the same time.
The key benefits for yacht owners, beside the huge savings in taxes, will be in the costs associated to moving the vessels to a foreign location, arranging crew, and crew accommodations. As long as the boat is US registered and the appropriate sales tax has been paid, the boats will no longer be required to have cruising permits in the states and they will be able to stay indefinitely. Hiring crew will also be less hassle for captains and owners as it will be easier to obtain and retain good crew with vessels legally located in prime South Florida Marinas. Completing refits, organizing detailing, and standard maintenance issues will also be more easily arranged while the yachts are positioned in the US.
re easily arranged while the yachts are positioned in the US.
The proposed boat sales tax cap has passed both the Florida State House and Senate and is part of the larger jobs for Florida Bill. The bill has now been forwarded to the Governor of Florida, Charlie Crist, who has fifteen days from the time he receives the bill to sign it into law, which would take effect July 1, 2010. Governor Crist has voiced his support for the Florida Jobs Bill.
This proposed bill will cap the tax on the purchase of vessels in the State of Florida to a maximum of $18,000.00. The intent of the bill is to encourage the purchase and US flagging of larger yachts in the State of Florida, that otherwise would be doing an offshore registration and documentation of the vessel due to the 6% sales tax that is currently being enforced. Any boat over $300,000.00 will benefit from the proposed bill. The $18,000.00 cap is derived from the amount that it costs to do an offshore corporation for a vessel. The state of Florida realized, through the efforts of the Florida Yacht Brokers Association and the Marine Industries Association of South Florida, that instead of these boats going offshore to do a closing, in nearby Bahamas, that it would be better to retain this revenue for the State and provide a tax break for yacht owners at the same time.
The key benefits for yacht owners, beside the huge savings in taxes, will be in the costs associated to moving the vessels to a foreign location, arranging crew, and crew accommodations. As long as the boat is US registered and the appropriate sales tax has been paid, the boats will no longer be required to have cruising permits in the states and they will be able to stay indefinitely. Hiring crew will also be less hassle for captains and owners as it will be easier to obtain and retain good crew with vessels legally located in prime South Florida Marinas. Completing refits, organizing detailing, and standard maintenance issues will also be more easily arranged while the yachts are positioned in the US.
re easily arranged while the yachts are positioned in the US.
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