Increase on Connecticut Boat Sales Tax is a Job Killer


This month it is Connecticut, next month it may be your state or country, as governments look for ways to find new revenue and "soak the rich." Our home state of Connecticut is on the verge of increasing sales taxes just on boats and planes 50%, to 9%. In 1991 the U.S. Congress proved to the whole world that raising sales taxes on boats not only did not raise any net revenue, it nearly killed the U.S. boating industry in the process. Dozens of builders, hundreds of boat dealers, and hundreds of thousands of people that worked for these companies were thrown out of work. This is déja vu all over again! And you could be next. CT's witching hour is April 18th -- just 5 days from now.

Taxes
The cruel irony of increased taxes on boats to "soak the rich" is that it only ends up putting blue and white-collar people -- shop floor employees, boat dealers, salesmen, marine mechanics -- out of work. The rich don't get soaked, they just put their money elsewhere. Duh!

On April 18th the Connecticut Legislature's "Finance, Revenue and Bonding" Committee is going to vote on two bills that, if passed, will kill jobs in the boating industry in the state. SB No. 1007 will add 3% of sales tax onto the current 6% that is charged for most all goods and services, a 50% increase on boats over $100,000. That means most new powerboats over 26' or so will get hit. The total sales tax for boats will be 9% -- almost exactly the amount of the Federal Luxury Tax imposed 20 years ago that nearly killed an industry.

New Property Tax

Also being voted upon will be SB No. 6387 which will allow local municipalities to hit all boats with a new annual property tax of up to 20 mills of value. It doesn't sound like much, but, of course, it is just the beginning. Connecticut boat owners will continue to have to pay to register their boats each year, and that money will simply go into the state's general fund and will no longer be returned to the local municipalities.

How To Respond

We urge Connecticut residents to email their state representatives TODAY to express your opinion about these new tax measures. To find out who your Connecticut senators and legislators are, follow this link and use the handy email form provided.

Find Your Connecticut Legislator...

http://www.cga.ct.gov/asp/menu/CGAFindLeg.asp

Remember -- There are only 5 days before the committee vote!