Judy at JWY
Senior Member
- Joined
- Oct 8, 2007
- Messages
- 215
I am starting a new thread on the issues of sales tax related to private sales. This is an important issue with significant consequences so I wanted it to stand out on its own.
I just spoke with my contact person at FDR, a long-time administrator with the Florida Department of Revenue, to confirm that my information posted in the other thread is correct. He spelled it out very clearly:
A private sale is considered an occasional sale or an isolated sale, meaning that it is not through a dealer. The very first paragraph of the Florida statue spells out that if an occasional or isolated sale is concluded in the State of Florida, meaning the new owner takes possession in Fl., then the appropriate sales tax is due (minimum of 6%, with additional taxes possible per county.)
The purchaser is required to and responsible for immediate payment of the sales tax.
In spite of my being a law-abiding citizen and a patriotic American, I couldn't help but ask: "How will the State know?" His response was a chuckle followed up by saying they have a number of ways. For one, he said that states share information. The implication is that when one goes to register in another state, if it is learned that the boat was sold in Florida, then that state rats the new owner out. He also told me they have numerous sources that also report. (I surmise that bridge tenders might be one source.)
If you have questions or need clarification, please call the Florida Department of Revenue. I did not ask the consequences, penalties, or fines that might be associated with the non-payment of sales tax in a private purchase.
I just spoke with my contact person at FDR, a long-time administrator with the Florida Department of Revenue, to confirm that my information posted in the other thread is correct. He spelled it out very clearly:
A private sale is considered an occasional sale or an isolated sale, meaning that it is not through a dealer. The very first paragraph of the Florida statue spells out that if an occasional or isolated sale is concluded in the State of Florida, meaning the new owner takes possession in Fl., then the appropriate sales tax is due (minimum of 6%, with additional taxes possible per county.)
The purchaser is required to and responsible for immediate payment of the sales tax.
In spite of my being a law-abiding citizen and a patriotic American, I couldn't help but ask: "How will the State know?" His response was a chuckle followed up by saying they have a number of ways. For one, he said that states share information. The implication is that when one goes to register in another state, if it is learned that the boat was sold in Florida, then that state rats the new owner out. He also told me they have numerous sources that also report. (I surmise that bridge tenders might be one source.)
If you have questions or need clarification, please call the Florida Department of Revenue. I did not ask the consequences, penalties, or fines that might be associated with the non-payment of sales tax in a private purchase.