Google+

Florida’s Maritime Tax Law Has National Import

With ten times more collected in sales tax revenue after including maritime provisions in 2010, Florida’s maritime tax law is proving its worth. 

As the national debate ebbs and flows over whether cutting taxes will spur economic growth and job creation, Florida’s recent experiment in capping a sales-and-use tax on boats is enlightening. The state collected nearly 10 times as much sales tax revenue as was projected in the first year following the inclusion of maritime provisions in a major jobs bill signed into law in 2010, according to a study just released by the Florida Yacht Brokers Association (FYBA) and the Marine Industries Association of South Florida (MIASF).

The new law puts an $18,000 sales-and-use tax cap on boats purchased or brought into Florida. Research indicated that Florida’s marine industry was losing sales to nearby states and foreign countries with lower or no sales taxes at all.

The new sales-and-use tax cap generated in excess of $13.46 million in direct sales tax revenue for the state, compared to a $1.5 million first-year loss that had been projected by a Florida legislative staff analysis. Thomas J. Murray and Associates Inc. conducted the initial research and subsequent survey.

Prior to July 1, 2010, all boats sold and or delivered in Florida were subject to a six percent sales-and-use tax, unless specifically exempt. A new 34-ft. powerboat costing $400,000, for example, would cost $24,000 more in taxes. In comparison, South Carolina has a $300 sales tax cap on boats and in North Carolina the cap is $1,500. No sales taxes are levied in the U.S. and British Virgin Islands as well as the Cayman Islands. As a result, more than six out of 10 buyers of boats sold by Florida brokers were registering and operating their boats outside of Florida in order to legally avoid paying Florida’s sales tax.

Especially hard hit by the Great Recession, the state’s $18 billion marine industry which employs 220,000 Floridians, sought help from the Florida legislature pointing out that the state’s six percent sales-and-use tax was counterproductive. Small business owners argued that it provided an incentive for Floridians to purchase boats out of state and maintain and provision them elsewhere, resulting in a loss of jobs and economic activity in Florida. The hefty use tax also discouraged non-residents from bringing their boats to Florida for service and provisioning.

Among the survey’s findings:

  • The average sales price for post-cap transactions in Florida was $907,002 – nearly double the pretax value of closings taking place in Florida prior to the cap.
  • In the post-cap era, transactions for which either no sales tax was paid, or the closing was conducted out of state, dropped from 21.5 percent in the pre-cap era to an estimated 12.8 percent following implementation of the sales tax cap.

“The results of our survey research demonstrates beyond a doubt that setting a reasonable tax basis for high dollar purchases provides an incentive for more boats to be purchased, provisioned and kept plying the waters of Florida,” said FYBA spokesman Jeff Erdmann, owner of Bollman Yachts of Fort Lauderdale. “More boats sold and registered in Florida means more business and jobs for Floridians,” he added.

“I especially want to thank those legislators who were willing to listen to reason and research when it would have been much easier to stereotype the marine industry,” said Erdmann. He singled out state Sens. Don Gaetz (R-Destin) and Ellyn Setnor Bogdanoff (R-Fort Lauderdale) as well as Reps. Tom Grady (R-Naples) and Will W. Weatherford (R-Wesley Chapel) for pushing the sales-and-use tax cap through the legislative labyrinth and helping to preserve jobs in Florida’s marine industry.

About Florida Yacht Brokers Association

The Florida Yacht Brokers Association (FYBA) is composed of more than 1,100 members representing over 400 businesses. Each member is required to not only abide by a code of ethics to protect the public against fraud or misrepresentation, but to endeavor to eliminate any practices which could be damaging to the public or to the integrity of the yacht brokerage profession.

About Marine Industries Association of South Florida

Marine Industries Association of South Florida (MIASF) members – comprised of marinas, boatyards, boat builders, megayacht manufacturers, yacht and charter brokers, craftsmen, technicians, marine suppliers, wholesalers and retailers plus a wide range of other marine-related businesses – are primarily located in the South Florida region to serve this world-renowned marine community known as “The Yachting Capital of the World.”

REQUEST INFORMATION

Entertainment

Top Ten DVD List for August 22, 2017

  This Week’s DVD Releases by Kam Williams Top Ten DVD List for August 22, 2017                       Nova: Poisoned Water [Flint, Michigan Expose'] https://www.amazon.com/exec/obidos/ASIN/B071HG59CK/ref%3dnosim/thslfofire-20 Guardians of the Galaxy, Volume 2 [Marvel Comics Superheroes Sequel] https://www.amazon.com/exec/obidos/ASIN/B06ZXWR8C5/ref%3dnosim/thslfofire-20 Supergirl: Season 2 [Woman of Steel Battles a New Set of … [Read More its Good for You.....]

Lifestyle

Girls Trip! Head to South Louisiana for Food, Fishing, and Culture

  Girls Trip! Head to South Louisiana for Food, Fishing, and Culture By Craig Lamb Ah, the New Orleans French Quarter. The sound of jazz coming from Preservation Hall. The taste of fresh beignets and café au lait at Café du Monde. Art galleries and shopping. French, Creole and Cajun cultures. It all has the makings of a girl’s getaway vacation, with a catch, and quite literally. A short drive through the scenic marshland is Home Run … [Read More its Good for You...]

Outdoors

“X” Marks the Spot for Deer Hunting in Kansas: Welcome to Xtreme Hunts

  “X” Marks the Spot for Deer Hunting in Kansas: Welcome to Xtreme Hunts   If you are looking to dive into a quality deer hunting experience in the state of Kansas, Xtreme Hunts is the place to go. Trophy whitetail deer hunts is what this company is all about. Being established in 2011, the company first came to be in Kansas because of the massive amount of encouragement that Xtreme Hunts received from their clients in Illinois; they … [Read More its Good for You...]

Sports

College Football Arriving Soon!

  College Football Arriving Soon! by Amy Lignor   Ask any college football fan and they will tell you that it seems like an eternity waiting for the season to begin. But, have no fear, the kick-off to the college season is almost here, with Colorado State and Oregon State hitting the field on Saturday, August 26th at 2:30 p.m. ET. On the same day, fans of Oregon State and Colorado State will see an active match-up, and Portland … [Read More its Good for You...]

Travel

Going Back in Time on the Ultimate Steamboat Vacation

  Going Back in Time on the Ultimate Steamboat Vacation by Amy Lignor   Many people love taking a cruise. But it is the river cruise on that glorious steamboat that not only offers all the benefits a big ocean liner offers, but also creates a more personalized, intimate vacation experience. It is a unique recipe: being able to witness stunning landscapes, mixed with amazing history, while dining on acclaimed regional cuisine and … [Read More its Good for You...]

Real Estate

Real Estate: Refinancing Rates on the Rise in 2017

  Real Estate: Refinancing Rates on the Rise in 2017 by Amy Lignor   The term ‘meteoric rise’ usually applies to something fun. Think: A Hollywood actor who has been ‘discovered.’) Unfortunately, when it comes to this article, ‘meteoric rise’ is something that will not bring a smile to one’s face. To put it simply, if you wish to refinance your home, you need to do it ASAP. If choosing to wait too much longer, homeowners across the … [Read More its Good for You.....]

Business

The New Airline Fare to Avoid: Basic Economy

  The New Airline Fare to Avoid: Basic Economy by Amy Lignor   Whether on business or going on vacation, buying airline tickets in this day and age is getting more difficult. The most recent term in airfares is “Basic Economy.” Now, all people want to nab the cheapest flight they can get in order to save money, yet even travel agencies are now scrambling to explain to their clients that “Basic Economy” may save $30 to $50 from a … [Read More its Good for You...]

Green Living

Creating the Perfect Vegetable Garden

  Creating the Perfect Vegetable Garden by Amy Lignor   Many are still dealing with that wintery mix Mother Nature just loves to toss down from the sky this time of year. Yet, that gardener living inside the soul – the one just dreaming of the sunny skies and lazy rainy days that are must-haves in order to grow the best vegetables possible – is already jotting down the facts, tricks and tips they need to know in order to make that … [Read More its Good for You...]

Books

Book of Black Heroes

  Book of Black Heroes Political Leaders Past and Present by Gil L. Robertson, IV Foreword by Myrlie Evers-Williams Just Us Books Paperback, $12.95 80 pages ISBN: 978-1-933491-21-9 Book Review by Kam Williams “The first African-American political leaders began to serve following the Civil War...Known as Reconstruction, this period represented a window of opportunity for African-Americans... Many [Black] political leaders emerged … [Read More its Good for You...]