Florida Regulations 12A-1.0641: Sales of Vessels Used in Interstate or Foreign Commerce or for Commercial Fishing Purposes
Current as of: 2024 | Check for updates
|
Other versions
(1) Scope. This rule is intended to provide guidelines for the partial exemption for vessels and vessel parts provided in Florida Statutes § 212.08(8), to persons who transport persons or property for hire in interstate or foreign commerce or who operate commercial fishing vessels.
(2) Vessels.
(a) Vessels that are used to transport persons or property for hire in interstate or foreign commerce and commercial fishing vessels are subject to the partial exemption provided in Florida Statutes § 212.08(8) Tax imposed is based on the ratio of Florida mileage to total mileage traveled by the carrier’s vessels that were used in interstate or foreign commerce or for commercial fishing purposes and that had at least some Florida mileage during the previous fiscal year of the carrier.
(b) The mileage of vessels from the territorial limit to port dockside and return into international waters, foreign or coastwise, in the continuous movement of persons or property in interstate or foreign commerce is not considered to be mileage in Florida.
(c) “”Commercial fishing vessels”” include vessels designed, constructed, and used exclusively for the taking of fish, crayfish, oysters, shrimp, and sponges from the salt and fresh waters for sale. Vessels used for sports or pleasure fishing, such as pleasure fishing boats, charter boats, or party boats, are not commercial fishing vessels.
(d) Vessels used in intrastate commerce exclusively within the territorial waters of Florida do not qualify for the partial exemption.
(e) Vessels that are not operated to transport persons or property for hire in interstate or foreign commerce, even though such vessels may move persons or property across the Florida state line, do not qualify for the partial exemption. For example, a dredge is operated by a company to transport its workmen and equipment between two states. The dredge is not operated to transport persons or property for hire in interstate or foreign commerce, because the company is not receiving compensation for transporting its own workmen. The purchase of the dredge does not qualify for the partial exemption.
(f) Vessels that are not engaged in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes are subject to tax, as provided in Florida Statutes § 212.05
(3) Computation of mileage apportionment factor and tax due.
(a) Vessel owners are required, at the end of each fiscal year of operation, to determine the ratio of Florida mileage to total mileage traveled by the owner’s vessels operated to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes that had at least some Florida mileage during the fiscal year. The ratio computed is the owner’s mileage apportionment factor to be applied to purchases, leases, and rentals of vessels, and parts thereof, subject to the partial exemption under Florida Statutes § 212.08(8), during the following fiscal year.
(b) Vessel owners are required to apply their mileage apportionment factor calculated at the end of the prior fiscal year to purchases and leases of vessels, and parts thereof, that will be operated exclusively to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes during the current fiscal year. Vessel owners are required to calculate and report tax to the Department on a monthly basis.
(c) During the owner’s initial year of operation in Florida, the owner’s mileage apportionment factor may be determined on the basis of the ratio of anticipated Florida mileage to anticipated total mileage for that year for the owner’s vessels used to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes that are anticipated to have at least some Florida mileage. At the end of the initial year of operation, the owner is required to determine the mileage apportionment factor based on the actual Florida mileage and the actual total mileage for the initial year of operation. The owner is required to pay any additional tax due based on the actual mileage ratio. The tax is due with the owner’s return due for the first month of the owner’s second year of operation in this state. The owner may take a credit or apply to the Department for a refund of tax paid, as provided in Fl. Admin. Code R. 12A-1.014, when the tax paid based on the estimated mileage ratio exceeds the tax due based on the actual mileage ratio for the initial year of operation.
(4) Claiming the exemption at the time of purchase of a vessel.
(a) To claim the exemption at the time of purchase of a vessel that will be used exclusively in non-Florida waters to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes, the vessel owner, or the owner’s agent or representative purchasing the vessel, is required to issue an affidavit to the selling dealer. The purchaser executing the affidavit must affirm that the vessel is for the exclusive use designated in Florida Statutes § 212.08(8), the vessel will be used exclusively in non-Florida waters, and the vessel will not be used for sport or pleasure fishing purposes. Purchasers who purchase vessels solely for this purpose require no registration with the Department. A suggested format of an affidavit is provided in paragraph (d).
(b)1. To claim the partial exemption at the time of purchase, the person purchasing a vessel used in interstate or foreign commerce in both Florida and non-Florida waters or purchasing a commercial fishing vessel is required to:
a. Hold a valid sales and use tax certificate of registration;
b. Hold a valid Sales and Use Tax Direct Pay Permit issued by the Department. To obtain a direct pay permit, the purchaser of the vessel is required to file an Application for Self-Accrual Authority/Direct Pay Permit (Form DR-16A) with the Department, as provided in Fl. Admin. Code R. 12A-1.0911; and,
c. Execute an affidavit to the selling dealer affirming that the vessel is for the exclusive use designated in Florida Statutes § 212.08(8), the vessel will not be used for sport or pleasure fishing purposes, and the basis of the tax due on the purchase of the vessel. A suggested affidavit is provided in paragraph (d).
(c) Any owner who executes an affidavit to purchase a vessel used in both Florida and non-Florida waters for use in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes is required to remit the tax based on the owner’s mileage apportionment factor to the Department. The owner is required to remit such tax when the owner’s agent or representative has executed an affidavit.
(d) The following is a suggested format of an affidavit to be executed at the time of purchase by the owner or the owner’s agent or representative to the dealer selling or leasing the vessel:
AFFIDAVIT
VESSELS USED TO TRANSPORT PERSONS OR PROPERTY
FOR HIRE IN INTERSTATE OR FOREIGN COMMERCE
OR FOR COMMERCIAL FISHING PURPOSES
I, the undersigned individual, hereby declare that I am the purchaser or the purchaser’s agent or representative authorized to act for the purchaser in the purchase of the vessel described below. The option checked below applies to this purchase:
( ) The vessel will be used exclusively to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in non-Florida waters, including the mileage from the territorial limit to port dockside and return into international waters. The vessel will not operate in or on the canals or waterways, or within the territorial waters, of Florida and is not subject to Florida sales tax.
( ) The vessel will be used in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in both non-Florida waters and in Florida territorial waters. The purchaser holds a valid Sales and Use Tax Direct Pay Permit issued by the Florida Department of Revenue and must pay tax imposed under Florida Statutes § 212.08(8), at the rate of ___% of the sales price of the vessel directly to the Florida Department of Revenue. The tax is due on the 1st day of the month following the date of purchase of the designated vessel and is delinquent on the 21st day of that month.
DESCRIPTION OF VESSEL: _________________________________________________________________________________
NAME OF VESSEL: ________________________________________________________________________________________
STATE REGISTRATION NUMBER: ___________________________________________________________________________
COAST GUARD DOCUMENTATION NUMBER: ________________________________________________________________
MAKE: __________________________________
Terms Used In Florida Regulations 12A-1.0641
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
(a) Vessels that are used to transport persons or property for hire in interstate or foreign commerce and commercial fishing vessels are subject to the partial exemption provided in Florida Statutes § 212.08(8) Tax imposed is based on the ratio of Florida mileage to total mileage traveled by the carrier’s vessels that were used in interstate or foreign commerce or for commercial fishing purposes and that had at least some Florida mileage during the previous fiscal year of the carrier.
(b) The mileage of vessels from the territorial limit to port dockside and return into international waters, foreign or coastwise, in the continuous movement of persons or property in interstate or foreign commerce is not considered to be mileage in Florida.
(c) “”Commercial fishing vessels”” include vessels designed, constructed, and used exclusively for the taking of fish, crayfish, oysters, shrimp, and sponges from the salt and fresh waters for sale. Vessels used for sports or pleasure fishing, such as pleasure fishing boats, charter boats, or party boats, are not commercial fishing vessels.
(d) Vessels used in intrastate commerce exclusively within the territorial waters of Florida do not qualify for the partial exemption.
(e) Vessels that are not operated to transport persons or property for hire in interstate or foreign commerce, even though such vessels may move persons or property across the Florida state line, do not qualify for the partial exemption. For example, a dredge is operated by a company to transport its workmen and equipment between two states. The dredge is not operated to transport persons or property for hire in interstate or foreign commerce, because the company is not receiving compensation for transporting its own workmen. The purchase of the dredge does not qualify for the partial exemption.
(f) Vessels that are not engaged in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes are subject to tax, as provided in Florida Statutes § 212.05
(3) Computation of mileage apportionment factor and tax due.
(a) Vessel owners are required, at the end of each fiscal year of operation, to determine the ratio of Florida mileage to total mileage traveled by the owner’s vessels operated to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes that had at least some Florida mileage during the fiscal year. The ratio computed is the owner’s mileage apportionment factor to be applied to purchases, leases, and rentals of vessels, and parts thereof, subject to the partial exemption under Florida Statutes § 212.08(8), during the following fiscal year.
(b) Vessel owners are required to apply their mileage apportionment factor calculated at the end of the prior fiscal year to purchases and leases of vessels, and parts thereof, that will be operated exclusively to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes during the current fiscal year. Vessel owners are required to calculate and report tax to the Department on a monthly basis.
(c) During the owner’s initial year of operation in Florida, the owner’s mileage apportionment factor may be determined on the basis of the ratio of anticipated Florida mileage to anticipated total mileage for that year for the owner’s vessels used to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes that are anticipated to have at least some Florida mileage. At the end of the initial year of operation, the owner is required to determine the mileage apportionment factor based on the actual Florida mileage and the actual total mileage for the initial year of operation. The owner is required to pay any additional tax due based on the actual mileage ratio. The tax is due with the owner’s return due for the first month of the owner’s second year of operation in this state. The owner may take a credit or apply to the Department for a refund of tax paid, as provided in Fl. Admin. Code R. 12A-1.014, when the tax paid based on the estimated mileage ratio exceeds the tax due based on the actual mileage ratio for the initial year of operation.
(4) Claiming the exemption at the time of purchase of a vessel.
(a) To claim the exemption at the time of purchase of a vessel that will be used exclusively in non-Florida waters to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes, the vessel owner, or the owner’s agent or representative purchasing the vessel, is required to issue an affidavit to the selling dealer. The purchaser executing the affidavit must affirm that the vessel is for the exclusive use designated in Florida Statutes § 212.08(8), the vessel will be used exclusively in non-Florida waters, and the vessel will not be used for sport or pleasure fishing purposes. Purchasers who purchase vessels solely for this purpose require no registration with the Department. A suggested format of an affidavit is provided in paragraph (d).
(b)1. To claim the partial exemption at the time of purchase, the person purchasing a vessel used in interstate or foreign commerce in both Florida and non-Florida waters or purchasing a commercial fishing vessel is required to:
a. Hold a valid sales and use tax certificate of registration;
b. Hold a valid Sales and Use Tax Direct Pay Permit issued by the Department. To obtain a direct pay permit, the purchaser of the vessel is required to file an Application for Self-Accrual Authority/Direct Pay Permit (Form DR-16A) with the Department, as provided in Fl. Admin. Code R. 12A-1.0911; and,
c. Execute an affidavit to the selling dealer affirming that the vessel is for the exclusive use designated in Florida Statutes § 212.08(8), the vessel will not be used for sport or pleasure fishing purposes, and the basis of the tax due on the purchase of the vessel. A suggested affidavit is provided in paragraph (d).
(c) Any owner who executes an affidavit to purchase a vessel used in both Florida and non-Florida waters for use in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes is required to remit the tax based on the owner’s mileage apportionment factor to the Department. The owner is required to remit such tax when the owner’s agent or representative has executed an affidavit.
(d) The following is a suggested format of an affidavit to be executed at the time of purchase by the owner or the owner’s agent or representative to the dealer selling or leasing the vessel:
AFFIDAVIT
VESSELS USED TO TRANSPORT PERSONS OR PROPERTY
FOR HIRE IN INTERSTATE OR FOREIGN COMMERCE
OR FOR COMMERCIAL FISHING PURPOSES
I, the undersigned individual, hereby declare that I am the purchaser or the purchaser’s agent or representative authorized to act for the purchaser in the purchase of the vessel described below. The option checked below applies to this purchase:
( ) The vessel will be used exclusively to transport persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in non-Florida waters, including the mileage from the territorial limit to port dockside and return into international waters. The vessel will not operate in or on the canals or waterways, or within the territorial waters, of Florida and is not subject to Florida sales tax.
( ) The vessel will be used in transporting persons or property for hire in interstate or foreign commerce or for commercial fishing purposes in both non-Florida waters and in Florida territorial waters. The purchaser holds a valid Sales and Use Tax Direct Pay Permit issued by the Florida Department of Revenue and must pay tax imposed under Florida Statutes § 212.08(8), at the rate of ___% of the sales price of the vessel directly to the Florida Department of Revenue. The tax is due on the 1st day of the month following the date of purchase of the designated vessel and is delinquent on the 21st day of that month.
DESCRIPTION OF VESSEL: _________________________________________________________________________________
NAME OF VESSEL: ________________________________________________________________________________________
STATE REGISTRATION NUMBER: ___________________________________________________________________________
COAST GUARD DOCUMENTATION NUMBER: ________________________________________________________________
MAKE: __________________________________