Did a nonresident owner owe Florida use tax when a yacht entered Florida solely to be sold through a registered Florida yacht broker?

Plain-English summary

Florida found no use tax when a nonresident yacht entered the state solely for sale through a registered Florida yacht broker and remained under the broker's care, custody, and control without personal use. Showing the yacht, maintaining it in sale-ready condition, and taking prospective buyers on demonstration cruises were sale-related activities rather than taxable use on the stated facts.

The listing arrangement had to be real and documented

The Department listed eight safeguards supporting nontaxability:

1. A listing agreement and addendum were effective before importation, or the boat was still within another applicable statutory or rule period when they began.
2. A copy was submitted to the Department's Boat Enforcement Process.
3. No owner, related person, broker, or sublisting broker used the boat personally.
4. Every Florida activity related solely to retail sale.
5. A special ship's log recorded every departure, return, engine-hour reading, and trip purpose.
6. The broker was registered and licensed as a Florida sales-tax dealer.
7. The broker retained care, custody, and control while the boat was in Florida.
8. The broker notified the Department of misuse that might trigger tax.

The ruling also required beginning- and end-of-listing affidavits confirming that the owner and related parties had made no personal use.

Passage of time alone did not trigger tax

Florida said the broker-control ruling was not limited to 90 days and could continue indefinitely while the listed elements remained unchanged. The absence of a quick sale therefore did not by itself create use tax.

Personal use changed the result

If the owner or another covered person used the yacht personally, use tax could apply to the owner. The Department said it would look solely to the boat owner for payment but requested notice from the broker. A prompt replacement listing with another licensed broker could preserve the resale treatment; a Florida pleasure cruise after termination could create taxable use.

Foreign-flagged vessels received the same resale analysis after compliance with applicable federal sale rules, but federal regulations controlled their permitted length of stay.

What this means for you

Nonresident owners and yacht brokers should execute the sale-only agreement before entry, establish actual broker control, prohibit personal use, keep the special log and affidavits, and document Department notice. Calling a visit a sales listing is not enough if the yacht is also used for recreation or general business promotion.

Common questions

Q: Did demonstration cruises create use tax?
A: Not when they related solely to selling that yacht. Activity promoting other vessels or a broader business could be taxable use.

Q: Was there a fixed Florida time limit?
A: No, not under this ruling's broker-control analysis while all conditions remained unchanged.

Q: What if the first listing ended without a sale?
A: A prompt identical listing with another licensed Florida broker could continue the resale treatment; personal use or an interruption inconsistent with sale could change it.

Q: Who owed tax after prohibited personal use?
A: The ruling said the Department would look to the vessel owner, while asking the broker to notify it.

Citations and references

• Fla. Stat. § 212.02(14)(a), (18), and (20) — retail sale, storage, and use
• Fla. Stat. § 212.06(1)(e), (2)(b)-(c), (8)(a), and (12) — dealers and imported property
• Fla. Stat. § 212.07 — dealer collection duties
• Fla. Admin. Code r. 12A-1.007(9)(b) — boats imported into Florida
• HMY New Yacht Sales, Inc. v. Department of Revenue, 676 So. 2d 1385 (Fla. 1st DCA 1996)
• Allied Marine Group v. Department of Revenue, 701 So. 2d 630 (Fla. 4th DCA 1997)
• Fla. Stat. § 213.22 — Technical Assistance Advisements

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 03A-051

Original ruling text

SUMMARY

QUESTION: Will a Florida use tax liability be created when
a boat is imported into Florida solely for the purpose of
sale by a registered Florida yacht broker?

ANSWER - Based on Facts Below: No use tax liability is
created if the yacht is imported into Florida for the sole
purpose of sale at retail by a Florida yacht broker, since
the yacht will immediately be delivered to the care,
custody and control of the Florida yacht broker. This is
also conditioned upon there being no evidence that any
personal use is made of the yacht during its presence in
Florida.

Oct 28, 2003

Re: Technical Assistance Advisement 03A-051
Importing Boats Into Florida Solely For Sale
Sections 212.02(14)(a), (18), (20), 212.06(1)(e)1.,
212.06(2)(b), (8)(a), (12), and 212.07, F.S.
Rule 12A-1.007(9)(b), F.A.C.

Dear :

This is in response to your letter of September 30, 2003, in
which you requested the issuance of a Technical Assistance
Advisement (TAA) pursuant to s. 213.22, F.S., and Ch. 12-11,
F.A.C., regarding importation of boats into Florida solely for
sale by members of the Association. It is your desire for this
advisement to be binding not only upon the Association but also
upon the members of the Association. Therefore, this advisement
is being issued to the Association and its members.

You have requested our advisement concerning the taxability of
boats imported into Florida solely for sale by members of the
Association. You have submitted a series of questions from one
of the members of the Association describing various

transactions involving the importation of boats into Florida for
this purpose. Following an overview of the facts and explanation
of law, each of your questions is listed below with the
Department's response.

Preliminary Facts

[Organization] is a Florida not-for-profit corporation,
organized and is operating to unite and encourage those engaged
in the yacht brokerage business in Florida to promote high
standards of professionalism in their business dealings. Since
its formation, the [Organization] has also been a consistent
force in advancing the public interest in a dynamic and growing
marine industry throughout Florida.

Due to Florida's expanding marine market activities and,
especially, its boat shows, attracting out-of-state boat buyers
in growing numbers, non-Florida boat owners are beginning to see
Florida as a "hot" market for the sale of their own second-hand
boats. However, they have concern for their potential exposure
to Florida sales and use taxation as a result of their bringing
boats to Florida solely to be sold. The [Organization] believes
that such concerns, unresolved, will impede the continued growth
of the second-hand boat market in Florida. Because the 2003
South Florida shows rapidly approach, there is an urgent need
for guidance from the Department to settle these questions, and
perhaps also a need for greater attention to sound tax policymaking by the legislature in this area.

Statement of Facts

Your letter of September 30, 2003, requests advice under the
following set of facts:

1. The member, "A," is a principal in a Florida
   Corporation, "C," which is regularly engaged in the
   yacht brokerage business in Florida. Both C and A are
   duly licensed to engage in business in Florida as
   yacht brokers. C maintains it principal offices in
   Broward County, Florida. C is registered with the
   Department as a dealer pursuant to Chapter 212.

2. A was recently contacted by a customer, "X," an
individual residing in Philadelphia, Pennsylvania.
One year previously, X had been in Florida at the
Annual Yacht and Brokerage Show, and had engaged A's
services (through C) to assist him in purchasing a
yacht. Through A's efforts, a suitable yacht for sale
was located at a price acceptable to X. X formed a
limited liability company ("LLC") under Delaware law,
of which X became the manager and sole member; and the
LLC purchased a yacht through C as its broker.

3. X neither owns nor leases any residential real estate
   in Florida, nor maintains his principal place of abode
   in this state. He has no other business contacts with
   Florida. In past years, excepting last year when he
   spent three weeks in Florida purchasing the yacht, X's
   visits to Florida have been infrequent, and short in
   duration, never lasting more than a week.

4. Upon closing the purchase of the yacht, LLC caused it
   to be documented with the U.S. Coast Guard.
   Wilmington, Delaware was made her designated home port
   and hailing port. LLC is not qualified or authorized
   to do business in any state other than Delaware.

5. LLC's purchase of the yacht was closed in Fort
   Lauderdale, Florida on July 1, 2002; and five (5) days
   later the yacht left Florida for permanent berth in
   Wilmington, Delaware. The sale of the yacht was
   exempt from Florida sales tax pursuant to s.
   212.05(1)(a)2., F.S., all statutory conditions having
   been met.

6. From its date of purchase until the present time, the
   yacht has not entered Florida waters. It has been
   berthed in Wilmington, Delaware, and has been used
   primarily for short cruises in New England and Canada
   for the sole pleasure and recreation of X and his
   family. At no time has the yacht been leased,
   chartered or loaned to any other person or entity, or

used for any commercial purpose.

7. In June 2003, X decided to cause LLC to sell the
   yacht. Finding no purchase interest in the Wilmington
   or Philadelphia areas, X contacted A to see if C would
   like to discuss listing the yacht for sale in south
   Florida.

8. At X's request, A forwarded a standard form of listing
   agreement (the "Agreement") to X. The form had been
   prepared by the [Organization] as a courtesy to its
   members and their customers for their optional use....
   A proposed that LLC and C use this form, together with
   an Addendum... to list the yacht for sale in Florida,
   through C as its broker.

9. The Listing Agreement is virtually open-ended, in that
   it mentions no fixed date of termination. However, it
   is terminable by either party on 90 days advanced
   written notice, subject to a minimum term of 180 days.
   Given X's sale price expectations, A has told X that
   he should be prepared for C's effort to sell the yacht
   and to take at least 6 to 9 months to generate an
   acceptable purchase offer, but that a longer period
   might be necessary. During that time, it is agreed by
   X and A that the yacht would remain at a temporary
   berth in Broward County, Florida, at a commercial
   boatyard owned and operated by Y, a marine services
   firm recommended to LLC by C. In a provision of the
   Addendum to the Listing Agreement, the parties
   acknowledge that the owner has placed the vessel in
   broker's care, custody and control until the listing
   expires or the vessel is sold, whichever first occurs.

10. A has advised X that so long as the yacht is listed
    for sale, and is not used in Florida for any purpose
    other than to show and demonstrate to other brokers or
    prospective purchasers, C will retain its same
    documentation, regardless of how long it should take
    for a sale to be consummated.

11. Eventually, LLC and C signed the Listing Agreement in
the form of Exhibit A with Exhibit B appended and a
contract is formed. However, before signing, the text
was modified so as to provide that LLC will deliver
the yacht to C by (i) berthing it at the agreed
berthing dock location in Broward County, Florida; and
(ii) by delivering a full set of keys to the yacht for
retention at C's principal office.

12. C is one of many licensed Florida yacht brokers
    registered with the Department whose principal offices
    are not situated at a waterfront location. Unlike the
    typical "registered repair facility" in Florida, C
    does not own or control dock space in a high security
    area suitable to berth yachts on which C has sale
    listings. Accordingly, such berthing facilities are
    "out-sourced" by the boat owner, with assistance from
    C in the form of referrals. Typically, at the owner's
    request, C refers its customers to several companies
    having secured facilities which are available for rent
    and are adequate to keep the customer's yacht in a
    secure berth pending its sale. Some of those
    companies also offer collateral services useful to
    boat owners trying to sell their boats. Y, a well
    known marina on the Intracoastal Waterway in Fort
    Lauderdale, at whose dock the yacht will be berthed,
    is such a company. At C's insistence, X makes
    arrangements with Y directly for cleaning services,
    for mechanics to run the engines periodically, and for
    stand-by captain and crew on those occasions when C
    recommends a demonstration cruise on the yacht, for
    the benefit of prospective buyers, while LLC's captain
    and crew are absent.

13. Prior to execution of the Listing Agreement between C
    and LLC, X and A reviewed and discussed its salient
    terms and conditions. LLC indicated the entire crew
    would be retained in service and would remain aboard
    the yacht during the period of the Listing Agreement,
    excepting vacation time away from the yacht. The
    captain's primary duties would be to operate the

vessel, to attend to the security and upkeep of the
vessel and its contents, and to maintain it in a
clean, attractive working condition.

The Listing Agreement also grants C and its brokers
and sub-listed brokers [permission] to board and show
the yacht by appointment "or as otherwise agreed." In
a side letter agreement between C and LLC, copied to
the captain, LLC committed that except for one month
each year when captain and crew would be on vacation,
the boat would be kept in "ready to show" conditions
during all business hours, six days a week, on one
hour notice by A, and A, in his sole discretion, could
authorize demonstration cruises, for prospective
purchasers, subject only to the captain's agreement
that the yacht is in good running order. During the
vacation period, Y would provide captain and crew on
demand by C.

14. In another side letter agreement, LLC and C agreed
    that the boat's captain will assist C in maintaining a
    special ship's log during the period of the Agreement.
    This log will contain facts pertaining to when the
    boat is shown, the date and hour, and the engine hours
    readings, and purpose of trip, on every occasion on
    which the boat leaves and returns to its berth. The
    purpose of the special ship's log is to evidence that
    every use made of the yacht during the listing period
    is in furtherance of its sale and to corroborate that
    LLC is not using the boat for personal benefit of X's
    family or any other person. X agrees to give an
    affidavit, at the beginning and again at the end of
    the listing period, confirming that he and his family
    will not use (and confirming that they have not used)
    the boat during the listing period. The form of the
    special ship's log, and the contents of the affidavits
    will be as prescribed by the Department, or by C's
    attorney if the Department has prescribed no form.

Requested Response

Based upon the above facts, [Organization] requests the
Department's advice on the following questions:

1. a. Assume all facts set forth above in the above
   numbered paragraphs, and assume all parties comply
   with the terms and conditions of the listing
   Agreement, with Addendum, will LLC incur a Florida use
   tax liability under Chapter 212 prior to the
   consummation of a sale of the yacht? If so, please
   explain the factual and legal basis for imposing such
   a tax.

b. There is no way for the [Organization] to advise the
Department accurately as to how long any boat sale listing
may last. While the average duration of a listing might be
from 9-12 months, one member reported recently closing a
sale for which she had an active "for sale" listing for
three years. The [Organization] therefore inquires whether
the Department's response to question 1.a. is in any way
time-limited regarding the duration of the listing
agreement and all facts stated in 1.a. remain unchanged.
Asking the question in a different way, assuming all facts
in 1.a. remain unchanged, is there any particular date
when, solely because of the passage of time without a sale
occurring, the owner will be subject to a use tax?

c. Assume all facts set forth above in the above numbered
paragraphs, except to the extent they are superseded by the
following new facts:

i. Instead of residing in Philadelphia, X resides in
Nassau, Bahamas with his wife, Z, an American
citizen.

ii. Instead of X forming the limited liability
company, X and Z form it jointly; both become comanagers and members.

iii. 5 days after her Florida purchases on July 1,
2002, the yacht left for permanent berth in
Nassau, Bahamas. Since that time, it has berthed

in Nassau and has been used for cruising in the
Bahamas and in other Caribbean countries.

iv. All of the references to X are deemed to be
references to X and Z, acting jointly as husband
and wife.

If so, would this change of facts bring about a
different result to the question asked in 1? Please
explain.

d. Assume all facts set forth above in the numbered
paragraphs, except to the extent that paragraph number
6 is modified to reflect that the yacht is returning
to Florida waters in less than six months from the
original date of removal for the purpose of listing
the yacht for sale. Will this change in facts bring
about a different result to the question asked in #1?
If so, please explain.

2. Assume all facts set forth above in the above numbered
   paragraphs; but assume further that the Listing
   Agreement, with Addendum, is terminated without the
   yacht being sold. Will that fact change the answer
   given in response to question # 1 above?

3. In the event the vessel owner violates the conditions
   of the aforementioned addendum to the listing
   agreement and uses the vessel for personal use, does
   this action subject the listing broker/dealer to any
   obligation to collect the use tax from the vessel
   owner or does the listing broker/dealer simply inform
   the vessel owner that such action has resulted in the
   vessel becoming subject to a use tax and that the
   owner should file a Florida use tax return or proceed
   at his own risk?

4. Assume a foreign flagged vessel enters Florida waters
   and meets all the appropriate federal rules that would
   allow the vessel to be offered for retail sale in
   Florida. If the foreign vessels [owners] execute a

central listing agreement and addendum with a Florida
licensed broker, would the foreign flagged vessel be
subject to a use tax liability? If so, please explain
the legal basis for imposing such tax.

Law & Discussion

Section 212.02(20), F.S., states, in part that "[u]se' 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...."As the
Florida Supreme Court observed in Allied Marine Group v.
Department of Revenue, 701 So.2d 630 (Fla. 4th DCA 1997), the
use of a vessel in a fishing tournament to promote only its own
sale would constitute an untaxed "sale at retail of that
property in the regular course of business." In addition, s.
212.02(18), F.S., defines "storage" to mean and include any
keeping or retention in this state of tangible personal property
for use or consumption in this state or for any purpose other
than sale at retail in the regular course of business.

Section 212.02(14)(a), F.S., defines the term "retail sale" or
"sale at retail" to mean "a sale to a consumer or to any person
for any purpose other than for resale in the form of tangible
personal property or services taxable under this chapter, and
includes all such transactions that may be made in lieu of
retail sales or sales at retail...."

In furtherance of the definition in s. 212.02(14)(a), F.S.,
provided above, s. 212.06(2)(b) and (c), F.S., provides:

(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.

(c) The term "dealer" is further defined to mean every
person, as used in this chapter, who sells at retail or who

offers for sale at retail, or who has in his or her
possession for sale at retail; or for use, consumption, or
distribution; or for storage to be used or consumed in this
state, tangible personal property as defined herein,
including a retailer who transacts a mail order sale.

Chapter 212, F.S., extends the taxing powers to dealers engaging
in the business of selling tangible personal property at retail
in Florida, and requires the tax to be collectible from
"dealers" as each item of such property is sold at retail in
Florida. In addition, Chapter 212, F.S., exempts tangible
personal property which a dealer imports into this state for
sale at retail, so long as it is delivered to the care, custody
and control of the dealer.

Therefore, the Department must look to the intent of the
activities occurring with importation of the vessel into
Florida. This is similar to the examination made from the case
HMY New Yacht Sales, Inc. v. Department of Revenue, 676 So.2d
1385, 1389-90 (Fla. 1st DCA 1996), in which the First District,
in dicta, endorsed a reading of the use tax statute which would
tax the promotional use of a vessel in a fishing tournament
unless the use was meant to promote only the vessel being used:

We approve the agency's interpretation of the statutory
definition of "use" with respect to demonstration and
promotional activities, i.e., that such activities related
solely to resale of the vessel do not constitute a taxable
"use," but when such activities are also related to the
sale of other vessels or to general promotion of the
dealer's business or another business, they constitute a
taxable "use" of the vessel.

Utilizing the interpretation of "use" in HMY New Yacht Sales,
Inc. v. Department of Revenue, and based on the facts presented
in this case, it would appear that the activities occurring
relate solely to the importation of the vessel into Florida for
the sole purpose of a sale at retail in this state by Florida
yacht broker, provided the Listing Agreement, with Addendum, is
in effect prior to the importation of the boat into Florida, or
that the period of time from the importation of the boat into

Florida does not extend beyond any time period that may relate
to other exemptions in the rule or statute prior to the Listing
Agreement, with Addendum, becoming effective. Other time
limitations can be found in Rule 12A-1.007(9)(b), F.A.C.

Conclusion

1. With regards to Question 1, no use tax liability is created
   if the yacht is imported into Florida under contract for the
   sole purpose of sale at retail by a Florida yacht broker, since
   the LLC will immediately deliver it to the possession of Y and
   to the care, custody and control of C. This is also conditioned
   upon there being no evidence that X and his family, LLC, A, Z,
   or C or its brokers and sublisted brokers made any personal use
   of the yacht during its presence in Florida; and that C obtains
   from X, LLC, and Z and retains in its business records
   affidavits of X and his family, LLC, and Z, as of the dates of
   commencement and termination of the Listing Agreement, with
   Addendum, confirming that X and his family, LLC, and Z have
   never made nor authorized any personal use of the yacht during
   the entire period of the listing agreement.

As for the presence of the yacht's captain on board during the
period of the Listing Agreement, it would appear that these are
activities related solely to resale of the vessel and do not
constitute a taxable "use." However, when such activities are
not related to the sale of yacht, they will constitute a taxable
"use" of the vessel. This is consistent with the provisions of
s. 212.06(1)(e)1., F.S., and s. 212.07, F.S.

Under the facts, no use tax is imposed upon the LLC in respect
of the yacht's presence in Florida based on the following:

a. Section 212.06(8)(a), F.S., provides in part that: "Use
tax will apply and be due on tangible personal property imported
or caused to imported into this state for use, consumption,
distribution, or storage to be used or consumed in this state;
provided, however, ... 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....

Here, the facts set forth indicate that the boat was used in
another state for 6 months or longer under conditions which
would lawfully give rise to the taxing jurisdiction of the State
of Delaware. Therefore, no use tax liability is created.

The facts in this case disclose that the LLC imported the yacht
into Florida solely for sale at retail, which is not a taxable
use tax event. It is clear that from the time of its arrival in
Florida, the yacht was listed with C and will be placed in its
care, custody and control. C will hold the yacht for sale at
retail in its regular course of business. This is also
conditioned upon there being no evidence that X or his family,
LLC, A, Z, or C or its brokers and sublisted brokers made any
personal use of the yacht during its presence in Florida; and
that C obtains from X, LLC, and Z and retains in its business
records affidavits of X and his family, LLC, and Z as of the
dates of commencement and termination of the Listing Agreement,
with Addendum, confirming that X and his family, LLC, and Z have
never made nor authorized any personal use of the yacht during
the entire period of the listing agreement.

b. The Department would agree that if LLC and C complied
with the elements listed below it would confirm the
nontaxability to the nonresident importer of a boat to Florida
for sale:

i.

a listing agreement, with addendum, was in effect
prior to the importation of the boat into Florida,
or the boat was within the time limitations of
other provisions of the rule or statute at the
commencement of the listing agreement, with
addendum; and

ii.

a copy of the listing agreement, with addendum, is
submitted to the Department's Boat Enforcement
Process; and

iii.

the imported boat is not used for personal purposes
(by or with approval of the owner, LLC, Z, A, or C
or its brokers and sublisted brokers); and

iv.

all activities with respect to boat while in
Florida are related solely to the sale at retail;
and

v.

a special ship's log during the period of the
agreement will be maintained that will document
every occasion on which the boat leaves and returns
to its berth; and

vi.

it is listed for sale through a registered yacht
broker duly licensed as a dealer for sales tax
purposes with the Department; and

vii.

the listing broker has care, custody and control of
the vessel at all times the boat is present in
Florida; and

viii. the registered yacht broker shall notify the
Department of any misuse of the boat while in
Florida that may subject the boat to a use tax
liability.

The Department agrees that the "care, custody, and control"
ruling herein is not intended to limit the nontaxability of the
boat to 90 days (as provided in s. 212.06(12), F.S.), but to
continue indefinitely to shelter the LLC from use tax as long as
the elements listed above do not change. Accordingly, there is
no time limitation on sales at retail.

2. In response to Question 2, LLC's reason for terminating the
   Listing Agreement and its intention at that time with respect to
   the future disposition of the yacht is material. If, for
   example, LLC terminated the agreement because X is dissatisfied
   with the efforts of C and A to sell the yacht, and LLC wishes to
   enter into a new listing agreement with another licensed Florida
   yacht broker, did LLC enter into the second listing agreement
   either simultaneously with or promptly after the termination of
   the first listing agreement? If that was the case, and there are
   no changes in the facts, except the engagement of a new yacht
   broker by LLC, under an identical listing agreement, with
   addendum, then LLC will have continued, without interruption,
   the exercise of a sale at retail and no use tax liability is
   created. Provided X has not used the yacht personally, or taken
   any action in relation to it except action consistent with, and
   in furtherance of its sale. If, on the other had, X, LLC, Z, or

C or its brokers and sublisted brokers has authorized any
personal use of the yacht, use tax will apply.

In addition, if, upon termination of the Listing Agreement
between LLC and C, a second listing agreement in another market
area takes immediate effect or the owner wishes to remove the
yacht from Florida, the facts must establish that all activities
with the exportation of the yacht demonstrate that the yacht was
immediately removed from Florida waters. The facts must also
establish that no conversion and no taxable use occurred in
Florida. For example, immediately after termination of the
listing, LLC takes X and his family, from Nassau, Bahamas, on a
thirty-day trip cruising and fishing in Florida waters, LLC will
be subject to a use tax on the cost price of the yacht, provided
the requirements of s. 212.06(8)(a), F.S., have not been met
prior to the importation of the yacht into Florida.

3. In response to Question 3, the Department recognizes that
   that the vessel owner has executed an agreement with the listing
   broker/dealer to sell the vessel and, unless otherwise exempt,
   the importation of the vessel into Florida under this agreement
   will not create a use tax liability. This agreement
   specifically prohibits the owner's personal use of the vessel
   while the vessel is berthed in Florida under the care, custody,
   and control of the broker/dealer. If, there are actions by the
   vessel owner that occur outside the listing agreement or in
   breach of the listing agreement addendum, which could result in
   a use tax liability on the vessel, the Department would look
   solely to the owner of the boat for payment of the tax
   liability. However, the Department would request that the
   broker/dealer notify the Department. This is consistent with
   the Department's ruling herein whereby the importation of the
   boat into Florida for sale by a broker/dealer is conditioned on
   there being no evidence that any personal use of the yacht be
   made during its presence in Florida while in the care, custody,
   and control of the broker/dealer.

4. In response to Question 4, because the foreign-flagged vessel
   owners have complied with the applicable federal rules and
   regulations that would allow for the vessel to be offered for
   sale in the United States, the vessel would not be subject to a

use tax liability if the vessel is imported for sale by a
licensed Florida yacht broker utilizing the aforementioned
central listing agreement, with addendum. The same rationale is
applied here, that the vessel is being imported into Florida for
the sole purpose of a sale at retail which does not create a use
tax liability. However, time limitations for length of stay
would be controlled by the appropriate federal regulation.

This response constitutes a Technical Assistant Advisement under
Section 213.22, F.S., which is binding on the Department only
under the facts and circumstances described in the requests for
this advice, as specified in Section 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. Ordinarily, confidential
information, such as the identity of the person to whom an
advisement is issued, must be deleted before public disclosure.
In the situation in which a taxpayer association is seeking an
advisement on behalf of its members, having the identity of the
requesting association remain in the published advisement is
useful to those using the advisement for guidance. No specific
taxpayer information is included in an advisement issued to a
taxpayer association, and concerns about protecting proprietary
information are not present under such circumstances. However,
in light of the statutory requirements as to confidentiality, a
taxpayer association must give its consent to the Department to
allow its name to be included in the published advisement. The
taxpayer to whom this advisement is issued has given written
consent to allow the disclosure of its identity.

Sincerely,

Vicki Allen

Tax Law Specialist
Technical Assistance & Dispute Resolution
(850) 922-4846

Control #57031