Would Florida use tax apply when an out-of-state-purchased yacht entered Florida after more than six months of use in other states?

Plain-English summary

A two-member LLC purchased a federally documented yacht outside Florida, with the sale and transfer of title occurring outside the state. Except for possible transitory travel connected with the Bahamas or placement at a Florida repair yard under the stated safe-harbor facts, the yacht would be used in other U.S. states for more than six months before later Florida use or storage. No saltwater fishing license fee would be required for the yacht.

Florida concluded that neither sales tax on the purchase nor use tax on the later Florida entry would be due on the stated facts. The key use-tax rule created a rebuttable presumption that property used in another state for at least six months before importation was not purchased for Florida use.

The taxpayer had to be able to document qualifying out-of-state use and payment of any applicable like tax. The Department also warned that it could overcome the presumption if the evidence showed that the taxpayer or its members intended to bring, use, or store the yacht in Florida.

What this means for you

The six-month period was not a stand-alone automatic exemption. The ruling depended on an out-of-state purchase and title transfer, qualifying use under another state's taxing jurisdiction, supporting records, the stated fishing-license fact, and no intent to purchase the yacht for Florida use.

Common questions

Was Florida sales tax due on the yacht's purchase? No. The purchase and transfer of title occurred outside Florida's taxing jurisdiction.

Was Florida use tax due when the yacht later entered Florida? No, assuming the stated facts, more than six months of qualifying use in other U.S. states, and no purchase for Florida use.

What proof did the ruling require? It called for documentation sufficient to substantiate the out-of-state use and payment of any applicable like tax to another state.

Could Florida still impose use tax after six months? Yes. The six-month rule creates a rebuttable presumption. The ruling says evidence of an intent to bring, use, or store the yacht in Florida could overcome it.

Did the fishing-license exception apply? No on the stated facts, because the ruling says no saltwater fishing license fee would be required directly or indirectly for the yacht.

Citations and references

• Fla. Stat. § 212.05 (use or storage of tangible personal property in Florida)
• Fla. Stat. § 212.06(1), (2), (4), (6)-(8) (imported property, credits, and the six-month presumption)
• Fla. Stat. § 90.301 (rebuttable presumptions)
• Fla. Admin. Code r. 12A-1.007(2)(a) (documentation for vehicles and boats purchased outside Florida)
• Fla. Admin. Code r. 12A-1.091(2)(a) (out-of-state-use presumption)
• Fla. Stat. § 213.22 (Technical Assistance Advisements)

Source

• Landing page: Florida Tax Law Library
• Advisement: TAA 07A-014

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: 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.

May 21, 2007

Re:

Technical Assistance Advisement 07A-014
Sales and Use Tax
XXX (“Taxpayer”)
Taxpayer Identification Number XX
Taxpayer’s Address: XX
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.”)

Dear :
This is in response to your correspondence to the Department, dated January 31, 2007,
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
Will a federally documented yacht purchased outside Florida be subject to Florida sale or
use tax if allowed to enter into Florida waters when it is used in other U. S. States for six
months or longer prior to bringing, using, or storing the yacht in Florida thereafter.
FACTS
Your letter provides the following statements of fact:
1.

Taxpayer is a XXX limited liability company comprised of two members.

2.

Taxpayer purchased XX (the “Yacht”).

3.

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

4.

The Yacht is federally documented with the United States Coast Guard in
the ownership of the Taxpayer. No state registration of the Yacht is
contemplated at this time.

5.

Excepting possible transitory presence of the Yacht (for travel to the
Bahamas) or placement of the Yacht at a Florida yard under safe harbor,
the Yacht will be used in other U.S. states for a period in excess of six
months before use in Florida.

6.

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 January 31, 2007, provides the following position:
. . . Our review of the Florida law (as set forth above) supports the proposition
that, if the Yacht is in fact used in other U.S. states for six months or longer, the
Yacht will not 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., 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 05A-048, dated
November 18, 2005, TAA 04A-007, dated February 2, 2005, TAA 03A-051, dated
October 28, 2003, and TAA 01A-033, dated June 18, 2001.
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
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.)
(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. . . .
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
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 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 January 31, 2007, indicate that the purchase of
the Yacht will occur outside Florida. Additionally, the facts provided in your request of
January 31, 2007, indicate that the Yacht will be federally documented with the United
States Coast Guard, and that, with the exception of transient presence on voyages to and
from the Bahamas or for placement in a registered repair facility for repairs consistent
with Paragraph 212.08(7)(t), F.S., use of the Yacht will occur outside 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.
The presumption contained in Section 212.06(8)(a), F.S., is an assumption of fact, that,
based upon a preponderance of evidence, may be overcome. See, Section 90.301, 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 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 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 payment of any
applicable like tax to another state, 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.
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 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.: 28584