Call Your Representatives About the Sales Tax Cap Bill - In Committee Thursday, June 11th

Your support is needed to help pass A3856/S2784, which provides maximum sales and use tax imposition amount for sales and uses of boats and vessels; establishes grace period for imposition of use tax on certain boats and vessels used by resident purchasers. A3856 is sponsored by Assemblyman Andrzejczak and S2784 is sponsored by Senator Van Drew and Senator Jim Whelan.

 

This bill is up in Committee on Thursday, June 11th at 10:30 AM.

 

Click Here to View the Bill. 


As we have reported, legislation has been introduced that would cap the amount of sales and use tax that can be levied on a noncommercial boat in New Jersey at $20,000. The purpose of this bill is to provide support to the marine industry in this State by encouraging sales of new boats and vessels, and to allow New Jersey residents an annual window, of a limited duration, to use boats and other vessels, that are purchased and ordinarily kept and maintained at an out-of-State location, in this State without incurring a tax liability. Currently, boats and other vessels that are acquired by residents of this State from a dealer outside this State for use outside this State are subject to use tax at the time the boat or other vessel is first used in this State, unless the resident is eligible to claim a credit for sales tax paid to another state or jurisdiction.


This legislation is critical for NJ to support the boating industry and stop the loss of revenue and sales to other states with caps and tax breaks in place. NJ faces serious competition from other states. Florida caps sales tax on boats at $18,000, Maryland at $15,000 and most recently buyer in NY will only pay tax on the first $230,000 of the purchase price. Many boat buyers are simply choosing to do business out of the state and not paying taxes at all. That also means the state and businesses are losing additional revenue on fuel, services, products, fishing tackle and everything that a boater spends money.  This has far reaching impacts on the economy, jobs and the boating industry as a whole. There has already been push back and opposition to this legislation. It is imperative that members take a few minutes to make our voices heard and demonstrate to our leaders that the boating industry in NJ is serious business and action must be taken now. 

Summary:

 

This bill provides for a maximum limit on the amount of sales and use tax that can be imposed and collected on the sale or use of a boat or other vessel, and establishes a limited grace period for the imposition of use tax on certain boats and vessels that are purchased out-of-State, for use out-of-State, by New Jersey residents and subsequently used, on a temporary basis, within this State.

 

The bill provides that the maximum amount of tax imposed and collected on the sale or use of a boat or other vessel in this State is limited to $20,000. This maximum limitation on the imposition of tax will principally apply to new sales and uses of non-commercial boats and vessels, including motorboats, sailboats, and other yachts and cruisers, that are not eligible for the exemption currently granted for sales and uses of commercial ships and vessels under N.J.S.A.54:32B-8.12.

 

In addition, the bill establishes a limited grace period for the imposition of tax on the use of certain boats and vessels by resident purchasers by providing that the use within this State of a boat or other vessel for temporary periods, not totaling more than 30 calendar days in a calendar year, will not be subject to the State's compensating use tax.  

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What Can I Do?

 

Call the key decision makers listed below to show your support for moving the bills.

 

What Do I Say?

 

Introduce yourself, your business, and tell them you're a member of MTA/NJ.

 

- Tell them you are calling to ask that they support S2784/A3856.

 

- Tell them the bill is important to rebuilding the recreational boating community following Sandy and the economic downturn.

 

- Tell them that NJ faces serious competition from NY, DE, MD, NC and FL who all have or are expected to have a sales tax cap for boats.

 

- Share any personal experience from losing a sale/customer to another State with a tax cap.

 

Thank them and say MTA/NJ will follow up if they need more info.

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935 Kings Highway
Suite 400
West Deptford, NJ 08086

199 East Broadway
1st Floor
Suite G
Salem, NJ 08079

PHONE NUMBERS: (856) 251-9801 (West Deptford)
(856) 339-0808 (Salem)
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985 Stuyvesant Ave.
Union, NJ 07083

65 Jefferson Ave.
Suite B
Elizabeth, NJ 07201

PHONE NUMBERS: (908) 624-0880 (Union)
(908) 327-9119 (Elizabeth)
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Senator Nilsa Cruz-Perez

Audubon Commons Center
130 Black Horse Pike
Suite D-3
Audubon, NJ 08106

Camden City Hall
520 Market St.
Suite 104
Camden, NJ 08102

Gloucester County Justice Complex Annex
114 North Broad St.
Woodbury, NJ 08096


PHONE NUMBERS: (856) 547-4800 (Audubon)
(856) 541-1251 (Camden)
(856) 853-2960 (Woodbury)
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Senator Joseph M. Kyrillos Jr.

10 Hwy. 35
2nd Floor
Red Bank, NJ 07701

PHONE NUMBER: (732) 671-3206
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Senator Steven V. Oroho

One Wilson Drive
Suite 2B
Sparta, NJ 07871

1001 Route 517
P.O. BOX 184
Allamuchy, NJ 07820

PHONE NUMBERS: (973) 300-0200 (Sparta)
(908) 441-6343 (Allamuchy)
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1 Harmon Plaza
Suite 205
Secaucus, NJ 07094

PHONE NUMBER: (201) 770-1303
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545 Cedar Lane 
Teaneck, NJ 07666

PHONE NUMBER: (201) 530-0469
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"New Jersey's Voice on the Water"
2516 Highway 35, Suite 201
Manasquan, New Jersey 08736
P. (732) 292-1051 | F. (732) 292-1041
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