Vessel use by manufacturers or dealers

From the 2024 DOR Tax Exemption Study

82.12.800; 82.12.801; 82.12.802 - Vessel use by manufacturers or dealers Description These statutes relate to the application of use tax for businesses that manufacture or sell vessels and vessel trailers. Use tax is exempt on the following uses of a vessel and trailer by the manufacturer or a vessel dealer: - Testing, setting up, repairing, remodeling or otherwise making the vessel seaworthy. - Training of employees who are involved in the manufacturing of the vessel. - Promoting the sale of the vessel. - Loaning or donating the vessel to nonprofit organizations or governmental entities for limited periods. - Transporting, displaying, or demonstrating the vessel at boat shows. - Delivering, showing, and operating the vessel for a prospective buyer. Any personal intervening use of the vessel by the manufacturer or a dealer is subject to use tax. However, use tax in such instances is measured by the reasonable rental value of the vessel for particular use, rather than the fair market value, if the dealer can demonstrate the vessel is truly held for sale. Purpose To clearly identify the uses of vessels and related equipment which are not considered as taxable "intervening" uses and t