Florida imposes a 6% state sales tax on boat sales, plus any applicable county discretionary sales surtax. The surtax varies by county and typically ranges from 0.5% to 1.5%. Palm Beach County adds 1%, so total tax on a boat sold there runs 7%.

The most important rule for marine dealers to understand is the $18,000 cap. Florida caps the state sales tax on vessels at $18,000, which means the 6% state portion maxes out on boats priced at $300,000. County surtax also caps, though at different thresholds depending on the county. This cap makes Florida attractive for high-value boat purchases and brings buyers from other states specifically to purchase here.

Trade-ins reduce the taxable amount. If a customer trades in a boat worth $50,000 toward a $200,000 purchase, you collect tax on $150,000. The trade-in must be of like kind, meaning a boat traded for a boat. Document the trade-in value clearly on the sales invoice.

Out-of-state buyers can claim exemption from Florida sales tax if they’re taking the vessel out of state. The buyer must sign a Florida Sales and Use Tax Return for Out-of-State Vessels and provide documentation of their out-of-state address. They have 90 days to remove the boat from Florida or 180 days if they’re conducting a manufacturer-authorized sea trial or repairs. If the vessel stays in Florida beyond the allowed period, tax becomes due.

Commercial fishing vessels qualify for exemption when used exclusively for commercial fishing operations. The buyer needs a valid commercial fishing license and must certify the vessel’s commercial use. Partial commercial use doesn’t qualify for full exemption.

As a dealer, you’re responsible for collecting the correct amount of tax at the point of sale, including both state and local portions. You need a Florida sales tax certificate and must display it at your place of business. Filing frequency depends on your tax liability. Dealers collecting more than $1,000 per month typically file monthly, while smaller operations may file quarterly.

Keep exemption certificates and documentation for at least seven years. Florida auditors will ask for proof when customers claimed exemptions. If you can’t produce the documentation, you owe the tax the customer should have paid, plus penalties and interest.

For marine and boating businesses with significant sales volume, proper sales tax management becomes a substantial compliance obligation. Mistakes compound quickly when individual transactions involve $10,000 or more in tax. Working with a Boca Raton fractional CFO who understands marine industry transactions can help you build processes that keep you compliant without slowing down sales.

Registration and title processing add another layer. When you sell a vessel, the buyer must register it with the Florida Fish and Wildlife Conservation Commission within 30 days. Dealers often handle this paperwork as part of the sale. The registration fees are separate from sales tax and vary based on vessel length.