FORT LAUDERDALE, FL – OCTOBER 27, 2011 –
In the roughly 16 months since it became law, Florida’s $18,000 Sales/Use Tax Cap on boat sales has preserved thousands of marine-related jobs and generated millions of dollars in additional tax revenue. In fact, by making Florida a more attractive state in which to purchase and register a boat, the Tax Cap has provided the state’s highly prized marine industry with a much needed economic boost during difficult times.
But Florida’s taxpayers also have reaped benefits from the Sales/Use Tax Cap. By encouraging more boaters from around the world to purchase and operate their boats in the Sunshine State as opposed to neighboring states or other countries, it also has boosted state tax receipts from sales of boats costing more than $300,000, as well as related products and services.
A recent survey of Florida boat dealers reveals that in the first year after the Tax Cap was passed, collections of sales taxes on boats selling for more than $300,000 had reached $5,472,000 and counting – a roughly 291 percent increase over previous tax receipts of $1,400,000.
“It’s clear that since the $18,000 Sales/Use Tax Cap became law on July 1, 2010, it has more than paid for itself by generating additional tax revenue and protecting Florida jobs,” said Cromwell Littlejohn, President of the Florida Yacht Brokers Association (FYBA), which with the Marine Industries Association of South Florida (MIASF), pushed hard to win passage of the measure. “Capping the tax has allowed boat owners to operate their vessels in Florida, spending badly needed revenue with Florida businesses, not only in the marine sector, but also at local stores, restaurants and other non-marine businesses.”
The health of Florida’s $16.8 billion marine industry – and its 202,000 jobs – is tremendously important to the overall economic wellbeing and vitality of the state, according to Kristina Hebert, MIASF President.
“Florida offers some of America’s most inviting boating destinations,” said Hebert. “Florida’s boating market is truly international. This fact can’t be overstated as the Fort Lauderdale International Boat Show; the largest boat show in the world, opens today with high hopes for a strong turnout. The Florida Sales/Use Tax Cap creates an incentive for buyers to purchase and keep their boat in Florida while enjoying our year-round boating season.”
Passage of the Tax Cap would not have been possible without the grassroots support of those in and outside of the marine industry who wrote their State Legislators urging them to support the measure. FYBA and MIASF thank all those Legislators who supported the Cap, as well as former Governor Charlie Crist, who signed it into law.
“The primary beneficiaries of this law have been everyday working Floridians,” said Jeff Erdmann, Chairman of FYBA’s Legislative Affairs Committee. “By encouraging boaters to buy and register their boats in Florida, the marine industry is contributing millions of additional tax dollars to the state while creating jobs and helping the marine industry grow.”
Founded in 1987, the Florida Yacht Brokers Association (FYBA) has grown to become one of the world’s largest organizations of professionals engaged in the practice of selling and buying boats and yachts of all sizes and types. FYBA serves as a united voice for Florida boat brokers in the state’s legislative and regulatory processes, as well as providing ongoing education for its members. FYBA is headquartered in Fort Lauderdale, Florida. For more information, visit www.fyba.org
The Marine Industries Association of South Florida is a not-for-profit trade organization created to promote and protect the sound growth of the marine industry in south Florida for the benefit and education of its members, the community and the environment. The Association has 800 members in Broward, Miami-Dade and Palm Beach Counties and is the owner of the Fort Lauderdale International Boat Show.