To Amend The Law Concerning The Collection Of Sales And Use Tax On Motorboats; And To Subject Certain Used Motorboats To A Special Rate Of Tax.
Impact
The proposed bill is expected to generate additional revenue for the state by applying a specific excise tax on certain motorboat transactions. The collected taxes will be allocated to general revenues, the Property Tax Relief Trust Fund, and the Educational Adequacy Fund, which could enhance funding for critical state services. This measure may also impact the buying behavior of consumers in the motorboat market, influencing decisions based on total costs associated with purchase and registration. The estimates of revenue generation depend on the volume of transactions in the defined price range, implicating local economies reliant on motorboat sales.
Summary
Senate Bill 394 is proposed legislation aimed at amending existing sales and use tax laws specifically regarding motorboats. The bill introduces an excise tax of 2.875% on the gross receipts from the sale of used motorboats, trailers, and semitrailers priced between $4,000 and $10,000. This tax applies in addition to any existing state or local taxes, ensuring that buyers are aware that the tax amount could be higher than anticipated due to the cumulative taxation structure. The bill also clarifies the definition of motorboats and establishes guidelines for tax payment and collection, reinforcing the requirement for taxes to be paid at the time of registration.
Contention
Notably, the bill does not repeal any current tax exemptions but adds a new layer of tax responsibility which could be contentious among consumers and businesses. Critics may argue that this increased taxation could deter purchases in the affected market segments, potentially reducing sales volume. Additionally, the requirement to demonstrate proof of sales upon registration could introduce complexities for consumers who trade in or sell motorboats. As tax discussions often stir debate, stakeholders, including motorboat dealers and consumers, may vocalize concerns regarding the cumulative financial burden that such legislation could impose.
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To Amend The Revenue Stabilization Law; To Create Funds, To Repeal Funds, And To Make Transfers To And From Funds And Fund Accounts; And To Declare An Emergency.
To Amend The Law Concerning The Collection Of Sales And Use Tax On Motor Vehicles, Trailers, Semitrailers, And Motorboats, As Affirmed By Referred Act 19 Of 1958; And To Subject Certain Used Motorboats To A Special Rate Of Tax.
To Amend The Law Concerning The Collection Of Sales And Use Tax On The Sale Of A New Or Used Motorboat; And To Provide For The Direct Payment Of Sales And Use Tax On A Motorboat Sold By A Motorboat Dealer.
To Amend The Law Concerning The Collection Of Sales And Use Tax On The Sale Of A New Or Used Motorboat; And To Provide For The Direct Payment Of Sales And Use Tax On A Motorboat Sold By A Motorboat Dealer.