New Jersey Governor Phil Murphy has proposed to repeal the sales tax cut and the sales tax cap on all boat sales in the state. Additionally, Senator Vin Gopal introduced Senate Bill 2847, which would also repeal both. The NMMA strongly opposes both efforts and is actively working with stakeholders in the boating industry to prevent the measures from becoming law.
In 2015, New Jersey’s elected officials met in a mostly bipartisan fashion to halve the sales tax on boats, from 7% to 3.5%, and put in place a tax cap of $ 20,000 on sales. of boats. As a result, these measures helped ensure that revenue from the sale of boats would stay in the state and support the New Jersey nautical industry.
Between 2000 and 2015, the state lost more than 90,000 registered boats due to the economic downturn, Hurricane Sandy and surrounding states having lower tax rates and incentives for boat buyers. Following the passage of the tax cut and cap, new boat sales and registrations have increased, with New Jersey having seen an 8% increase in new boat sales over the past five years.
In response to both the governor’s proposal and Senator Gopal’s bill, the NMMA worked with the Marine Trades Association New Jersey, the Marine Retailers Association of the Americans, the Association of Marina Industries and members of the NMMA New Jersey to defeat tax increases.
NMMA has sent a letter to the governor’s office asking their administration to reconsider eliminating these measures as they benefit all boat buyers and the shipping industry. The NMMA also sent a letter to Senator Gopal, the leaders of the Senate and the Assembly, as well as the budget committees of both chambers.
Ed McCarthy, owner of McCarthy’s Marine Sales and president of the Marine Trades Association New Jersey published an article in the Star-Ledger and Times of Trenton explaining why repealing the sales tax cut and cap would be counterproductive , which is available here.