Would a yacht be subject to Florida use tax after at least six months of documented use in another state?

Plain-English summary

Florida ruled that a 106-foot motor yacht could enter Florida without use tax after at least six months of qualifying use in another U.S. jurisdiction.

The yacht was bought outside the United States, later imported through a federal consumption entry so it could be offered for sale or charter to U.S. residents, and stationed in another state before possible Florida entry.

The owner had to document more than physical presence. It needed proof of actual use for six months or longer under conditions giving rise to another state, territory, or the District of Columbia's taxing jurisdiction, plus proof that any lawfully imposed tax was paid before Florida importation. The TAA suggested records such as registration, docking or storage payments, and evidence that the yacht was offered for sale during the period.

What this means for you

Florida's six-month presumption is evidence-driven. Maintain contemporaneous registration, location, operational, sale-or-charter, and tax-payment records before bringing a vessel into the state.

Common questions

Was six months outside Florida enough by itself? No. The owner also had to prove qualifying use and taxing jurisdiction.

Did any other-state tax have to be paid? Any lawfully imposed tax had to be documented as paid.

Citations and references

• Fla. Stat. § 212.06 and Fla. Admin. Code r. 12A-1.007, as quoted and discussed in the advisement.

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 09A-059

Original ruling text

SUMMARY
QUESTION: Whether the taxpayer’s yacht is subject to Florida use tax upon importation into
this state, if Taxpayer provides documentation sufficient to substantiate the prior use of the yacht
in Rhode Island for six months or longer under conditions which give rise to the taxing
jurisdiction of that state.
ANSWER: The taxpayer’s yacht will not be subject to Florida use tax, if the taxpayer provides
documentation sufficient to substantiate the prior use of the yacht in Rhode Island for six months
or longer under conditions which give rise to the taxing jurisdiction of that state.

November 30, 2009

XXX
XXX
XXX
XXX
Re:

Technical Assistance Advisement 09A-059
Sales and Use Tax – Vessel – Use in Florida
Section 212.06, Florida Statutes [F.S.]
Rule 12A-1.007, Florida Administrative Code [F.A.C.]
XXX [Taxpayer]
XXX
XXX
XXX

Dear :
This is a response to your letter of September 9, 2009, requesting a Technical Assistance
Advisement [TAA] regarding the above-referenced matter. This response to your request
constitutes a TAA under Chapter 12-11, Florida Administrative Code [F.A.C.], and is issued to
you under the authority of Section 213.22, Florida Statutes [F.S.].
FACTS
Taxpayer provided the following facts in its letter dated September 9, 2009, and its telephone
conversation with the Department on October 12, 2009:

1. Taxpayer is a XXX corporation.
2. Taxpayer owns a 106-foot motor yacht [the Yacht].
3. The Yacht is registered with the XXX.

Page 2

4. Taxpayer’s purchase of the Yacht took place outside the United States.
5. The Yacht was subsequently brought to the United States.
6. For the purpose of allowing the Yacht to be offered for sale or charter to United States
   residents, a consumption entry was filed with the United States Department of Homeland
   Security, Bureau of Customs and Border Protection, at the time of importation.
7. The Yacht is currently stationed in another state of the United States and will have been
   located in other states of the United States in excess of six months prior to the possible
   importation of the Yacht into Florida.

ISSUE
Whether Taxpayer’s Yacht will be subject to Florida use tax upon importation of the Yacht into this
state.

TAXPAYER’S POSITION & REQUESTED ADVISEMENT
In Taxpayer’s letter dated September 9, 2009, Taxpayer states the following:
. . . Our review of the Florida law [] supports the proposition that if the Yacht is
used in other U.S. states for six months or longer, after importation into the
United States and before entering Florida, Taxpayer will not be subject to any
Florida sale or use tax if the Yacht subsequently enters Florida.
Based upon the Florida law cited herein we respectfully request that the
Department rule in the affirmative….
DISCUSSION AND RESPONSE
The State of Florida imposes a use tax “ . . . 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.
Florida’s 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.” (emphasis supplied) See s. 212.06(8)(a), F.S.
Rule 12A-1.007(2)(a), F.A.C., supplies an administrative interpretation of s. 212.06, F.S. In
order for a boat to be presumed exempt as purchased for use outside Florida, the owner of the
boat must provide documentary proof that the boat was in fact used outside Florida under
conditions that would give rise to the taxing jurisdiction of another state, territory, or District of

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Columbia. 1 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
District of Columbia before the boat was imported into this state.

Taxpayer states that the Yacht is currently stationed in another state of the United States.
Taxpayer states that the Yacht will remain in that state, or other states of the United States, for at
least six months prior to the importation of the Yacht into Florida. Under such conditions, the
Yacht will not be subject to Florida’s use tax at the time of importation into this state, when
Taxpayer provides documentation sufficient to substantiate the following:

1) The Yacht was used in other states of the United States, territories of the United States,
or the District of Columbia for more than six months under conditions that would give
rise to the taxing jurisdiction of those states, territories, or the District of Columbia; and
2) Any lawfully imposed tax was paid to those states, territories, or the District of
Columbia before the Yacht was imported into Florida.
CONCLUSION

The Yacht will not be subject to Florida’s use tax as a consequence of importing it into this state,
if Taxpayer provides documentation sufficient to substantiate the use of the Yacht in other states
of the United States, territories of the United States, or the District of Columbia for six months or
longer under conditions which give rise to the taxing jurisdiction of those states, territories, or
the District of Columbia. Taxpayer must also provide documentation to substantiate that any
lawfully imposed tax was paid to those states, territories, or the District of Columbia before the
Yacht was imported into Florida.
This response constitutes a Technical Assistance Advisement under s. 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 s. 213.22, F.S. Our response is predicated on 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 than 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., and are subject to disclosure to the public under the conditions
of s. 213.22, F.S. Confidential information must be deleted before public disclosure. In an effort
1

For example, the owner could provide proof of vessel registration in another state, proof of payment for docking or
storage in that state, proof that the Yacht was offered for sale during the six-month period in that state, or similar
documentation.

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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.
If you have any further questions with regard to this matter and wish to discuss them, you may
contact me directly at (850) 922-9408.
Sincerely,

Matt Crockett
Tax Law Specialist
Technical Assistance & Dispute Resolution
ID: 71205