ISSUE OVERVIEW: You may have heard about the proposed “luxury tax” on recreational watercraft, RVs, airplanes, and automobiles. This tax would add an extra 10% charge on purchase prices exceeding $500K for boats, RVs, and planes. Automobiles over $100K would also face a similar tax on the value above that threshold.
We are specifically concerned about the luxury tax on vessels. This proposal is part of a much larger bill, Senate Bill 5801, which is linked to a new transportation spending package. On pages 21-22, Sections 17 & 18, the bill outlines the luxury tax proposal.
CALL TO ACTION: We need you to stand up against this misguided Senate luxury tax on boats. Our coalition partners have co-signed a letter with compelling arguments against the tax, which you can review HERE.
It is crucial that we voice our concerns directly to key members of the Legislature and the Governor’s office, including:
- Your local representatives: Find Your Senator/Representatives HERE
- Rep. Jake Fey, (D – Tacoma), House Transportation Committee Chair: 360-786-7974
- Rep. Julia Reed, (D – Seattle), House Transportation Committee Vice Chair & Maritime Caucus Chair: 360-786-7814
- Rep. Adam Bernbaum, (D – Olympic Peninsula): 360-786-7916
- Sen. Marko Liias, (D – Edmonds) – Chair, Senate Transportation Committee: (360) 786-7640
- Sen. Curtis King, (R – Yakima) – Ranking, Senate Transportation Committee: (360) 786-7626
- Governor Bob Ferguson – D – Governor: (360) 902-4111
SUGGESTED MESSAGE: “Oppose the boat tax!” “This tax will severely impact working-class individuals — boat builders, boatyard workers, mechanics, service facilities, boat dealers and brokers, and the small businesses that form Washington’s vibrant recreational boating community. Although it may seem aimed at the wealthy, this tax will disproportionately affect our hardworking maritime professionals.”
OTHER KEY POINTS TO EMPHASIZE:
- This tax MAY bring in SOME revenue, but it WILL CERTAINLY kill good jobs.
- Luxury taxes have consistently failed to generate expected revenue and have been repealed elsewhere. For example, Canada saw collections 77% below projections due to reduced purchases and high administrative costs.
- This tax will harm blue-collar jobs throughout the maritime industry, at a time when we need more boat builders to support our ferry system
- Boats are the only asset subject to an annual excise tax through yearly registration, unlike cars, planes, and RVs. An additional tax will incentivize owners to purchase and register their boats in other states, resulting in a loss in sales and annual excise tax revenues.
- Funding road projects through boat taxes creates a disconnect between the tax and its intended purpose.
Your support is crucial to stopping this short-sighted proposal that threatens the livelihoods of many in our industry. Thank you for raising your voice!
