Sales Tax Cap on Boats Purchased in Florida- Bill Passed
According to the The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
Link to Source: http://www.flsenate.gov/data/session/2010/Senate/bills/analysis/pdf/2010s2454.cm.pdf
The state sales and use tax on aircraft and boats in Florida is levied at a rate 6% of the purchase price or value of the aircraft or boat. The bill provides that the maximum amount of sales or use on an aircraft or boat may not exceed $18,000.
This bill shall take effect July 1, 2010.
Example: A boat is purchased for $1.2 million would have had a tax of $72,000, now the sales tax is capped at $18,000.
“The new Boat Sales-Use Tax Cap limits the 6% Florida state sales tax on a boat purchase, or the use tax for currently owned vessels to $18,000. The change will help Florida save marine industry jobs and increase sales tax revenue. The catalyst for change was struggling boat sales and services businesses, and the loss of revenue the State of Florida was experiencing. Passage of the cap is expected to almost immediately invigorate Florida’s vital marine industry through new sales and encourage of boat owners to register, keep and use their watercraft in state.” (Daszkal Bolton LLP e-newsletter dated June 28,2010)
There are limitations and exemptions on this bill. Contact our firm for more details.