Florida
Florida imposes a 6% state sales and use tax on vessel purchases, but caps the maximum total tax liability at $18,000. This means any vessel purchased for $300,000 or more will be subject to the exact same $18,000 ceiling, regardless of its total value.
Key details regarding the Florida vessel tax include:
- Discretionary Sales Surtax: In addition to the 6% state tax, local county surtaxes may apply. However, this local surtax is only calculated on the first $5,000 of the purchase price.
- Private and Out-of-State Sales: If you purchase a boat from an individual, or bring an out-of-state boat into Florida for use and storage, the 6% use tax applies. If you paid taxes to another state, you may be eligible for a credit against Florida’s tax.
- Boats Sold to Nonresidents to be removed from Florida: A boat sold by or through a registered dealer or broker to a purchaser who is a nonresident of Florida at the time of taking delivery of the boat in Florida may be exempt. This exemption applies to the sale of a boat, including any accessories, but does not apply to the sale of a boat trailer. To claim the exemption, the nonresident purchaser must provide the selling dealer with an affidavit in which the nonresident purchaser affirms it qualifies for the exemption and attests it will provide the documents required to support the exemption to the Florida Department of Revenue (Department) within the required time periods. A suggested format for the required affidavit is provided in Tax Information Publication TIP 24A01-10R.
For detailed information on filing requirements, consult the official Florida Department of Revenue portal or reference the Florida Sales and Use Tax on Boats Brochure.
Non-Resident Tax Exemption – Click Here for an affidavit form for tax exemption for a vessel sold in Florida to be removed by a non-resident purchaser
Florida Application for Certificate of Title/Vessel Registration – Click Here for Florida form HSMV 82040
Louisiana
The combined state and local sales tax rate on vessels and boats in Louisiana ranges from 9.45% to 11.45%, depending on the exact city and parish. This includes a mandatory 5.00% state sales tax, plus local parish and city tax rates that can range from 4.45% to 6.45%. Louisiana caps the maximum total tax liability at $20,000. Click here for details concerning the Louisiana Sales Tax Cap.
Isolated or Casual Sales: There is no state sales tax due on an isolated or casual sale. Watercrafts that are sold by individuals may be considered an isolated or occasional sale if the seller is not engaged in the business of selling watercrafts. If the seller is selling a watercraft that he no longer uses and he sells it to another individual, this transaction would be classified as an isolated sale. However, if the seller periodically buys a watercraft to resell, then this seller would be considered a “dealer” under Louisiana sales tax laws.
The use of a broker will not necessarily disqualify a transaction from qualifying as an isolated or occasional sale as long as the seller meets the criteria outlined here: Click Here for the Louisiana Department of Revenue Tax Education FAQ page.
Louisiana Application for Certificate of Title/Vessel Registration – Click Here for Louisiana Registration Application.