NMMA tells N.Y. governor to nix proposed boat tax

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The National Marine Manufacturers Association submitted a letter to New York Gov. David Paterson, outlining reasons to reconsider a proposed tax in boats more than $200,000.

The letter cites the failures of the national luxury tax of the early 1990s as evidence that a state boat tax would fail at providing New York with much-needed revenue. It also provides Gov. Paterson with statistics on the current state of the New York boat industry.

“The impact of the proposed tax would hit New York marine dealers most immediately. About 38 percent of their sales are of boats 30-39 feet long, most of which retail for more than $200,000,” the letter states.

“Loss of even 20 percent of these sales to neighboring states, or to decisions to not purchase a vessel rather than pay the tax, would lead to even greater layoffs than already experienced in the New York market,” it says.

The NMMA notes that area dealers also have experienced significant sales declines since the New York National Boat Show had its dates moved to December. In 2001, attendance was 95,000 and at the most recent show, it dropped to less than 50,000.

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