|
Boat sales tax bill expected to give state a boost
By BETH FEINSTEIN-BARTL
Waterfront News Writer
A bill with the potential to create more jobs in the marine industry and drive boat sales revenue into the state is awaiting Florida Gov. Charlie Crist’s signature.
Marine industry executives and organizations are optimistic about it becoming law. Crist, who’s voiced past support, has until June 1 to approve the bill. If so, it then becomes effective on July 1.
The boating provision is one of 34 measures in the Jobs for Florida Bill (CS/SB-1752). The marine portion keeps the sales and use tax at 6 percent but places a first-ever cap of $18,000 on boat buys — regardless of size and price tag.
The Florida Yacht Brokers Association and the Marine Industries Association of South Florida label the legislation as “landmark.”
“It’s a win-win-win,” said Jeff Erdmann, legislative committee chair for the Florida Yacht Brokers Association. “It will boost revenue for the state, boost sales and boost jobs and services for people who work on boats.”
Currently, an FYBA study shows 63.4 percent of the boats sold by Florida brokers and dealers did not pay any sales tax, meaning the vessels were sold outside Florida in states and countries with more competitive tax policies, said Erdmann, president of Bollman Yachts in Fort Lauderdale.
“They just don’t buy boats here because it’s too expensive,” he said.
Under the proposed bill, studies estimate the state could collect $18.7 million in tax revenue from boat sales, compared to the $1.5 million that’s presently poured into Florida’s coffers annually, Erdmann said.
Additionally, it means more vessels will stay here too. Under the existing tax law, vessels purchased in places with more favorable tax policies must keep their newly acquired boats outside the state for a minimum of 183 days to avoid paying Florida’s use tax, Erdmann said.
“That means money is spent elsewhere on goods, services,” he said. “And where ever they spend money, those businesses hire people to do the work.”
Although all signs point to its enactment, if Crist doesn’t sign, the state legislature can vote to override the governor’s veto.
For more information, visit www.fyba.org .
 |
|
