| On July 1, 2010, the Florida cap on yacht sales and use | | | | yacht). The downside to this registration is: |
| tax went into effect. The maximum amount of tax | | | | The need to export the vessel yearly to re-obtain |
| now collected is $18,000 - which means that yachts | | | | another cruising permit |
| over $300,000 will have no extra tax collected | | | | Expenses to set up and maintain a foreign registry |
| (including county surcharges). Previously, Florida taxed | | | | are not cheap |
| yachts at 6% of the purchase price. When you | | | | Restrictions on sale-ability - thus "not available for |
| consider that a $1,000,000 yacht paid $60,000 in sales | | | | sale to US residents while in US waters" |
| tax alone, this drove many owners to alternative flags | | | | Non-residents can avoid paying the Florida sales and |
| and states to escape paying this tax. | | | | use tax provided that they remove the boat from |
| Florida is regarded as a premium area in which to | | | | Florida waters within a prescribed time period after |
| station a yacht, making this new sales/use tax cap | | | | purchase. If they register in another US jurisdiction and |
| very attractive. Here are reasons why many yacht | | | | keep the boat out of Florida for 6 months; they can |
| owners choose to keep their yachts in this state: | | | | then bring the boat back into Florida without taxation |
| Centrally located for many destinations such as | | | | (although they must register it in Florida after being in |
| the Florida keys, the Bahamas and the Caribbean | | | | state waters for a certain time period). However, if |
| Plenty of private and resort dockage | | | | they wish to sell the boat in Florida - they are |
| Ideal climate for year-round yachting lifestyle | | | | restricted to placing the vessel under the care/custody |
| Home to every yacht support and product | | | | of a broker and may not use the boat. |
| imaginable | | | | By curtailing the relatively high taxation of yachts and |
| A central hub for marketing and sales | | | | capping the amount, Florida has opened the door for |
| Prior to this sales tax cap, many owners of expensive | | | | many yachts to stay in its waters and enjoy not only |
| yachts would avoid paying the 6% sales tax by | | | | year-round cruising opportunities, but allowing for |
| registering the yacht in a foreign country, such as the | | | | long-term usage and unencumbered selling and |
| British Virgin Islands or Cayman Islands - allowing them | | | | chartering. This will encourage many owners to stay in |
| to enter Florida under a cruising permit. This act also | | | | Florida thus stimulating the service businesses which |
| eliminates paying US duty (1.5% of the value of the | | | | the yachts depend on. |