Taxes on Superyacht Sales in Florida

Over the past years we have acted for Buyers and Sellers on a number of high value superyacht sales in Florida.  In this process we have established a network of surveyors, documentation agents and local contacts to assist in each aspect of these transactions.  This includes liaison with flag state representatives and surveyors.

Typically, similar tax and duty issues arise on each sale and these include a consideration of (amongst other things) the following:

• The Broker’s listing agreement - to establish whether the vessel is held in the care and custody of the broker, and that the broker is a registered broker in Florida.  This would include a consideration of whether the vessel is offered for sale to non-US residents only.

• Florida Sales Tax (limited to US$18,000) and Customs Duty (1.5%) - generally these are the responsibility of the Buyer given that the Seller has no control over the Buyer’s planned use of the vessel.  These imposts may apply to a sale if the Buyer has not removed the vessel within 10 days of the date of the purchase or within 90 days after the purchase of a Florida “decal”.

• Tenders - all tenders (less than 5 net tons) incur a sales tax if the vessel is not removed within the 10-day period.

• Removal - the Buyer must deliver to the selling dealer an affidavit of removal. Further, the Buyer must prove to the Florida Department of Revenue within 30 days of departure that the vessel is registered elsewhere.

These taxes can be avoided by proper transaction planning.  For more information please contact Peter Dawson by email peter@maritimelaw.co.nz, or by phone +64 27 229 9624.