In the roughly 16 months since it became law, Florida's $18,000 sales/use tax cap on boat sales has preserved thousands of marine-related jobs and generated millions of dollars in additional tax revenue, the Florida Yacht Brokers Association and the Marine Industries Association of South Florida said in a statement.
A recent survey of Florida boat dealers reveals that in the first year after the tax cap was passed, collections of sales taxes on boats selling for more than $300,000 reached nearly $5.5 million and counting - a roughly 291 percent increase from previous tax receipts of $1.4 million.
“It’s clear that since the $18,000 sales/use tax cap became law on July 1, 2010, it has more than paid for itself by generating additional tax revenue and protecting Florida jobs,” FYBA president Cromwell Littlejohn said in a statement. “Capping the tax has allowed boat owners to operate their vessels in Florida, spending badly needed revenue with Florida businesses, not only in the marine sector, but also at local stores, restaurants and other non-marine businesses.”
The health of Florida’s $16.8 billion marine industry – and its 202,000 jobs – is tremendously important to the overall economic well-being and vitality of the state, MIASF president Kristina Hebert added.
“Florida offers some of America’s most inviting boating destinations,” Hebert said in a statement. “Florida’s boating market is truly international. The Florida sales/use tax cap creates an incentive for buyers to purchase and keep their boat in Florida while enjoying our year-round boating season.”