TIP 95A01-28 Date Issued: Sep 28, 1995 EXEMPTION EXTENDED FOR LARGE BOATS SOLD TO NONRESIDENTS
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1 TIP 95A01-28 Date Issued: Sep 28, 1995 EXEMPTION EXTENDED FOR LARGE BOATS SOLD TO NONRESIDENTS Effective October 1, 1995, the existing exemption for sales of boats to nonresidents has been extended to 90 days for boats of 5 net tons of admeasurement or larger (qualified boats). The existing exemption period of 10 or 20 days for smaller boats has not changed. SELLERS' CRITERIA FOR EXTENDED EXEMPTION: 1. The selling dealer must be registered with the Florida Department of Revenue. 2. The qualifying boat must be sold to a nonresident purchaser. 3. The selling dealer is responsible for purchasing special 90-day decals from the Department, validating them, affixing them to the boat, and placing the decal i.d. # on the removal affidavit (sample attached). 4. The removal affidavit must be completed by the nonresident purchaser. The selling dealer must provide that affidavit and a copy of the closing statement and bill of sale to the Department within 5 days of the sale and keep a copy of the removal affidavit for at least 5 years. This is also a requirement of the 10 or 20 day exemption period. HOW TO ORDER THE 90-DAY DECALS: Request an Application for Boat Decals (DR-42A) by calling the Department's Boat Enforcement Unit at Limit your initial order of decal sheets to the number of sales of qualified boats to nonresidents made in the prior year. The decal sheets cost $ There are two decals per sheet, one for each side of the boat. SELLERS' FAILURE TO COMPLY:
2 The Department will pursue collection of the tax, penalty, and interest from the selling dealer if any of the following occur: A. The required documentation is not submitted and maintained. B. The decals are issued falsely, not affixed to the boat, are incorrectly marked for expiration, or are not properly accounted for. A 200 percent penalty applies, in addition to the tax. Further, the dealer may be subject to imprisonment of up to 1 year and a fine of up to $1,000. PURCHASERS' CRITERIA FOR EXTENDED OR NONEXTENDED EXEMPTION: 1. Within 10 days of removal of the boat, the nonresident purchaser must provide the Department proof of removal. This proof includes copies of out-of-state fuel receipts, dockage charges or repair bills. 2. Within 30 days of removal of the boat, the nonresident purchaser must provide the Department written proof that it was licensed, titled, registered, or documented outside Florida. If such proof is not available within 30 days, the purchaser must provide written proof to the Department that he or she has applied for a license, title, registration, or documentation of the boat outside Florida within the 30-day period. A copy of the license, title, registration, or documentation of the boat outside Florida must be provided to the Department when issued. PURCHASERS' FAILURE TO COMPLY: The Department will pursue collection of the tax, penalty, and interest from the nonresident purchaser of a qualified boat if any of the following conditions occur: A. The boat is not removed from Florida by the 90-day decal expiration date. The authorized 90-day period cannot be interrupted or extended for any purpose, including repairs; or B. The required documentation is not provided to the Department within the specified time frames; or C. The boat returns to Florida within 6 months of
3 departure except for repairs, alterations, refitting, or modifications by a registered repair facility. The penalty is an amount equal to the tax and is mandatory; or D. The decal is removed, defaced, changed, modified, or altered in any way that affects its expiration date before it expires. A 200 percent penalty will apply, in addition to the tax. Further, the purchaser may be subject to imprisonment of up to 1 year and a fine of up to $1,000. We provide this information to help you understand the requirements of Florida law and administrative rules. If you have questions or need assistance please call Taxpayer Services, Monday-Friday, 8:00 a.m. to 5:00 p.m., ET, at (in Florida only) or Persons with hearing or speech impairments may call the Department's TDD at Address written inquiries to: Florida Department of Revenue, P.O. Box 7443, Tallahassee, Florida The following is a suggested format for an affidavit to be completed by the purchaser and furnished to the selling dealer. In order to satisfy the requirements for exemption, the affidavit must contain all of this information and be completed in full. AFFIDAVIT FOR EXEMPTION OF BOAT SOLD FOR REMOVAL FROM THE STATE OF FLORIDA BY A NONRESIDENT PURCHASER STATE OF FLORIDA COUNTY OF AFFIDAVIT Personally appears the below named affiant, who being duly sworn, deposes and says: 1. I have read the Florida Department of Revenue Rule 12A-1.007(9), F.A.C., and s , F.S.; and 2. I am not a resident of the State of Florida and do not make my permanent place of abode in Florida at the time of taking delivery of the boat designated below; and
4 3. I am not engaged in Florida in any employment, trade, business, or profession which the designated boat will be used in Florida; and 4. I represent a corporation which has no officer or director who is a resident of, or makes his permanent place of abode in, Florida; and 5. I represent an artificial entity other than a corporation which has no individual vested with authority to participate in the management, direction, or control of the affairs of the entity who is a resident of, or makes his or her permanent place of abode in, Florida; and 6. Within 30 days of the date of departure from Florida of the herein described boat, I agree to furnish the Florida Department of Revenue with written proof that this vessel was licensed, titled, registered or documented outside Florida; and 7. Within 10 days of the date of departure of the herein described vessel, I agree to furnish the Florida Department of Revenue with invoices for fuel, dockage charges, or repairs issued by out-of-state vendors or suppliers or other documentary evidence which specifically identifies this boat, including the Hull I.D. Number; and 8. I claim exemption under s (1)(a)2., F.S., from Florida sales and use tax on the purchase of the boat designated below for the following reason: ( ) Boat herein identified and described is 5 net tons of admeasurement or larger and I plan to have the boat in Florida for a period up to 90 days from the date of purchase. I hereby agree to purchase from the selling dealer at the time of sale a decal issued by the Florida Department of Revenue authorizing the boat to remain in Florida up to 90 days following the date of sale. I further agree to remove the boat from Florida within the 90 day period authorized by the decal and understand that the 90 day period may not be tolled for any reason including repairs. ( ) Boat will be removed by me or by my designated agent from the State of Florida within 10 days of the date of purchase. ( ) Boat is to be repaired or altered and will be removed
5 from the State of Florida by me or by my designated agent within 20 days (excluding tolled days) after completion of the repairs or alterations consistent with s , F.S. PLEASE TYPE OR PRINT THE FOLLOWING INFORMATION: Name of Purchaser If Purchaser is a Corporation or Partnership, List Corporate Officers or Partners Purchaser's Permanent Address (Street) (City) (State/Country) (ZIP) Purchaser's Daytime Telephone Number ( ) Purchaser's Driver's License # and State Purchaser's Passport or Visa # Name of Selling Dealer Address of Selling Dealer (Street) (City) (State) (ZIP) Selling Dealer's Florida Sales and Use Tax Registration Number Dealer's Telephone Number ( ) Date of Sale (Month) (Day) (Year) DESCRIPTION OF BOAT Make Model Year Hull No. ( ) New ( ) Used Name of Vessel (New) (Ex) State/Country Registration and/or Coast Guard Documentation Number Sales Price Trade-In Allowance Net Amount Paid Ninety Day Decal#, if applicable (Affix Here):. Primary location of the vessel prior to removal Under the penalties of perjury, I declare that I have read the foregoing, and the facts alleged are true to the best of my knowledge and belief. I understand that if I fail to comply with the requirements of this affidavit I will be liable for
6 payment of the tax and a mandatory penalty equal to the tax. I further understand that if I purchase a decal and remove or alter it or cause or allow another person to do the same, then I will be subject to payment of the tax plus a 200 percent penalty. I further understand that I may be subject to imprisonment of up to 1 year and a fine of up to $ (Signature of Purchaser) Sworn to and subscribed before me this day of, 19. Notary Public, State of Florida My commission expires: NOTARY SEAL Personally known [ ] Produced Identification [ ] Type: Original to be submitted to the Florida Department of Revenue, Central Compliance and Enforcement, Boat Enforcement Unit, P.O. Box 6417, Tallahassee, Florida st copy to be retained by the dealer and made part of the dealer's records 2nd copy: Purchaser's copy
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