Tax break for yachts splits Palm Beach County Democrats
by Michael C. Bender | April 6th, 2010
A tax cut on sales of boats worth more than $300,000 was approved by the Florida House tonight on a 79-36 vote that divided the Palm Beach County Democrats.
Supporters argued that the break, which caps sales tax bills on boat purchases at $18,000, is supposed to help boat builders, who Republicans said are increasingly leaving the state. (The bill is entitled the “Florida Maritime Full Employment Act” and a similar Senate bill includes an identical cap on plane purchases.)
Rep. Tom Grady, R-Naples, even disputed that his bill could accurately be called a tax break. “This bill focuses on a tax that’s not being collected because … you can buy boats in other states and not pay a tax.”
But opponents said the bill would do little to help the 1.1 million Floridians suffering from unemployment and thousands more whose home values have collapsed.
“I’d like to re-title the bill the Florida Working Person’s Protection Act and create a sales tax exemption on underwear,” said Rep. Adam Fetterman, D-Port St. Lucie. “At least then we’ll be doing something that will help every Floridian.”
Three of the six Democrats who helped the Republican majority approve the bill were from Palm Beach County: Joe Abruzzo, Mack Bernard and Kelly Skidmore. The Palm Beach Democrats who opposed the bill were Mary Brandenburg, Mark Pafford, Kevin J.G. Rader and Maria Sachs.
(Just by way of reminder – another Palm Beach County Democrat, U.S. Rep. Ron Klein, pushed to include breaks for the yacht industry in the federal stimulus package.)
Tags: Adam Fetterman, Joe Abruzzo, Kelly Skidmore, Mack Bernard, Ron Klein, tax breaks, Tom Grady, yachts
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April 6th, 2010 at 7:02 pm
I am glad someone got something right. The 1990 Luxury Tax on Yachts virtually closed a US industry and caused thousands to be laid off. At the same time foreign yacht builders got a bonanza. Maybe Democrats should be required to take ECO 101. While this does not undo the error of 1990 it may help.
April 6th, 2010 at 7:27 pm
As one who is employed in the marine industry, I welcome this legislation. Remember, there are more people employed in this industry than there are wealthy yacht owners. The trickle-down effect of their spending to those of us in this industry including manufacturers, service industry, crew, marinas etc. far exceeds the tax break granted.
About time they realize the wealthy directly or indirectly create jobs and stimulate the economy with their spending. Glad we are not penalizing them for their success.
April 6th, 2010 at 7:57 pm
The Marine Industry provides more jobs to Floridians than the Citrus Industry. We need to make Florida attractive to this growing industry. Kudos to my representative Mack Bernard for understanding what the Marine Industry provides for residents in his district.
April 6th, 2010 at 8:13 pm
I have a yacht on order with a Florida builder. I was going to register it in The Cayman Islands. But I would much rather pay the 18,000 to Florida. While this may be a tax break for some I believe there will be many yacht owners who now register thier boat in Florida. The state may actually come out ahead from a tax perspective.
April 6th, 2010 at 8:21 pm
It’s refreshing to see the idiots in Tallahasse get something right. The yacht business is a powerful economic engine for Florida. …and unlike development, it doesn’t destroy the state!
April 6th, 2010 at 9:18 pm
Before you pass such a bill, how about obtaining some business commitments to stay here for a set number of years first! Heck, even offer them some tax abatements along with the reduced sales tax. No commitments from them mean that they’re leaving anyway, so don’t waste the ink on the bill!
April 6th, 2010 at 11:14 pm
Wonder which state legislature boys needed new toys this year?
They just bought themselves one heck of a deal on a multi-million dollar yacht and plane set.
That’s OK, their tax cuts will soon put this college graduate out of work, and I’ll be collecting full unemployment just like everyone else here.
April 7th, 2010 at 6:15 am
DURING THIS TIME OF BUDGET SHORTFALLS IT WOULD MAKE SENSE TO RAISE THE TAX ACROSS THE BRD @ 10%.
April 7th, 2010 at 7:36 am
The boys in north Florida just don’t get it.
Florida is about in the basement financially. Sure, people work in the boat industry. They also work printing newspapers, selling hot dogs, and cleaning out septic tanks. Shouldn’t their tax giveaway for the megawealthy also translate to “tax breaks” for the people who ccould use it just as much if not more. If you applied the logic of the legislature to all industry, by gosh and by golly every business would benefit and jobs galore would not be lost or moved to more advantageous states or countries. I kinda’ smell a fish in the boat business in Florida and this fish kinda’ stinks.
April 7th, 2010 at 7:55 am
The other Rob and Local Yocal don’t understand you can buy a yacht today and register it in the Bahamas and not pay a dime in sales tax. The state is not giving anything away here, they are trying to get some dollars back!
Delaware, NH, NC, SC also allow yacht registration with no tax or a few hundred dollar fee. FL is just catching on and who wouldn’t register their vessel out of area to save hundreds of thousands of dollars! 6.5% on 10 million is 650K!
April 7th, 2010 at 9:17 am
I agree this is a wise move as $18,000 is better than nothing as many in the past have registered their yachts else where, and soon with a VAT added to everything you buy there will be more taxes.
April 7th, 2010 at 9:24 am
This is a simple math problem for anyone buying a boat worth over 200k. I am a yachtbroker and after being trained by professionls who charge $22,000.00 or more for a Cayman or Marshall Islands Registry, I actually have performed offshore closings for 6-$8,000.00 for customers who LEAPED at the chance to save 10′s of thousands or more in taxes (and there is the added protection from lawsuits that an offshore entity affords for the yacht owner as well.)
If you are the boat buyer and your choice is to pay sales tax or pocket anywhere from 6k to 600k would you do? Better to get $18,000.00 from 100′s of boat buyers than 0 from inteligent buyers don’t you think? Hello????Anyone?
April 7th, 2010 at 12:43 pm
i agree this ids better than nothing at least they are trying to help you out
April 8th, 2010 at 5:10 pm
Does the Florida Constitution allow for discrimination?
Does it allow the legislature to elevate one group of citizens over another?
Do all citizens have the same rights or don’t they?
Socialism in ANY form is immoral and EVIL!
April 17th, 2010 at 4:54 pm
Rhode Island has ZERO tax on boat sales and same for parts used in boat building…it has a healthy boating industry.