Vessels Accepted as Trades
NOTICE: The information below was obtained directly from the Division of Motorist Services website. Links are provided so you may access the content on the DMS website.
When you accept a vessel as a trade-in for an RV, you must take title in your name before disposing of the vessel either at wholesale or retail.
The following questions and answers concerning vessels taken in on trade were provided by the Division of Motorist Services:
1. Q. Can a licensed motor vehicle dealer (not licensed as a vessel dealer) take a vessel in on trade for resale and reassign the title to the new buyer?
A. A motor vehicle dealer cannot reassign a vessel title to a new buyer. The dealership would be required to take title in the dealership’s name prior to selling the vessel. A vehicle dealership is only licensed to deal in specific items (i.e., vehicles). Therefore, they cannot sell miscellaneous items such as vessels, even if they take them in on trade. The dealership must indicate on the form HSMV 82040 that the vessel is in their inventory for resale, so sales tax would not be due. The registration should be transferred with a registration use of “non-use,” so the FL number can be transferred and no base tax charged.
2. Q. Can a vessel dealer (not licensed as a motor vehicle dealer) take a motor vehicle in on trade for resale and reassign the vehicle title to the new buyer?
A. A vessel dealer cannot reassign a motor vehicle title to a new buyer. They must take title in their name prior to selling the vehicle. The dealership must indicate on the form HSMV 82040 that the vehicle is in their inventory for resale, so sales tax would not be due.
Reference: This information may be found in DMS Procedure TL-10, Exhibit F. You may access this procedure by clicking here.