Buying a Boat in Florida but Taking It Out of State?

However, simply living outside Florida does not automatically make the purchase tax-exempt.

The purchaser, the transaction, the vessel, the paperwork, and the vessel's removal from Florida must meet the requirements of Florida law.

The 10-Day vs. 90-Day Rule

This is where boat owners often hear conflicting information.

For a boat that does not qualify for Florida's 90-day removal provision, the vessel generally must be removed from Florida within 10 days after the date of purchase.

If the vessel is placed in the care, custody, and control of a registered repair facility for repairs or alterations, a separate rule generally allows removal within 20 days after the work is completed.

Qualifying Vessels of 5 Net Tons or More

A qualifying boat measuring 5 net tons of admeasurement or more may be eligible for Florida's special 90-Day Removal Affidavit and decal process.

When properly handled, this allows the qualifying nonresident purchaser to keep the vessel in Florida for up to 90 days after purchase while maintaining the sales-tax exemption.

The required Florida Department of Revenue decal must be obtained through the selling dealer or broker and properly affixed to the vessel.

Need More Time? There May Be a 90-Day Extension.

A qualifying purchaser who needs additional time may apply through the selling dealer or broker for an additional 90-day extension decal.

The application is generally made through the selling dealer within 60 days of purchase, and the extension decal currently costs $425.

When properly obtained, it can extend the permitted removal period to a maximum of 180 days after purchase.

Leaving Florida Is Only Part of the Requirement

Taking the boat across the state line does not, by itself, complete the exemption.

The purchaser must also provide Florida with required evidence showing that the vessel actually left the state and that it was titled, registered, licensed, or federally documented outside Florida.

Current Florida requirements include providing:

• Proof that the vessel left Florida, generally within 30 days after removal. Acceptable evidence can include identifiable out-of-state fuel, dockage, slip, or similar receipts.
• Proof that the vessel was titled, registered, licensed, or documented outside Florida, generally within 90 days after departure.
• If the final registration, title, or documentation is not yet available, proof of the application may be required, followed by the final document when received.

The selling dealer or broker also has specific filing responsibilities, including submitting the required affidavit and transaction documents to the Florida Department of Revenue.

The Vessel Cannot Simply Leave and Come Right Back

This exemption is intended for a vessel being removed from Florida, not for a boat to briefly cross into another state and immediately return.

Generally, the vessel cannot return to Florida within six months after its departure without potentially jeopardizing the exemption, subject to specific statutory exceptions.

What Happens If the Requirements Aren't Met?

This is the important part.

If the purchaser fails to remove the vessel within the required period, fails to provide the required documentation, or otherwise fails to satisfy the statutory requirements, the purchaser can become liable for Florida use tax on the vessel.

Florida law can also impose a penalty equal to the tax due when the requirements of the nonresident exemption are not satisfied.

So this is not an exemption where we complete an affidavit at closing and forget about it.

The follow-through matters.

"I'm Not a Florida Resident" Isn't Enough

The exemption has specific residency requirements.

It generally does not apply to a Florida resident. Entity ownership also requires additional consideration because Florida looks at the residency of certain individuals who control or manage the entity.

That means putting the vessel into an LLC does not automatically turn a Florida resident's purchase into a nonresident transaction.

This Is Why We Review the Transaction Before Closing

A nonresident removal exemption should be discussed before the vessel closes, not after Florida sales tax has already become an issue.

We look at the purchaser, ownership structure, vessel, intended location after closing, expected departure date, documentation or registration plans, and whether the transaction appears to meet the requirements for the exemption.

If the transaction qualifies, we help make sure the required paperwork and follow-up requirements are understood.

If it doesn't, we would rather tell you that before closing than have the Florida Department of Revenue tell you later.

Related reading: Florida Boat Sales & Use Tax and Vessel Closing Services.