Would Florida use tax apply when a yacht was bought and titled outside Florida, then used in other states for more than six months before entering Florida?

Plain-English summary

A Delaware LLC planned to buy a 77-foot yacht through a dealer, complete the sale and title transfer outside Florida, federally document the vessel, register it in Delaware, and use it in other U.S. states for more than six months before bringing it to Florida.

Florida ruled that the out-of-state purchase itself was outside Florida's sales-tax jurisdiction. Bringing the yacht to Florida later would not trigger use tax if it had first been used for at least six months under conditions giving another state, territory, or the District of Columbia taxing jurisdiction and it was not originally bought for Florida use.

The owner had to be able to substantiate that use and provide evidence of any lawfully imposed like tax paid elsewhere. The six-month rule created a presumption, not an absolute safe harbor: if the Department found an original intent by the LLC or its members to bring, use, or store the yacht in Florida, the presumption could be overcome.

What this means for you

Keep contemporaneous records of the purchase location, title transfer, registration, vessel movements, dates, and use in each jurisdiction. Six months of elapsed time alone is not the full test; the use must occur under another U.S. jurisdiction's taxing authority, and the original purchase cannot be for Florida use.

Common questions

Did Florida sales tax apply to the purchase? No, because purchase and title transfer occurred outside Florida.

Did later Florida entry trigger use tax? Not under the stated six-month qualifying-use facts and absence of Florida-use intent.

Did another state actually have to impose tax? The ruling required qualifying taxing jurisdiction and evidence of any applicable tax paid if imposed.

Citations and references

• Fla. Stat. § 212.06(8)(a) (imported property and six-month presumption)
• Fla. Stat. §§ 90.301, 212.02, and 212.21, as cited in the advisement
• Fla. Admin. Code rr. 12A-1.007 and 12A-1.091 (boats and proof of out-of-state use)
• Fla. Stat. § 213.22 (Technical Assistance Advisements)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 08A-016

Original ruling text

Summary

RULE CITE(S): 12A-1.007(2)(a), and 12A-1.091(2)(a), Florida Administrative Code
QUESTION: Is a boat purchased outside of Florida, and used outside of Florida subject
to Florida’s use tax upon importation into Florida.
ANSWER: If a boat purchased outside of Florida and used under conditions which give
rise to the taxing jurisdiction of other U.S. states for six months or longer before being
brought to Florida, and presuming the boat was not bought for use in Florida will not be
subject to Florida sale or use tax when brought to Florida for use.

June 02, 2008

XXX

Re:

Technical Assistance Advisement 08A-016
Sales and Use Tax
XXX (“Taxpayer”)
Taxpayer Identification Number XXX
Taxpayer’s Address: XXX

Sections: 90.301, 212.02, 212.06, and 212.21, Florida Statutes (“F.S.”)
Rules: 12A-1.007 and 12A-1.091, Florida Administrative Code (“F.A.C.”)
XXX:
This is in response to your correspondence to the Department, dated February 27, 2008,
requesting the Department’s issuance of a Technical Assistance Advisement (hereinafter,

“TAA”) pursuant to Section 213.22, F.S., and Chapter 12-11, F.A.C., regarding 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
Whether a yacht that was purchased in another state and used in other states for six
months or longer before coming to Florida is subject to tax.

Technical Assistance Advisement
Page 3
FACTS
Your letter provides the following statements of fact:
1.

Taxpayer is a Delaware limited liability company.

2.

Taxpayer contracted to purchase a 77 foot Hatteras convertible 2008 (the
“Yacht”).

3.

Purchase of the Yacht will be through a dealer.

4.

The purchase and sale, including the transfer of title, will take place
outside of Florida.

5.

Post-closing, the Yacht will be federally documented with the United
States Coast Guard and registered in Delaware in the ownership of
Taxpayer.

6.

After purchase, the Yacht will be used in other U.S. states for a period in
excess of six months before entering Florida.

7.

A saltwater fishing license fee will not be required to be paid on the Yacht
pursuant to Section 372.57(7), F.S., either directly or indirectly.
TAXPAYER POSITION & REQUESTED ADVISEMENT

The pertinent portion of your letter of February 27, 2008, provides the following position:
. . . Our review of the Florida law (as set forth above) supports the proposition
that, if the Yacht is used in other U.S. states for six months or longer, neither
Taxpayer, nor the Yacht, will be subject to any Florida sale or use tax as a
consequence of bringing, using, or storing the Yacht in Florida thereafter.
In support of this position, you, on behalf of the taxpayer, cited relevant portions of
paragraph 212.06(8)(a), F.S., as well as the relevant portions of Rules 12A-1.007 and
12A-1.091, F.A.C.
Section 213.22, F.S., provides that “. . .[t]echnical assistance advisements shall have no
precedential value except to the taxpayer who requests the advisement and then only for
the specific transaction addressed in the technical assistance advisement . . . .” (see
subsection 213.22(1), F.S.); still, you respectfully referred to TAA 07A-015, dated May
21, 2007; TAA 07A-014, dated May 21, 2007; TAA 05A-048, dated November 18, 2005;
and TAA 04A-007, dated February 2, 2005.

Technical Assistance Advisement
Page 4
LAW
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 . . .
use, storage, [or] consumption . . . levied and set forth in this chapter, except as to
such . . . use, storage, [or] consumption . . . as shall be specifically exempted
therefrom by this chapter subject to the conditions appertaining to such
exemption. . . . (Emphasis supplied.)
Section 212.02(20), F.S., provides, in pertinent part:
“Use” means and includes the exercise of any right or power over tangible
personal property incident to the ownership thereof, or interest therein . . . .
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 . . . 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 . . . . (Emphasis supplied.)
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

Technical Assistance Advisement
Page 5
distribution; or for storage to be used or consumed in this state. (Emphasis
supplied.)

(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. (Emphasis supplied.)

(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. . . .
(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. . . . (Emphasis supplied.)

Technical Assistance Advisement
Page 6
(b) The presumption 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 does
not apply to any boat for which a saltwater fishing license fee is required to be
paid pursuant to s. 372.57(7), either directly or indirectly, for the purpose of
taking, attempting to take, or possessing any saltwater fish for noncommercial
purposes. . . .
Section 90.301, F.S., provides, in part:
(1) For the purposes of this chapter, a presumption is an assumption of fact which
the law makes from the existence of another fact or group of facts found or
otherwise established.
(2) Except for presumptions that are conclusive under the law from which they
arise, a presumption is rebuttable. . . . (Emphasis supplied.)
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. . . . (Emphasis supplied.)
Rule 12A-1.091(2)(a), F.A.C., provides:
The use tax applies to the use in this state of tangible personal property purchased
outside Florida which would have been subject to the sales tax if purchased from
a Florida dealer; provided, however, that it shall be presumed that tangible
personal property used in other states, territories of the United States, or the
District of Columbia for six (6) months or longer under conditions which would
lawfully give rise to the taxing jurisdiction of another state, territory of the United

Technical Assistance Advisement
Page 7
States, or District of Columbia before being imported into this state was not
purchased for use in this state. For purposes of the presumption set forth herein, it
shall be necessary only that the tangible personal property was used under
conditions which would allow such other state, territory of the United States, or
District of Columbia to impose a sales or use tax on the sale or use of that
property regardless of whether any such tax was actually imposed or paid.
DISCUSSION
Florida’s 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 . . .”; see, s. 212.06(8)(a), F.S.
The facts provided in your request dated February 27, 2008, indicate that the purchase of
the Yacht will occur outside Florida. Additionally, the facts provided in your request of
February 27, 2008, indicate that the Yacht will be federally documented with the United
States Coast Guard, registered in Delaware, and used in other U.S. States for more than
six months before entering Florida.
The use tax provisions carry a specific exception to their 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.” Section 212.06(8)(a), F.S.
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 the District of Columbia.
Additionally, the person owning a boat under the aforementioned conditions must
provide documentary evidence that any lawfully imposed tax was paid to such state,
territory, or to the District of Columbia before the boat was imported into this state.
If the Taxpayer, upon request, provides documentation sufficient to substantiate the use
of the Yacht in other U.S. states for six months or longer, together with documentary
evidence of payment of any applicable like tax to a taxing jurisdiction of another state,
territory, or the District of Columbia, if imposed, the Yacht will not be subject to
Florida’s use tax as a consequence of bringing, using, or storing the Yacht in Florida after
its continuous use in other U.S. states for more than six months. If, however, the
Department determines an intent on behalf of the Taxpayer or the Taxpayer’s members to
bring, use, or store the Yacht in Florida, the presumption of Section 212.06(8)(a), F.S.,
may be overcome, and the use tax will be due.

Technical Assistance Advisement
Page 8
CONCLUSION
Based solely upon the facts as stated in this TAA, Florida sales tax will not be due on the
purchase or transfer of title to the Yacht, because the purchase and transfer of title occurs
outside Florida’s taxing jurisdiction. Based on the facts and presuming the Yacht was not
purchased for use in Florida, no Florida sale or use tax will be due on the federally
documented Yacht when brought to Florida for use or for storage to be used following its
use under conditions which give rise to the taxing jurisdiction of other U.S. states,
territories, or the District of Columbia for six months or longer under the current
Taxpayer’s ownership.
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
Tax Law Specialist
Technical Assistance and Dispute Resolution
P. O. Box 7443
Tallahassee, FL 32314-7443
(850) 922-4845
Facsimile (850) 921-2983
Record ID No.: 42604