New Jersey Would Slash Sales Tax on Boats
- Sales Tax News
- Sep 25, 2015 | Gail Cole
Update, 12.10.2015: Gov. Christie has signed S 2784, which limits sales and use tax on boats to $20,000.
New Jersey lawmakers seem to be reaching consensus on the best way to alleviate tax on watercraft.
Last August, Governor Chris Christie conditionally vetoed Senate Bill 2784, which sought a maximum sales tax of $20,000 on boats and vessels. He said he wanted tax relief for all wishing to purchase boats, not merely those who purchase high-end vessels.
It seems he may get what he wants. On Thursday, the Senate overwhelming approved an amended version of S 2784, which creates a “partial exemption and maximum sales and use tax imposition amount for sales and use of boats and vessels.” The new version cuts the state’s 7% sales tax in half for qualifying purchases.
Only one senator opposed the measure: Sen. Shirley Turner (D), who said, “It does nothing to help lower-income residents.” Fellow Democrats, such as Sen. Jeff Van Drew, disagreed. Drew said, “A lower sales tax would help mechanics would help mechanics, boat manufacturers and marina workers who suffer from slumping sales lost to other states with lower rates, like Florida and the Carolinas.” It is, he said, a job creator.
This is not quite a done deal; the measure now moves to the Assembly for consideration.