Any downside to becoming a Florida resident?

[SynixMan]

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.

Disclaimer as a laymans knowledge. My inspection was $75 once and saved me ~$250/yr on my premium. Any home built today in FL has to conform to building codes and you'll instantly get credit from insurance for that. I got additional credit for hurricane shutters, roof design, window type, and roof decking installation style as documented by the inspection.

 

[Duc'-guy25]

You'll have to register your motorcycle in FL and loose your awesome insurance at a good rate for bar minimum insurance at twice the rate. That's the only downside I can think of.

 

[Gatordev]

Disclaimer as a laymans knowledge. My inspection was $75 once and saved me ~$250/yr on my premium. Any home built today in FL has to conform to building codes and you'll instantly get credit from insurance for that. I got additional credit for hurricane shutters, roof design, window type, and roof decking installation style as documented by the inspection.

I had a discussion with USAA about this last week, and for my (soon-to-be) house, the inspection was more than the savings, at least in the short term. This did not include the extra shutters, though the roof did help, but since everything else will be brand new and to current code, there just wasn't the savings.

 

[CAVU]

I had a discussion with USAA about this last week, ...

Has USAA resumed writing new policies in Florida or are you grandfathered?

 

[CommodoreMid]

I got a new policy with them back in 2014, but I have new construction.

 

[Gatordev]

Has USAA resumed writing new policies in Florida or are you grandfathered?

They're covering certain areas. Jax is one of them. I'm not sure how widespread the coverage is, though. They also seem to only want to cover one residence.

 

[DanMa1156]

USAA is offering new policies in FL, but treading lightly. My insurance quote from them was more than double the lowest 5 local insurance agencies. Also, the wind mitigation inspection thing is interesting - all my insurers (USAA included) cared more about the design of my roof (a temple type design known as a "hip roof" was preferred over a typical northeastern style home with a gable roof).

 

[exNavyOffRec]

USAA is offering new policies in FL, but treading lightly. My insurance quote from them was more than double the lowest 5 local insurance agencies. Also, the wind mitigation inspection thing is interesting - all my insurers (USAA included) cared more about the design of my roof (a temple type design known as a "hip roof" was preferred over a typical northeastern style home with a gable roof).

Florida is one of those states that insurance companies don't like when it comes to homes, too much risk (rain, wind, wrath of god stuff), so many big companies broker out to other companies that are willing to take risk, so it doesn't surprise me that USAA has a high rate.

 

[picklesuit]

And sinkholes...

 

[AQ-AT-NAVCIV]

No downsides.

- Accurate info on vehicle registration. https://www.flhsmv.gov/military/titles-registrations-military-members/
- Get a Florida Drivers license while you are at it.
- Go ahead an transfer the registration of your vehicles.
- Some pencil monkey at PSD might try and give you some crap by asking you some of the questions on the form, but it is very simple, read and then sign at PSD www.dtic.mil/whs/directives/forms/eforms/dd2058.pdf

Yeah, When I bought a House in Florida I needed to change drivers Lic, and registration in order to get homestead exemption for taxes on home. Wife needed to do the same to get instate tuition. The suck side to this was I needed to get my 77 VW and 81 Jeep to pass emissions testing. I think JAX did away with them after I left anyway, go figure.

 

[DanMa1156]

Yeah, When I bought a House in Florida I needed to change drivers Lic, and registration in order to get homestead exemption for taxes on home. Wife needed to do the same to get instate tuition. The suck side to this was I needed to get my 77 VW and 81 Jeep to pass emissions testing. I think JAX did away with them after I left anyway, go figure.

Yeah, I can't remember what my inspection was, but we just registered my wife's car and it was painless and no inspection (the clerk at the tax collector checked her VIN and car color - that was it).

 

[EODDave]

Not quite. You pay sales tax where you bought it, just not to Florida. If you somehow convince the seller to not charge sales tax and also don't pay sales tax to Florida, that's considered fraud and brings some serious monetary penalties.

Not true. You can search this subject here in the forum. Florida has a provision that if you are in the military and are buying a car outside the state of Fl, you do not have to pay Fl sales tax if you do not bring the car back into the state for 6 months. I bought a 2016 F-350 in California a few months ago and didn't pay the sales tax or other California fees. It is legitimate.

 

[EODDave]

Oh, and let's not forget the "Bright Futures Scholarship". My daughter graduated high school in CA. Because I am a Fl resident, even though she did zero days of school in Fl, she was eligible for the scholarship. She is going to UF on an almost free ride. The scholarship comes in 3 award amounts depending on GPA and SAT/ACT test scores. If you have kids, look into this.

 

[insanebikerboy]

Not true. You can search this subject here in the forum. Florida has a provision that if you are in the military and are buying a car outside the state of Fl, you do not have to pay Fl sales tax if you do not bring the car back into the state for 6 months. I bought a 2016 F-350 in California a few months ago and didn't pay the sales tax or other California fees. It is legitimate.

http://www.boe.ca.gov/pdf/pub52.pdf

I'll let you read the fine print but here's the rule in California printed verbatim.

"Please note: If at the time the contract to purchase the vehicle is made the service member arranges to take delivery of the vehicle in California, the service member will be considered to have made an independent determination to use the vehicle in California and tax will apply."

I'm not for sure how you got away with not paying sales tax (you may qualify for an exemption listed in the pub) but the California laws are very clear.

Bottom line, if you are stationed in California, buy a car in California, and use the car in California, you are subject to sales tax.

What that does mean for a Florida resident stationed in California who buys a car in California, uses it in California, and later registers it in Florida is that they pay tax to California at time of purchase and will not have to pay tax to Florida.

My father in law is an accountant for a tax attorney in California. After my initial responses I double checked with him and he verified what I've written here.

It may be different in other states (I.e, Oregon), I can't comment on those situations.

Bottom line, guys like @EODDave may have avoided paying sales tax but according to the pubs and laws, it was an error and I wouldn't be surprised if California comes looking for that sales tax, with penalty, later on.

 

[EODDave]

Nope, bought the car in California and had them deliver it to me in Vegas (it was a great weekend). So, since it was delivered to me out of state, all was good. And was it a bit of a pain to do, yep. But well worth the time and effort.