Skip to main content

Maryland trade group backs cap on excise tax

Some Maryland boaters are opting to dock their boats in neighboring states because of high excise taxes.

That’s according to a report in the Capital Gazette, which says Hamilton Chaney, president of Herrington Harbour North Marina, lost another customer last week.

Dr. Richard Rende, a 60-year-old orthopedic surgeon from Steamboat Springs, Colo., told Chaney that his 48-foot sailing catamaran would be departing early from Chaney’s marina. On June 25, Rende arrived at the marina, where he pays $1,000 a month to dock. He has spent $30,000 in Maryland — mostly on boat work with different companies, but also at local restaurants and hotels.

But Rende is leaving for Delaware to avoid Maryland’s vessel excise tax, which would force him to pay 5 percent of the value of his boat if he stayed in the state longer than 90 days this year.

“People like me, we spend a lot of money,” he told the paper. “And you’re going to lose all that money if you don’t change [the law].”

The excise tax is becoming more of an issue for an industry struggling to stay afloat and some say it’s the reason Maryland didn’t enjoy rebounding boat sales in 2011. Some boating advocates say capping the tax, as Virginia did years ago and Florida did in 2010, would grow tax revenue for Maryland.

The Marine Trades Association of Maryland hopes to propose such a bill in next year’s General Assembly

Annapolis, known as the Sailing Capital of the World, is in the bottom half of the country in total sales of boats, engines, trailers and accessories. Maryland’s sales fell from $183 million in 2010 to $162 million in 2011, placing the state No. 26 in the nation. In 2008, that number was $248.5 million.

Click here for the full report.

Related

Norm

Email Is Your Ticket to Holiday Sales

Developing an effective email campaign can bolster sales and help fill winter coffers at your dealership.

1_NMRA

NMRA Presents Annual Awards

Edson CEO Will Keene and ComMar Sales president Tim Conroy were recognized for their contributions to the marine industry.

1_ PULSE.PING.2

DEALERS: Are Interest Rates Impacting Demand?

This month’s Pulse Report survey asks dealers whether interest rate increases are causing a downturn in boat sales. Take the survey here.

1_EPROPULSION

EPropulsion, Mack Boring Partner with Crest

Pontoon builder Crest will use an ePropulsion Navy 3.0 Evo electric outboard motor and an E175 battery for its 2023 Current model.

1_BENETEAU

Beneteau Reports Significant H122 Growth

The company reported that its revenue grew 8.6 percent and income increased by 30 percent during the first half of 2022.

1_WINTRON copy

Wintron Announces Virtual Show

The electronics distributor will hold its distributor show Nov. 2-9, allowing dealers to interact with sales representatives via phone, email or online chat.

AdobeStock_131758074

Rays of Light

A key indicator of U.S. consumer confidence rose for the first time in four months in August as the economy added 315,000 jobs.

1_YANMAR

Yanmar Announces Sales, Marketing Hires

The company has hired Bas Eerden as global sales manager and Michele Durkin as global marketing manager.