In a thoughtless act of recklessness, the Washington State Legislature has added language into an existing transportation bill (called SB 5801), which would add a 10% luxury tax on new and used yacht sales over $500,000. In a panicked effort to close the gap on budget shortfalls, the Washington State senate added the the vessel luxury tax language in at the last minute, "minimizing our ability to fight the details," NYBA lobbyist Jim Hedrick said in a statement.
'Taxing the rich' may seem like an easy way to quickly create revenue, however one only needs to look back a few decades to see the devastating impacts that inflict local businesses and workers.
"In 1990 a 10% luxury tax was applied to boats in the U.S. and the results were disastrous," says Bill Yeargin in an article called The Luxury Tax Myth. "Over 25,000 boating industry jobs were lost and a tax that was supposed to generate millions of additional government revenue actually cost the government revenue. Fortunately, Congress was quick to acknowledge the damage they were causing, and the tax was repealed. Unfortunately, before the repeal was enacted it severely damaged many American families."
Bill SB 5801 also places a luxury tax on aircrafts and recreational vehicles, in addition to boats and yachts. You can read the bill here and the relevant section is on page 11. The luxury tax on vehicles is in addition to a proposed fuel tax increase which the Senate wants at 6-cents per gallon extra, while the House is pushing for 9-cents. The Senate has already passed the bill which now heads to the House next week.
The Transportation Committee will use the revenue to fix roads, bridges, a ferry system, and fund other projects. The proposed budget will spend $5.4 billion more than the current budget, some of which goes to education, but also to cover expenses of existing programs and services.
United Yacht Sales stands with the Northwest Yacht Brokers Association and vehemently opposes the bill. We request anyone reading this call the following state representatives, no matter where you live, and let them know how this will hurt all of us in the boating industry.
HERE IS THE RECOMMENDED CALL-TO-ACTION
Call these key Transportation Budget members:
- Rep. Jake Fey (D-Tacoma), House Transportation Committee Chair: 360-786-7974
- Rep. Julia Reed (D-Seattle), House Transportation Committee Vice Chair,
360-786-7814 (Julia is also chair the maritime caucus (House and Senate) and would be a key ally in budget negotiations.) - Rep. Adam Bernbaum (D-Olympic Peninsula) 360-786-7916
- Rep. Andrew Barkis (R-Olympia), long-time ranking member, House Transportation 360-786-7824
- Rep. Sam Low (R-Snohomish), assistant ranking member, House Transportation 360-786-7967
Message To Leave: "This tax will dramatically effect working class people - boatbuilders, boatyard workers, boat detailers, mechanics, service facilities, boat brokers and the many unique small businesses that make up the vibrant Washington recreational boating community. While it may be 'aimed' at the wealthy, it will have a disproportionate affect on the working class recreational maritime community."
Process: Call - Leave a Message - Repeat for all Key Transportation Members.
ABOUT UNITED YACHT SALES
United Yacht Sales has the world's largest network of boat buyers and sellers in the industry, thanks to our team of over 250 yacht brokers in 104 different locations. Whether buying a luxury boat or selling one, we have the right expert on staff to assist you in navigating the brokerage market for your type of yacht. If you're looking at selling a boat, there is no quicker way to get activity than listing it with United. Our entire team is immediately notified every time a listing agreement is made with United Yacht Sales and many boats are sold before they ever even make it online. Our support team is among the best in the industry at marketing your yacht. 100% of our marketing budget goes towards advertising our clients' listings, a claim not many other firms can make. To get started listing your yacht, fill out our online form What's My Yacht Worth?
