House Bill 1345
Scope: Imposing a surcharge on retail sales or use of tangible personal property if the taxable price of specified items exceeds specified amounts; exempting specified sales from the surcharge; providing for the amount of the surcharge based on the taxable price of specified items; providing that specified exemptions under the sales and use tax do not apply to the surcharge; etc.
Status: House Hearing
Maryland Legislature has proposed to impose a “Luxury Tax” on the sale of new and used boats with a price tag over $35,000. The tax would be 1% on the amount of the sale above $35,000 and 2% of the amount over $90,000. This will be in addition to the 5% sales tax already paid on boat sales.
Something to consider:
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The federal government has already tried to impose such a tax in 1991. It was repealed in 1993 after costing thousands of marine manufacturing jobs nationwide while raising insignificant amount of revenue.
- The marine industry employs about 35,000 Marylanders.
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State of Florida, instead of raising taxes on vessel purchases, decided to place a cap on vessel tax. This increased sales in the state overall of large vessels.
In addition, House Bill 1307 already proposes an increase in registration fees. Combined with this bill, the Maryland boater will be faced with a daunting challenge, pay exuberant amount of taxes and fees, or find another state. It is logical to say that with the passing of these two bills, Maryland legislature will destroy the Maryland boat industry.
Thank you for our friends at Boat US for letting us know about this proposed legislation.
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