FORT LAUDERDALE, Fla. – An $18,000 boat sales tax cap passed in the Florida State Legislature as part of the larger Jobs for Florida Bill on Friday, according to a release from the Florida Yacht Brokers Association.
The bill now moves to Gov. Charlie Crist. He will have 15 days from the time he receives it to sign it into law, which would take effect on July 1.
“The $18,000 Boat Sales Tax Cap has achieved a major milestone by passing both the Florida State House and Senate. Now it’s all up to the Governor,” Jeff Erdmann, president of Bollman Yachts of Fort Lauderdale, said in the release.
According to the Yacht Brokers Association, Florida has been losing boat sales and service revenue to other states and countries that offer more favorable sales tax rates. The Boat Sales Tax Cap limits the 6-percent Florida state sales tax on a boat purchase to $18,000.
Frank Herhold, executive director of Marine Industries Association of South Florida, which advocated for the bill along with the Florida Yacht Brokers Association, said the cap could have an immediate impact.
“Florida, always a popular place to purchase a vessel, immediately becomes more attractive for those contemplating purchases over $300,000,” he said.