Dealers in the Garden State are gearing up for another likely battle to save a decisive boat sales-tax cap. Meanwhile, spring promotions in Ohio dealerships are getting a boost from the state’s marine trade association.

New Jersey Gov. Phil Murphy is apparently firing another shot at the state’s marine industry by again proposing the repeal of the boat sales tax cap and reduction in his latest FY2026 budget to the state’s lawmakers. A similar attempt to repeal the tax cap and reduction was defeated in 2020.

“This critical tax cap and reduction was originally passed in 2015,” said Melissa Danko, executive director of the Marine Trades Association of New Jersey. “It passed with an overwhelming bipartisan vote to boost our boating industry after both a severe economic downturn and the devastation from Hurricane Sandy. Equally important, it was also crafted to ensure that our New Jersey marine industry didn’t continue to lose revenue to other states.”

New Jersey is within easy travel to neighboring states that cap the sales tax on boats. Raising the tax will make New Jersey dealers much less competitive in what is a highly competitive region.

“Lawmakers must be informed that when a boat is purchased, registered and kept in New Jersey, it is outfitted, upgraded and maintained in New Jersey by New Jersey businesses that employee New Jersey residents,” Danko said. “Moreover, maintaining the current tax structure is not a tax break for people who buy yachts. It’s all about ensuring that boating is accessible to everyone, the revenue remains here in New Jersey, and, especially, that the jobs and small businesses that sell these products are protected.”

The Murphy administration said repealing the tax cap will generate more revenue for the state. But that fails to recognize that if the boat sales tax cap and reduction is repealed, fewer boats will be sold and registered in New Jersey. Those boats will be purchased and docked in other states with more competitive tax rates. Not only will that sales tax revenue be lost, but also all the revenue from subsequent local purchases of accessories, services, maintenance and more.

MTA/NJ has begun contacting legislators asking for support to oppose attempts to repeal the tax reduction and cap. In addition, an aggressive strategy calling all association members plus national partners and the boating community at large are underway. More details are forthcoming.

Another Turbine Fight in Lake Erie?

It was just 14 months ago that a decade-long attempt to build wind turbines in Lake Erie succumbed to fierce opposition from marine trade associations in Ohio and Michigan, boat owner organizations, shoreline residents, environmental groups and others. However, many warned that “Icebreaker” could come back up. They were right.

A Maryland company, Mighty Waves Energy, has reportedly taken control of “Icebreaker,” the name given to the original plan and permit granted to the Lake Erie Energy Development Corp. to build six wind turbines off downtown Cleveland. The goal is to be the first freshwater wind farm in North America. Had the proposed turbines originally been built, they would have been the first in any of the five Great Lakes and were projected to trigger the installation of up to 1,600 more turbines in Lake Erie alone.

“While unconfirmed, it has been reported Mighty Waves Energy is contemplating the installation of floating turbines in our lake,” says Michelle Burke, president of the Ohio Marine Trades Association. “We know an existing five-year building certificate issued to [Lake Erie Energy Development Corp.] is still active, and we remain ready to again fight to protect our precious resource.”

The questions raised by Icebreaker — from negative environmental impacts on drinking water and fisheries to rate-payer costs — were never adequately researched and answered, Burke said. They will be front and center if any confirmed plans for turbines surface again.

“We are not opposed to clean energy,” said Nicki Polan, Michigan Boating Industries Association executive director. “But we see so many unanswered questions about the possible negative impacts of turbines built in these environmentally sensitive waters. We must stand against any such development.”

The five Great Lakes hold more than 20% of the world’s fresh water. Ohio, Michigan, Indiana, Illinois, Wisconsin, Minnesota, Pennsylvania and New York border the lakes. And the region represents more than a third of the industry’s annual boat sales.