Real Estate

Miami mansion owners say house is a boat for tax purposes

This house is not a dwelling — it’s a boat, and will pay property taxes as such. 

That’s in response to the owners of an unusually formed, 75-foot super-modern house boat anchored off Miami Beach’s Star Island. They are suing the county for hitting it with a $120,000 property tax invoice, claiming that their floating mansion is not a constructing — however a watercraft. 

“We believe the sole reason our client is in this position — an unconstitutional tax assessment — is because of the shape and the style and the look of this boat,” lawyer Ivan Abrams, who represents the Arkup boat’s owners: the British businessman Jonathan Brown’s company MacKnight International Inc., which purchased the vessel for $3.3 million final year, told the Miami Herald. “If it were designed like any other yacht, we don’t think we’d be in this position.”

Taxing the solar-powered, rainwater-collecting and purifying system-equipped residence as a landlubbing deal with simply because it is a little totally different trying than its fellow yachts units a slippery slope of a tax precedent, added co-counsel Karen Lapekas. “Every boat sitting on Dinner Key right would be subject to property taxes,” stated Lapekas.

arkup houseboat sues miami
The Arkup is being taxed as a dwelling.
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arkup houseboat sues miami
An aerial view from a drone reveals the Arkup houseboat.
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arkup houseboat sues miami
The throttle on the houseboat.
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arkup houseboat sues miami
Inside the primary ground dwelling space of the Arkup.
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arkup houseboat sues miami
The vessel has 4,350 sq. toes of complete area, together with 2,600 sq. toes of complete indoor area and 1,750 sq. toes of complete outside area.
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arkup houseboat sues miami
The yacht is meant to be a greener various to current fashions.
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arkup houseboat sues miami
The vessel is solar-powered.
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“If this boat is a floating structure, that means all the other yachts docked around Palm Island and Star Island that are not used every single day to go cruising are subject to taxation,” Abrams added. 

Critics level out that the “Arkup barely meets seaworthiness requirements: it can travel up to five knots (5.75 mph) per hour, has a bow deck with controls for navigation, and has small 136 horsepower thrusters and an anchor system” Jalopnik assessed, figuring out “It honestly comes across as a loophole for rich people to live on the water and not pay property taxes.”

It is true, nevertheless, that in figuring out how a lot to cost the Arkup’s owners within the November 2021 tax invoice, which is now the topic of litigation, the property appraiser’s office did worth the Arkup by evaluating it to the worth of different yachts. 

After being hit with the tax invoice, the proprietor employed a captain for the purported vessel and took three members of the property appraiser’s office — in addition to a county lawyer — for a two-hour tour of the Bay, the Herald reported.

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