Connecticut Boating News
May 6, 2011
Major boat taxes rejected, luxury tax still imposed
Following significant input from boaters, the final state budget did not contain many of the onerous tax increases targeted at recreational boats. The only boating tax proposal by Governor Malloy that emerged from the legislature is the imposition of a 7% luxury/sales tax on the purchase of boats where the total price exceeds $100,000. For boat sales less than this amount the sales tax will be 6.35% on the total purchase price.
April 21, 2011
Update on boat tax increases
The Connecticut Legislature continues to consider taxes that could have a significant impact on recreational boating. While it appears that several of the tax increases contained in the Governor's proposed budget have been dropped from consideration, including the extension of the personal property tax to boats, several still remain in play. In particular there are reports that a 'luxury' tax of 7% will be imposed on total value of the sale of boats greater than $100,000. Boat sold for less than this amount will continue to be taxed at the state sales tax rate, which is currently 6% of the total value of the sale.
Several legislative steps remain before these proposals are finalized. Boaters are encourage to continue to contact their legislators to express their views at www.boatus.com/gov/ctaction.
March 3, 2011
Significant boat tax increases contained in Governor's proposed budget
Governor Dannel P. Malloy has proposed significant tax increases for the marine industry in his 2012 budget. While we recognize that Connecticut, like many other states, is facing growing demands for services along with little to no increases in revenue, this proposal has the potential to have a devastating impact on the boating industry. In consultation with the Connecticut Marine Trades Association (CMTA) we urge you to voice concern to your elected representative.
The Governor has proposed the following tax increases:
- Impose sales tax on marine services including repairs and winter storage
- Impose a 3% luxury tax on boats costing more than $100,000
- Impose a $20 per thousand assessed value personal property tax on boats
- Eliminate the exemption from sales tax of the value of a boat traded-in
- Increase in the state sales tax, imposed on both new and used boat sales, from 6% to 6.35%
In addition to these significant tax increases, it is proposed to eliminate the state boating fund and divert boating registration fees to the general fund. Appropriations for programs the fund supports would have to come from the general fund, competing with all other state programs.
The economic burden being placed on recreational boating by these proposals has the potential to wreak havoc recreational boating. When the federal government imposed a luxury tax on boats in the early 1990s it had the effect of eliminating thousands of marine manufacturing jobs while raising an insignificant amount of revenue. For marine businesses such as mechanics and riggers, taxing their services will cause boaters to move the work (and their boats) to lower costs states such as Rhode Island. These tax increases will likely not raise the expected revenue while inhibiting the growth of boating
For specific questions about boating issues or BoatUS Government Affairs, please e-mail the department at GovtAffairs@BoatUS.com
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