Fortunately, over the past decade, more and more states have copied the success of the federal trust fund and enacted their own state laws to capture state taxes for boating programs. Currently there are 32 states out of 53 jurisdictions (including the District of Columbia, Puerto Rico and U.S. Virgin Islands) that return state gas taxes to boating.

But boaters in 20 states are still being short-changed; they’re paying substantial state taxes on their marine fuel and their money is still building highways, not docks or launching ramps. Among those are some major boating venues such as New York, New Jersey, Rhode Island, Colorado, Virginia, Georgia, and Missouri.
Boaters have a big stake in this issue because basic services such as law enforcement, emergency response on the water, education classes, and facilities such as launching ramps depend upon a steady source of funding, just as local fire departments and schools do.

If a particular source of money is earmarked for a specific purpose it not only ensures a stable level of funding but keeps the boating budget from getting caught up in statehouse politics during the annual appropriations debate. Using taxes paid by boaters to pay for boating services upholds the “user pays, user benefits” concept, a logical way to pay for things for a special group.

Virtually all the states that capture marine fuel taxes for boating do so based on a formula, since no one actually tallies what gas is being sold where. Gasoline usage studies at both the state and federal level have found that marine use accounts for a minimum of at least 1% of all gasoline sold at retail. The federal Wallop/Breaux Trust Fund is based on 1.08% of all fuel sold at retail.

Unfortunately, many states get far less than the 1%, some as low as .03% in Maryland, or as convoluted as Alabama which gets 60% of 35% of 1% — but at least it adds up to half a million dollars for boating.
BoatUS has tracked state tax programs for over five years and recently completed a state-by-state survey (see map). If your state is either yellow or red, it may be time to start asking your state lawmakers why boating does not get its fair share of gas tax dollars. (States shown in yellow are not getting their 1% share and those in red are getting nothing.)

Ohio Makes Its Case

Legislation was approved in two states recently returning gas taxes to boating, but not without considerable effort. In both Ohio and Florida, millions more will be flowing into state boating programs, meaning more patrols on the water, better facilities, education programs and environmental research and enforcement.

“We wanted to see the situation improve for recreational boaters and for them to get their fair share back,” said Ken Alvey, boating law administrator for Ohio. No small matter: the Ohio Division of Watercraft was saddled with a formula that had not changed since 1964.

Boating’s share of Ohio state gas taxes was one-half of one percent in the late 1990s when the Lake Erie Marine Trades Association formed a broad coalition of boating groups to get a bill introduced in the state legislature to raise the share another 1/4 of a percent. Embracing everything from the Greater Cleveland Boating Association and Interlake Yachting Association to Southern Ohio Marine Dealers Association and Associated Yacht Clubs of Toledo, the coalition morphed into the Boating Association of Ohio.

In it’s first at-bat, it won a study of gas tax allocations commissioned by the legislature. Guess what: it found that boating should be getting 1% to 1.25% of all gas tax revenues.

In the next session, the association did get a bill passed giving boating another 1/4 of a percent, bringing boating’s share up to .75%. Instrumental in this effort was the hiring of a lobbyist as well as an Ohio State University Sea Grant study on the economic impact of boating to the state. The “Boating, Vital to Ohio” brochure became the bible of the legislature, Alvey said; everyone got a copy.

Equally important was a strategic plan already hashed out by the Division of Watercraft that spelled out what the state’s boating needs were and what any additional money would be used for.

Still aiming for that full 1%, the coalition went back again to the legislature in its next session for an additional 1/4 of a percent. By this time, fishing interests got involved and, as a compromise to fishing, both groups agreed to split any increase equally. Boating eventually got another 1/8 of a percent, bringing its total share up to 7/8 of 1%. (The 1/8 percent for fishing must go for boating related facilities and programs, not fish research or restocking.)

“The end result of all this is a better quality of experience for the boater,” Alvey said. “It’s an economic stimulus and a win-win-win for everybody.” To wit, Ohio has added 18 new patrol officers, five new remote field offices, five to seven boating sites upgraded, repaired or enlarged per year, and hired a planner and engineer to speed up capital improvement projects. “Before we got this increase in gas taxes, our capital improvements budget was zero,” Alvey said.

Florida Gets on Board

In the nation’s third largest boating state, Florida, the state boating program received a tiny amount of state gas tax money, and it was earmarked for fighting aquatic weeds, at least until last summer.

With tens of millions in boaters’ gas taxes going to pay for Florida roads, Florida marine trades officials thought it was time to take action.

A coalition led by the Marine Industry Association of Florida had done their homework and helped pass a bill in 2003 to significantly ratchet up boating’s share of state gas taxes that come just from marina fuel dock sales. The industry estimates that about $38 million in gas taxes are collected at Florida marinas alone.
Even though legislation approved in 2003 brings boating’s share up to $13.4 million over the next five years, it’s far better than the $2.5 million per year boating was getting before. Opposition was led by the highway interests who tried to derail the bill at the last minute.

“I think it’s appropriate that if the user pays, the user shall receive some benefit back,” said Jim Brown, director of the Florida Fish and Wildlife Conservation Commission. “It’s additional money for more launch ramps, more lanes at ramps, more parking, funding for marinas and grants to local groups for boating safety education.”

The most immediate improvement for boaters is the addition this year of 10 new patrol officers, going up to a total of 29 new positions. “It’s providing more protection for the boater on the water,” Brown said. The money will also consolidate a variety of state waterway signage offices into one that will improve their consistency and maintenance programs as well as collect all the boating programs into one new Office of Boating and Waterways.

Some of the boating money is also earmarked for research on manatee avoidance technology, as well as manatee zone enforcement.

There remains much to be done to bring other states up to par on returning boating taxes to boaters. BoatUS would like to hear from boaters, marine trades groups and others who are interested in taking this issue to their elected state officials. Write or e-mail BoatUS Government Affairs at GovtAffairs@BoatUS.com.

By Elaine Dickinson

For a complete rundown on how all the states are using their boating tax money, view the chart at BoatUS.com/gov, click on “State and Regional” and “Boating Taxes.”

©BoatUS Magazine, January 2004