Was a yacht used outside Florida for more than six months subject to use tax when brought into Florida?

Plain-English summary

A Florida resident contracted through a company to buy a motor yacht outside Florida and planned continuous use in New England for more than six months before bringing it into Florida.

Florida's statute presumed that property used in another U.S. jurisdiction for six months or longer before importation was not purchased for Florida use. The owner had to document the qualifying outside use and, when applicable, payment of tax lawfully imposed there.

The corporate officer's Florida residency alone did not rebut that presumption, so importing the yacht after the qualifying use did not trigger Florida use tax on the presented facts.

What this means for you

The six-month rule is evidence-driven. Purchase location, actual continuous outside use, the other jurisdiction's taxing authority, and records of any tax paid all matter.

Common questions

Was Florida residency enough to create tax? No. Residency alone did not overcome the presumption.

What evidence was required? Documentary proof of at least six months' outside use under taxable conditions and any lawfully imposed tax paid there.

Did merely keeping the yacht outside Florida qualify? The ruling focused on actual use in another taxing jurisdiction, not location alone.

Citations and references

• Fla. Stat. § 212.06(8)(a) (six-month out-of-state-use presumption)
• Fla. Admin. Code r. 12A-1.007(2)(a) (documentation and outside-jurisdiction conditions)
• Fla. Stat. § 212.05 (sales and use tax)
• Fla. Stat. § 213.22 (Technical Assistance Advisements)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 05A-048

Original ruling text

SUMMARY
QUESTION: Is a boat purchased outside of Florida, and used outside of Florida subject to Florida's use tax upon
importation into Florida.
ANSWER - Based on Facts Below: No. The boat was purchased outside of Florida and used in a taxing jurisdiction
for six months or longer under conditions that would give rise to that taxing jurisdiction's imposition of a tax. The
Florida residency of the corporate officer alone is not sufficient to overcome the presumption in section 212.06(8), F.S.

November 18, 2005

Re: Technical Assistance Advisement 05A-048
Sales and Use Tax
XXX ("Taxpayer") (Petitioner)
Taxpayer Identification Number XX
Taxpayer's Address: XX
Section 212.02, Florida Statutes (hereinafter, "F.S.")
Section 212.06, F.S.
Subsection 212.21(2), F.S
Rule 12A-1.007(2)(a), Florida Administrative Code
(hereinafter, "F.A.C.")
Dear:
This is in response to your correspondence to the Department, dated August 10, 2005, requesting the Department's
issuance of a Technical Assistance Advisement (hereinafter, "TAA") pursuant to Section 213.22, F.S., and chapter 1211, F.A.C., regarding to the purchase and subsequent importation of a vessel for use or storage for use in Florida. An
examination of your letter established that you complied with the statutory and regulatory requirements for issuance of
a TAA. Therefore, the Department is hereby granting your request for issuance of a TAA.
ISSUE
If a yacht enters Florida waters after being used in other U.S. states for six months or longer, will the Company (or the
Taxpayer) be subject to any Florida sales or use tax?
FACTS
Your letter provides the following:

1. Taxpayer, a resident of Florida, contracted to purchase a XXX motor[ ]yacht (the "Yacht").

2. Taxpayer intends to form a company (the "Company") to acquire title to the Yacht, and will assign the purchase
agreement to the Company.

3. Purchase of the Yacht will be through a dealer.
4. The purchase and sale, including the transfer of title, will take place in the State of North Carolina and North
   Carolina sales tax will be paid on the transfer.
5. Post-closing, the Yacht will be federally documented with the United States Coast Guard in the ownership of the
   Company. No state registration of the Yacht is contemplated at this time.
6. After purchase, the Yacht will be used in New England continuously for a period in excess of six months.
7. A saltwater fishing license fee will not be required to be paid on the Yacht pursuant to [Subs]ection 372.57(7), F.S.,
   either directly or indirectly.
   You respectively refer to TAA 04A-007, dated February 2, 2004, TAA 03A-051, dated October 28, 2003, and TAA
   01A-033, dated June 18, 2001.
   LAW
   Section 212.02, F.S, provides the legislative definition of terms used in Chapter 212, F.S., and subsection
   212.02(15)(a), F.S., provides the definition of the term "Sale", and provides:
   "Sale" means and includes:
   (a) Any transfer of title or possession, or both, exchange, barter, license, lease, or rental, conditional or otherwise, in
   any manner or by any means whatsoever, of tangible personal property for a consideration.
   The declaration of legislative intent for Chapter 212, F.S., tax on Sales, Use, and Other Transactions, is contained in
   subsection 212.21(2), F.S., and provides in relevant part:
   It is hereby declared to be the specific legislative intent to tax each and every sale, admission, use, storage,
   consumption, or rental levied and set forth in this chapter, except as to such sale, admission, use, storage,
   consumption, or rental as shall be specifically exempted therefrom by this chapter subject to the conditions
   appertaining to such exemption.... (e.s.)
   Section 212.02, F.S., contains the definitions for the purposes of Chapter 212, F.S., and provides, in pertinent part:

(4) "Cost price" means the actual cost of articles of tangible personal property without any deductions therefrom on
account of the cost of materials used, labor or service costs, transportation charges, or any expenses whatsoever.

***
(12) "Person" includes any individual, firm, copartnership, joint adventure, association, corporation, estate, trust,
business trust, receiver, syndicate, or other group or combination acting as a unit and also includes any political
subdivision, municipality, state agency, bureau, or department and includes the plural as well as the singular number.

(15) "Sale" means and includes:
(a) Any transfer of title or possession, or both, exchange, barter, license, lease, or rental, conditional or otherwise, in
any manner or by any means whatsoever, of tangible personal property for a consideration.

(20) "Use" means and includes the exercise of any right or power over tangible personal property incident to the
ownership thereof, or interest therein, except that it does not include the sale at retail of that property in the regular
course of business....
Section 212.05, F.S. provides, in part:
It is hereby declared to be the legislative intent that every person is exercising a taxable privilege who engages in the
business of selling tangible personal property at retail in this state,... or who stores for use or consumption in this state
any item or article of tangible personal property as defined herein....
(1) For the exercise of such privilege, a tax is levied on each taxable transaction or incident, which tax is due and
payable as follows:

(b) At the rate of 6 percent of the cost price of each item or article of tangible personal property when the same is not
sold but is used, consumed, distributed, or stored for use or consumption in this state....

Section 212.06, F.S., provides, in pertinent part:
(1)(a) The aforesaid tax at the rate of 6 percent of the retail sales price as of the moment of sale, 6 percent of the cost
price as of the moment of purchase, or 6 percent of the cost price as of the moment of commingling with the general
mass of property in this state, as the case may be, shall be collectible from all dealers as herein defined on the sale at
retail, the use, the consumption, the distribution, and the storage for use or consumption in this state of tangible
personal property or services taxable under this chapter....

(2)...(b) The term "dealer" is further defined to mean every person, as used in this chapter, who imports, or causes to
be imported, tangible personal property from any state or foreign country for sale at retail; for use, consumption, or
distribution; or for storage to be used or consumed in this state.

(d) The term "dealer" is further defined to mean any person who has sold at retail; or used, or consumed, or
distributed; or stored for use or consumption in this state, tangible personal property and who cannot prove that the
tax levied by this chapter has been paid on the sale at retail, the use, the consumption, the distribution, or the storage

of such tangible personal property....
(4) On all tangible personal property imported or caused to be imported from other states, territories, the District of
Columbia, or any foreign country, and used by him or her, the dealer, as herein defined, shall pay the tax imposed by
this chapter on all articles of tangible personal property so imported and used, the same as if such articles had been
sold at retail for use or consumption in this state. For the purposes of this chapter, the use, or consumption, or
distribution, or storage to be used or consumed in this state of tangible personal property shall each be equivalent to a
sale at retail, and the tax shall thereupon immediately levy and be collected in the manner provided herein, provided
there shall be no duplication of the tax in any event. (e.s.)

(6) It is however, the intention of this chapter to levy a tax on the sale at retail, the use, the consumption, the
distribution, and the storage to be used or consumed in this state of tangible personal property after it has come to
rest in this state and has become a part of the mass property of this state.
(7) The provisions of this chapter do not apply in respect to the use or consumption of tangible personal property or
services, or distribution or storage of tangible personal property for use or consumption in this state, upon which a like
tax equal to or greater than the amount imposed by this chapter has been lawfully imposed and paid in another state,
territory of the United States, or the District of Columbia. The proof of payment of such tax shall be made according to
rules and regulations of the department. If the amount of tax paid in another state, territory of the United States, or the
District of Columbia is not equal to or greater than the amount of tax imposed by this chapter, then the dealer shall
pay to the department an amount sufficient to make the tax paid in the other state, territory of the United States, or the
District of Columbia and in this state equal to the amount imposed by this chapter.
(8)(a) Use tax will apply and be due on tangible personal property imported or caused to be imported into this state for
use, consumption, distribution, or storage to be used or consumed in this state; provided, however, that, except as
provided in paragraph (b), it shall be presumed that tangible personal property used in another state, territory of the
United States, or the District of Columbia for 6 months or longer before being imported into this state was not
purchased for use in this state.... (e.s.)
Rule 12A-1.007(2)(a), F.A.C., provides, in part:
(2) Purchases Outside Florida.
(a) There shall be a presumption that any aircraft, boat, mobile home, motor vehicle, or other vehicle purchased in
another state, territory of the United States, or the District of Columbia but titled, registered, or licensed in this state is
taxable except as otherwise provided in subsection (25) of this rule. This presumption may be rebutted only by
documentary evidence that the person owning the aircraft, boat, mobile home, or motor vehicle purchased the aircraft,
boat, mobile home, or motor vehicle in another state, territory of the United States, or the District of Columbia six (6)
months or more prior to the time it is brought into this state. In order for such property to be presumed exempt as
purchased for use outside Florida, the person owning the aircraft, boat, mobile home, motor vehicle, or other vehicle
must provide documentary proof that such property was used in other states, territories of the United States, or the
District of Columbia for six months or longer under conditions which would lawfully give rise to the taxing jurisdiction of

another state, territory, or District of Columbia and any lawfully imposed tax was paid to such state, territory, or District
of Columbia before being imported into this state.... (e. s.)
DISCUSSION AND ANALYSIS
When property enters Florida for use in Florida, Florida asserts its "use" tax on the importation or storage for use in
Florida. This use tax is "... due on tangible personal property imported or caused to be imported into this state for use,
consumption, distribution, or storage to be used or consumed in this state,..." s. 212.06(8)(a), F.S. The use tax
provisions carry a specific exception to the imposition: "... it shall be presumed that tangible personal property used in
another state, territory of the United States, or the District of Columbia for 6 months or longer before being imported
into this state was not purchased for use in this state." (e. s.) Id.
Rule 12A-1.007(2)(a), F.A.C., supplies an administrative interpretation of section 212.06, F.S. It provides that the
person owning a boat purchased outside Florida, for use outside Florida, must provide documentary proof that the
boat purchased outside Florida, for use outside Florida, was in fact used outside Florida under conditions that would
give rise to the taxing jurisdiction of another state, territory, or District of Columbia. Additionally, the person owning a
boat under the aforementioned conditions must provide documentary evidence that, if the laws of that state so
provide, any lawfully imposed tax was paid to such state, territory, or District of Columbia before the boat was
imported into this state.
In response to your question, the Florida residency of the owner of the corporation is not alone sufficient to rebut the
presumption found in paragraph 212.06(8)(a), F.S. The importation into Florida for use in Florida would not be subject
to a use tax in Florida.
This response constitutes a Technical Assistance Advisement under section 213.22, F.S., which is binding on the
Department only under the facts and circumstances described in the request for this advice, as specified in section
213.22, F.S. Our response is predicated upon those facts and the specific situation summarized above. You are
advised that subsequent statutory or administrative rule changes or judicial interpretations of the statutes or rules
upon which this advice is based may subject similar future transactions to a different treatment from that which is
expressed in this response.
You are further advised that this response, your request and related backup documents are public records under
Chapter 119, F.S., which are subject to disclosure to the public under the conditions of section 213.22, F.S.
Confidential information must be deleted before public disclosure. In an effort to protect confidentiality, we request you
provide the undersigned with an edited copy of your request for Technical Assistance Advisement, the backup
material and this response, deleting names, addresses and any other details which might lead to identification of the
Taxpayer.
Your response should be received by the Department within 15 days of the date of this letter.
Sincerely,

Jimmy Kalfas
Senior Tax Specialist
Technical Assistance and Dispute Resolution
P.O. Box 7443
Tallahassee, FL 32314-7443
(850) 922-4845
Facsimile (850) 921-2983
Record No.: 15804