Luxury Tax on Boats and Yachts in Maryland?

Maryland lawmakers are considering a bill that would impose a 1% “luxury surcharge” on certain items, including boats and yachts costing more than $35,000. The bill also would tax cars, motorcycles and planes costing more than that amount.

The tax on motor vehicles, boats, and airplanes sold for a taxable price of more than $90,000 would be $550, plus 2% of the amount above $90,000.

The bill, which would impose a luxury tax on most retail sales of items valued above $5,000, was introduced last month in the House of Delegates. It was referred to the Rules and Executive Nominations Committee.

If passed, the bill will take effect July 1, 2012.

According to a petition against the proposal on Change.org, the bill would “effectively force boaters and would-be buyers of boats to seek another venue in which to enjoy, keep and purchase their boats to avoid these surcharges.

“Nearby Virginia and Delaware will benefit, while Maryland yacht brokers, dealers, boatyards, marinas and peripheral marine businesses will be negatively impacted or forced out of business,” the petition states.

SOURCE: Trade Only