Sales Taxes: SB 6873

2 posts / 0 new

#1 February 25, 2010 - 11:14pm

webteam

---The following was posted at the request of Commodore Jennerich---

The Dear QCYC Members:

As reported by Chuck Gould at last evenings' membership meeting, the State Senate is proposing an added sales tax on the value of boats which are traded-in. It has been suggested by the RBAW lobbyist that boaters need to immediately generate emails/calls to Senators "in opposition to Part 24 of SB 6873". The RBAW lobbyist has already testified in opposition to Part 24 and your letters would support RBAW's position.

If you are so-inclined, the following is a suggested letter to send to your State Senator.

Ed Jennerich

Commodore

RE: Grave concerns and opposition to Part 24 of SB 6873 – asking that you, at the very least, exempt boats from this provision

Dear Senator __________:

I am writing to respectfully oppose – on my own behalf and on behalf of the Recreational Boating Association of Washington – the inclusion of Part 24 of Senate Bill 6873, which would make the value of all vehicle and vessel trade-ins subject to sales tax. We would urge you to remove this section entirely from the bill – or if that is not possible, to at least remove boats from its effects.

The recreational and commercial boating industry is a key part of Washington’s economic engine and boating is woven into the very fabric of who we are as a state – but this industry is hurting very badly right now. Just in terms of 2009 new boat sales compared to 2008, we are seeing a 33 percent decrease. We believe the Part 24 language in SB 6873 would similarly have a major dampening effect on the trade-in market.

The other reason we would urge that Part 24 be rejected is that the boating industry is doing its fair share for the State of Washington – and then some. Boaters already pay a watercraft excise tax that goes into the state’s general fund – no other types of vehicles, not cars, RVs, or trailers, is subject to that tax.

Additionally, under the strict letter of the law, boaters are entitled to a refund on the fuel they purchase. It is rarely taken and, instead, back in 1964 (Initiative 215) the people of Washington State passed an initiative to put unclaimed fuel tax refund monies into what became known as the “Recreation Resource Account” to provide a stream of revenue for improvements and repairs to boating infrastructure all over the state. The Recreation Resource Account, which had been generating just under $10 million a biennium, was ‘swept’ during the 2009 Session as one of the many actions taken by the Legislature to balance the Operating Budget.

Again, given how critical the boating industry is, how much it is hurting right now, and the fact that we are already paying more than our fair share into the state treasury, we would respectfully urge that you remove Part 24 from SB 6873, or at the very least exempt boaters from its impacts.

Thank you for your consideration,

_____________________________________

Senate Ways & Means Committee:

Committee Members

Senator

Room

Phone

Prentice, Margarita (D) Chair

JAC 303

(360) 786-7616

Fraser, Karen (D) Vice Chair, Capital Budget Chair

LEG 404