New Jersey boaters got a fabulous Christmas gift Wednesday afternoon when Governor Chris Christie signed a sales tax reduction bill for New Jersey boaters bringing the state in line with its neighbors, and ending boaters fears of revenuers hanging out at their docks.
The new law reduces the tax on boat purchases to 3.5%; establishes a maximum tax of $20,000, no matter how large the purchase; and creates a safe haven of thirty days for visiting vessels to enjoy New Jerseys waterfront resorts, or participate in one of the many great fishing tournaments. The law is scheduled to go in effect Feb. 1, 2016.
This change should reinvigorate NJ‘s marine industry which was crushed by Hurricane Sandy, the economic downturn, and unfair competition, which will ultimately save hundreds if not thousands of NJ jobs. The change was accomplished through the collective efforts of the Marine Trades Association of NJ, the Recreational Fishing Alliance, and numerous marine industry leaders. This coalition worked for months with Senators Van Drew, Whalen and Assemblymen Andrzejczak and Johnson to pass this legislation.
The bill had remarkable bi-partisan support and nearly the unanimous votes in both parties and both houses as well as support from Lt Governor Kim Guadagno. Governor Christie then improved the bill with language he stipulated in his Conditional Veto and subsequently approved it. The result is a piece of common-sense legislation for the boating industry, boaters, tourism and our state.
What does this bill mean to you?
The New Jersey sales tax of 7% will now be reduced by 50% for every boat sold or berthed in NJ. This effectively makes the sales and use tax 3.5% across the board, regardless of the price of the boat – with a cap of $20,000!
How it helps…
1) If you purchase an average sized center console for $250,000, the tax savings are nearly $9,000!
2) If you purchase an offshore fishing boat for $2,400,000, your maximum sales tax liability is $20,000!
3) If you moved your boat out of state to avoid use tax, you now have a 30 day grace period.
4) If you purchased your boat in Florida and paid their cap of $18,000, you can return to NJ and your tax liability will only be $2,000!