Sales tax cap on boat repairs passes in Florida June 18, 2015
FORT LAUDERDALE — The Marine Industries Association of South Florida is pleased to report that the Florida Legislature and Governor Rick Scott are incentivizing boaters to have repairs done in the state with the new tax cut package passed today.
Signed into law by Governor Scott, the $60,000 tax cap eliminates sales taxes on boat repairs that cost more than $1 million, starting July 1, 2015. With marine-related competition for the repair and refitting of vessels now heating up in the Caribbean, Latin America and Europe, MIASF has taken an active role to ensure that South Florida remains the global marine hub.
“This tax cap is a benefit for the state that will allow Florida’s nation-leading marine industry to attract and retain vessels for repair and refit revenue. South Florida is the international marine hub to the world, employing 136,000 people in the marine industry,” said Phil Purcell, executive director of MIASF.
“The industry’s skilled craftsmen and its proximity to the Caribbean, Latin America and Europe have resulted in increased demand for repairs to vessels of all sizes,” Purcell said. We will now be able to compete with states along the eastern seaboard and international yards. This tax cap will enable us to leverage this opportunity for additional jobs and economic growth.”
The proposal is modeled in part on the sales tax cap on purchases that capped yacht sales and use tax at $18,000 that MIASF partnered with the Florida Yacht Brokers Association to pass in 2010. MIASF was assisted by advocates including Floridian Partners, Sen. Jack Latvala and Sen. Joseph Abruzzo to spread the word on the importance of protecting the current positive marine environment in the state.
Stay tuned for more details from the Department of Revenue on how the cap will be implemented and additional information.