Florida Caps Yacht Tax at $300k...

We were talking about this earlier this morning locally. As I understand it, it's not *perfect* but it is certainly a step in the right direction. And very good step at that.

States (particularly Fl., and in effect the US Government) really need to look at the larger picture, and yachting globally and make it a much more yacht friendly state [and subsequently, Country] and process as a whole. Applying not only to large but small boats as well. (Yachts, Mega Yachts, Super Yachts, call them what you will)

I agree, this is great legislation, I'd just like to see more of it, covering a larger spectrum of boat building, buying, owning, flagging, etc. And Florida is no better place to start.

$18,000 sales tax cap now law in Florida

The Florida Maritime Full Employment Act has now been signed into law and will become effective July 1, 2010. This law caps sales tax on a yacht purchased in Florida at $18,000. At the 6% rate there is now no addtional tax on boats sold over $300,000.
Since many of the yachts sold here were flagged in foreign countries and no tax was paid in the US, it is expected that many buyers will register their boats in Flodrida to avoid the foreign flag issues such as cruising permits, and Florida will actually get more tax revenue than before. Another advantage for a buyer is that they will no longer have to leave Florida after 90 days or 180 days, which was a requirement previously for non resident purchasers. This should keep more boats in Florida, and that will mean more boats and yachts getting work done at Florida boat yards, and more American crew.

This will undoubtedly cause every state on the east coast to re-examine their tax structure. Should be good for the maritime industry on the entire east coast eventually.

Some places on the east coast are already exteremely good. I had an owner from SC buy a $325k yacht and his sales tax was something like $350.

But this is Very very good for US crew. Why? Because a US documented vessel must employ US crew only, with the exception of a temporary crew member if out of the country, but the entire crew even if the vessel is out of the country must be at least 75% US. It will also be good for the yards and so forth and the entire industry here in South Florida.

Hell YES!!!!! FANTASTIC! I'm in the process of buying a larger yacht ($3mm+) and was holding off waiting for this to pass. Great news! F.U. to the BVI people that I had to deal with on my last two yachts!!!!

Shazam, I am really glad that you posted with info that you now want to flag in the US rather than the BVI's. I wrote to different state legislators to urge them to support this bill, telling them the state will get more revenue overall with a lower tax as more owners register in Florida.
The Bahamas will not like this because boat owners that register here will no longer have to go out of the US for two weeks to get a new cruising permit.
Brokers like myself will like that with US flagged boats, we will not have to mark our ads with "not for sale to US residents while in US waters" and more buyers will look at those boats for sale.

That's fantastic news...it would be nice if California followed this wise example eventually. I hope it's a big boon to the whole industry down there in FL. In CA, we also have to pay property taxes. Even so, I know many boat owners would be much more willing to pay sales tax if it were something reasonable like this.

This is outstanding news.

The People's Republic of Kalifornia has no option but not follow. I don't see it a matter of if, but more a decision of when. With as broke as the state is, it's a no brainer from a fiscal standpoint. I don't know how happy marina owners in Mexico will be. This is a similar scenario as Fl. is to the BVI.

In every way as noted above this makes great sense, and is very good news for the yachting industry as a whole, and then within each 'micro-economy' within the industry from sales, manufacturing, crews, service yards, and so on.