New Sales Tax Law Gives NJ Boating Industry Big Boost
Tuesday, December 15, 2015
Posted by: Jay Corn
Via the Marine Trades Association of New Jersey (MTA/NJ):
The recreational boating industry in New Jersey was given a big boost this month when Governor Christie signed a new sales tax bill into law. The bill provides a partial exemption and maximum sales and use tax imposition amount for boats and vessels, as well as establishes a grace period for use tax imposition on certain boats and vessels used by resident purchasers.
"This is a tremendous victory for the industry and boating in New Jersey," stated MTA/NJ Executive Director, Melissa Danko. "We are very thankful to everyone that helped make this happen, including our legislative sponsors Senator Van Drew and Assemblyman Andrzejczak and especially Governor Christie for expanding the tax savings on all boats, signing this important legislation into law and supporting the boating industry in New Jersey. This new law will not will not only get more people out on the water enjoying our waterways but will ensure the future health and growth of the New Jersey recreational boating industry by increasing revenues and creating jobs.”
This new law reduces the tax rate to 3.5 percent across the board for boats, regardless of the price of the boat — with a cap of $20,000. The bill also includes a 30-day grace period for use tax imposition. The Senate approved the bill by a vote of 35-1 and the Assembly approved it 64-0.
Click here to read the entire bill
"Our industry has been struggling for many years following the economic downturn, the devastation of Hurricane Sandy and competition from other states with many lost sales,” Melissa said. “This new law will not only get more people out on the water enjoying our waterways but will ensure the future health and growth of the New Jersey recreational boating industry by increasing revenues and creating jobs."
Senator Van Drew stated in a release, "The production of boats and other vessels has declined in recent years due to a range of factors, including the economic recession and the impact of Superstorm Sandy. This new law will help to revive the industry through changes to our tax structure. It will allow us to compete with states like Pennsylvania, Maryland, Delaware and Florida. Ultimately, it will help to bring back consumers to our state for these purchases, supporting our shore-area businesses and growing local jobs.”
In summary, these new changes expand the tax savings to a larger segment of boat sales in the state. The sales tax will be reduced to 50 percent of the tax for every boat sold in New Jersey.
"I want to thank the governor for working with us and for signing this legislation, which is so important to New Jersey. Reducing the sales tax amount on non-commercial boats will provide a much-needed boost to the industry that we expect will have a real, lasting impact for years to come," Senator Van Drew stated.