Skip to main content

Florida bill would cap yacht tax

The Florida legislature is considering a new bill that would put a cap on the sales tax charged for yachts and airplanes in an effort to stem the flow of sales going to other states and countries.

"It's an important bill," John Sprague, chairman of the legislative committee for the Marine Industries Association of Florida, told Soundings Trade Only.

"There are people that come to Florida from other states and countries. Because of the sales tax they're not going to stay in Florida, so we're not getting the benefit of any tax money," he says.

The Aviation and Maritime Full Employment Act would cap the sales tax on boats and planes at $25,000, according to a report in The Miami Herald. With a tax rate of 6 percent, that would cap the sales tax for anything above $400,000.

Some legislators say high taxes lead buyers to purchase boats out of state and storing it outside state lines.

Some lawmakers have criticized the bill, arguing that it's unfair to hand out tax breaks to the more affluent while the state is increasing the cost of a driver's license and other fees in order to balance the budget, the newspaper reports.

However, Sprague says it's not a tax break, but an effort to keep tax revenue and other business in Florida. He says consumers who buy and register their boats in Florida will stay in the Sunshine State to dock and service the vessel.

"If they're not collecting [the taxes] anyway, [the bill] really does not have an impact on the budget," he says. "It's a generator for the State of Florida, not a negative."

The bill is still working its way through the legislative process, but time is running out. Sprague says there are a lot of bills on the agenda and only two weeks left in the current session.

"There are going to be a lot of bills that don't get passed, but I'm hopeful for this one," he says.

— Melanie Winters

m.winters@tradeonlytoday.com

Related

VOLVO-EARNINGS

Volvo Penta Reports Q4, FY22 Results

Net sales of $470 million for the quarter were a 33% increase compared to the prior year period.

Pulse-Report

DEALERS: Are You Improving the Service Experience?

Our monthly Pulse Report survey asks this and other questions about your dealership. Take the survey here.

NMRA-SCHOLARSHIP

NMRA Sets Scholarship Deadline

Students pursuing education in the marine trades can apply for the National Marine Representatives Association awards until April 1.

MARINE-PRODUCTS

Marine Products Reports Record Q4

The builder of Chaparral and Robalo boats reported net sales were up 42% for the quarter and 28% for fiscal year 2022.

1_SHURHOLD

Shurhold Appoints COO

Forrest Ferrari has years of management, business development, IT and quality-assurance experience.

MOBILE-CATCH-CENTER

RBFF, Pure Fishing Partner for a First Catch Center

Pure Fishing will equip a mobile trailer with tackle and gear to bring fishing experiences to areas of South Carolina where participation is low.

Norm

An Oft-Overlooked Sales Opportunity

A recent report from the Recreational Boating & Fishing Foundation showed that women comprise 37% of all anglers. If you haven’t tapped this segment, you’re missing out.

1. 2023 new boat retail outlook

Too Many High-Priced Boats

To wrap up 2022, marine retailers reported lower demand, expressed more negative sentiment and voiced concerns about rising inventory. Boat prices and the economy remained top of mind for dealers in December.

Soundings Nov 2022

New-Boat Registrations Continue to Slide

As the gaudy sales figures from the pandemic continue to return to more realistic numbers, the main segments of the recreational boating industry saw new-model registrations of 4,421 in November, a 30.3% drop from 6,340 during the same time in 2021. .