Benefits of registering yachts in Florida – $18k tax cap
Regardless of if you own a quality center console boat like an Intrepid
or if you own a superyacht and do pleasure cruising, there are many owners who like to fly an American flag from the stern of their yachts. Yet for years owners have been registering their vessels in foreign countries in order to get the benefits offered by that country which many times included tax advantages. However, now in Florida there is sales tax cap that allows owners to benefit from US registration at an affordable price.
Since July 2010, the Florida Maritime Full Employment Act has been in effect. One of the results of this law is an $18,000 sales tax cap on a yacht purchased in the state of Florida. At the regular 6% tax rate, this means that there is no additional tax on yachts sold over $300,000. Before this law, many larger yachts were flagged in foreign countries and no tax was paid in the US. Now we are seeing many owners register their boats in Florida to avoid the foreign flag issues such as cruising permits and Florida is now getting more revenue than before. There are some reports that since implementing this law Florida has increased tax collection by 300 per cent and we certainly saw a wave of enthusiasm from buyers since.
Before making any significant tax decisions you should consult your maritime attorney or tax accountant.
For over 53 years Atlantic Yacht & Ship has been serving the yachting community. Our headquarter sales office is dockside at Harbour Towne Marina in the heart of the yachting capital of the world, Fort Lauderdale, FL. We are official distributors of Sunseeker yachts
and our in house waterside service department
provides official Sunseeker warranty work along with general yacht services. Whether purchasing or marketing a quality vessel, Atlantic Yacht and Ship, Inc. is your one stop resource for the highest quality service and sales in the yachting industry today.
If you are looking at yachts for sale
, or thinking about selling your yacht
, it is always wise to have an experienced broker representing your interests throughout the deal. Contact Atlantic Yacht & Ship
at 954.921.1500 or click here