News Summary
Rhode Island’s boating and fishing community is opposing House Bill H-6256, which proposes eliminating tax exemptions for motorboats. Critics argue that this tax increase could majorly burden working families and local businesses. Proponents highlight concerns over out-of-state purchases affecting tax revenue. The Rhode Island House Finance Committee has decided to hold the bill for further evaluation after extensive feedback from stakeholders. The local fishing community continues to thrive, even as the legislation poses potential risks to the vibrant boating and fishing economy in the state.
Rhode Island – The boating and fishing community in Rhode Island is vehemently opposing House Bill H-6256, which aims to eliminate the sales, property, and use tax exemption on motorboats. This opposition came to light during a recent meeting of the House Finance Committee on May 5, where stakeholders expressed their concerns regarding the implications of the proposed tax on local businesses and families.
Sponsored by Representative John Lombardi, a Democrat from Providence, the bill is designed to address an issue where high-priced boats are purchased by out-of-state residents without incurring sales tax, eroding the tax base. Lombardi underscored that his legislation is focused not solely on luxury yachts, but on all 32,000 boats registered in Rhode Island. He raised the concern that some motorboats being bought locally are priced as high as $5 million and go untaxed due to their out-of-state owners.
However, critics of the bill argue that the new tax structure would disproportionately impact working families and small businesses. According to the National Marine Manufacturers Association, approximately 75% of boats registered in Rhode Island are owned by individuals earning less than $100,000 per year. Therefore, the proposed tax changes could place a significant financial burden on a large section of the boating community.
Rick Bellavance, the president of the Rhode Island Charter and Party Boat Association, pointed out that the boating industry in Rhode Island is already facing challenges, and the introduction of new taxes could further complicate matters for small enterprises. The tourism and charter fishing sectors, which heavily rely on the boating industry, may suffer as a result of the increased costs, potentially leading to a decline in visitors and boaters drawn to the state.
Furthermore, the Rhode Island Saltwater Anglers Association asserted that recreational fishing contributes $419 million to the state’s economy each year. Many members of this association are boat owners or partake in fishing activities with friends who own boats, highlighting the importance of preserving favorable conditions for maritime activities in Rhode Island.
Bellavance also raised concerns regarding the possible perception of Rhode Island as a boating- and fishing-friendly state. The introduction of taxes on motorboats might deter potential boaters and tourists, negatively influencing the vibrancy of these activities in the state.
The Rhode Island Marine Trades Association has reported that the marine trades sector helps sustain over 13,300 jobs, contributing around $2.65 billion in gross sales to the state. The ongoing discussion surrounding the proposed tax legislation is critical, given its potential impact on not just the boating community, but also the wider economy that benefits from marine trades.
In light of the opposition raised during the hearing, the House Committee on Finance has decided to hold the bill for further study. This pause allows for a comprehensive evaluation of the implications of the legislation, alongside other bills discussed during the session. Stakeholders are closely monitoring the situation as the legislative process evolves.
In addition to the legislative developments, local fishing reports noted a healthy catch of holdover striped bass, with anglers successfully landing fish sizes ranging from 28 inches to over 30 inches. Fishing activity at local bait and tackle shops indicated participation in various areas, such as Conimicut Point and the Providence River, where anglers reported varying degrees of success.
The tautog fishing scene has also been promising, with multiple successful reports from both shore and boat anglers. Meanwhile, freshwater trout fishing remains positive due to recent trout stocking in water bodies across Rhode Island and Massachusetts.
The ongoing discussions about the proposed motorboat tax, along with the current buoyant fishing conditions, are under active observation as the legislative process unfolds, emphasizing the need to balance fiscal policies with a thriving boating and fishing community.
Deeper Dive: News & Info About This Topic
- Providence Journal: Capt. Dave Monti argues against proposed Rhode Island sales tax on boats
- Wikipedia
- WPRI: RI lawmakers consider imposing new tax on boats
- Google Search: Rhode Island boat tax
- Warwick Online: Say No to Boat Tax
- Encyclopedia Britannica: Taxation
- Law360: RI House bill would end boat sales tax exemption
- Google News: Boat tax news
- Rhode Island Current: R.I. commerce awards $5.4M in tax incentives for new submarine manufacturing plant in Quonset
