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Any downside to becoming a Florida resident?

MIDNJAC

is clara ship
pilot
In general I'd agree, but this is a specific FL exemption. Saved me a few thousand and is 100% legal. Details in the link I posted.

Yeah, I've bought several cars "out of state" as an OR resident (another no-sales tax state). All you have to do is submit paperwork to the dealership/seller telling them so, and they will waive the tax. At least that is how I remember it working……it's been a few years now. IIRC a current LES and home state drivers license scan was all they needed. I also remember hearing that FL vehicle registration is comparable to how cheap it is in OR ($75/vehicle every 2 years there). Probably one of the better options for service members who didn't happen to originate from a cheap state.
 
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insanebikerboy

Internet killed the television star
pilot
None
Contributor
In general I'd agree, but this is a specific FL exemption. Saved me a few thousand and is 100% legal. Details in the link I posted.

Again, not quite.

Quoted directly from the Florida sales tax form,

I recognize that I owe tax to the state in which the motor vehicle was purchased, unless a specific exemption applies.

I do not intend to avoid sales or use tax in any state by registering the vehicle/vessel in Florida

There are a few other specifics as well, which you can read entirely here https://www.flhsmv.gov/dmv/forms/BTR/Milpak/certificateforsalestaxexemption.pdf


So, unless some other state gives an exemption on sales tax to military, you must pay that state sales tax.

In other words, I can't buy a car in California and tell the dealer that I'm military and a Florida resident to avoid paying California sales tax, and then turn around and file with Florida a sales tax exemption form when I title/register the vehicle in Florida.

Bottom line, unless some state grants you exemption, you will pay sales tax. If you don't, 99% of the time it's considered fraud.
 

SynixMan

Mobilizer Extraordinaire
pilot
Contributor

I think we're talking past each other here. If I was imprecise with my earlier statement about it being some kind of blanket sales tax exemption for FL military residents, mea culpa.

In general, I'd agree with you, lying to your dealer to not have them collect taxes at the time of sale and no intention of paying them is fraud. However, Uncle Sam isn't dumb, and tax for a vehicle is generally paid when registering, which 99% of the time is in the place where it's sold. In this case, if you meet the requirements outlined in that document, sales taxes are specifically exempted when registering in FL. Tell your dealer you're registering in FL and will submit the paperwork yourself. You submit the packet with fees for title/registration and they mail you a plate.

I agree it sounds too good to be true, but I've done it personally and known others who have. I even spent time on the phone with people in the Escambia County tax collectors office to verify this was legitimate, since I too believe it was too good to be true. It was talked about on here years ago as well.
 

CommodoreMid

Whateva! I do what I want!
None
Super Moderator
Contributor
Also if you buy a house in Florida and are getting a homestead exemption while you're living there and you PCS and rent out the place, you can keep the exemption.
 

insanebikerboy

Internet killed the television star
pilot
None
Contributor
I think we're talking past each other here. If I was imprecise with my earlier statement about it being some kind of blanket sales tax exemption for FL military residents, mea culpa.

In general, I'd agree with you, lying to your dealer to not have them collect taxes at the time of sale and no intention of paying them is fraud. However, Uncle Sam isn't dumb, and tax for a vehicle is generally paid when registering, which 99% of the time is in the place where it's sold. In this case, if you meet the requirements outlined in that document, sales taxes are specifically exempted when registering in FL. Tell your dealer you're registering in FL and will submit the paperwork yourself. You submit the packet with fees for title/registration and they mail you a plate.

I agree it sounds too good to be true, but I've done it personally and known others who have. I even spent time on the phone with people in the Escambia County tax collectors office to verify this was legitimate, since I too believe it was too good to be true. It was talked about on here years ago as well.


Ok, I think I see the disconnect here.

Example #1) I buy a car in California, I pay sales tax in California. I owe Florida zero tax.

Example #2) I buy a car in a state that doesn't collect sales tax (I think Oregon is an example). I owe Florida zero tax.

Example #3) I buy a car in California and convince the dealership I don't have to pay California sales tax. I owe Florida sales tax.

Example #4) I buy a car in a private sale (not a dealer). You technically don't owe Florida sales tax.


I've discussed this with Clay County, FL tax collector and those are the options. #3 is a point of contention because if I don't pay California tax, I can still get away with not paying tax to Florida. Probably won't ever get caught because they really aren't likely to check, but per the rules if #3 happens you do still owe Florida tax.

For SA of all reading here as well, I bought a new car a few years ago here in California and I tried to avoid titling and registering it in California so I didn't in essence have to double pay for titling fees (initial in California, then again to retitle in Florida). Per California law, if you do that you will get a temp tag on the vehicle and it has to be removed from the state within 24 hours or not driven until titled properly in Florida. If it is driven in California in this scenario and you get pulled over you can get your car impounded.
 

Gatordev

Well-Known Member
pilot
Site Admin
Contributor
Also if you buy a house in Florida and are getting a homestead exemption while you're living there and you PCS and rent out the place, you can keep the exemption.

Do you have a reference for that? If you're not an active resident at that address, then legally speaking, you can't claim the exemption. I'm not arguing what you can do, just the legal side. I wasn't aware PCS'ing changed that.
 

DanMa1156

Is it baseball season yet?
pilot
Contributor
Do you have a reference for that? If you're not an active resident at that address, then legally speaking, you can't claim the exemption. I'm not arguing what you can do, just the legal side. I wasn't aware PCS'ing changed that.

"When a person serving in the Armed Forces owns and uses property as a homestead, the servicemember may rent the homestead property without abandoning the claim to the homestead exemption (section 196.061, Florida Statutes)."

http://floridarevenue.com/dor/property/brochures/pt109.pdf

"Active-duty military members may retain their homestead exemption when stationed out of the area on official PCS orders. In order to qualify, applicants must provide a copy of their orders PRIOR to moving, currently receiving Homestead Exemption, maintain Florida residency, maintain a valid Florida driver license, and respond annually to the application that will be sent by our office."

http://www.okaloosapa.com/exempt.html#military
 

SynixMan

Mobilizer Extraordinaire
pilot
Contributor
^^ On that note too, if you have a newish home in FL, get a "Wind Mitigation Inspection" completed by a local certified home inspector. It can knock hundreds off your homeowners insurance premiums.
 

Gatordev

Well-Known Member
pilot
Site Admin
Contributor
Well that's pretty cool. Except I don't/didn't have a home when I PCS'ed out of FL. But still.

^^ On that note too, if you have a newish home in FL, get a "Wind Mitigation Inspection" completed by a local certified home inspector. It can knock hundreds off your homeowners insurance premiums.

I'm getting close to closing on a newly built home and I ran the numbers with USAA on this. For a new home, it didn't make sense, but for a newly purchased new-ish home, you might break even or come out ahead.
 
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