Next message: David and Rae Ann Duer: "RE: [world-cruising] Tax Question about the USVI"
I am looking for some input on a vexing tax question. Hoping someone
here can shed some light. I own a cruising catamaran that is
currently moored in Mexico. She was built in South Africa, transited
the Atlantic and the canal before reaching Mexico, but has never seen
US waters. She is a USCG documented vessel, headed back to the
states within a few years. We will be cruising until then, with the
only longer term destination being the USVI, including the Spanish
Virgins, which are really a part of Puerto Rico, a US protectorate.
Finally - the question - when we take up a six month or longer stay
in the USVI, what will be the tax consequences? We are quite aware
that there has never been a payment of sales tax to any US taxing
authority - and are concerned with how we will be dealt with in 1)
USVI, and 2) Ultimately in Florida, which is her documented port.
We have had responses from so-called experts (all lawyers!) all the
way from "Don't worry about it - she is documented" to "Get over it -
you are going to pay sales tax at the rate assessed by Florida, to
somebody along the way". Troubling to us, there does not seem to be
a clear real world understanding of how this is dealt with - we have
even been told that on arrival in Florida, we will be hit with full
sales tax on the ORIGINAL purchase price of the boat - even though
she will then be 7 years old!! We REALLY need help here!!
