New York Gov. Andrew Cuomo’s $150 billion state budget includes a tax incentive for anyone buying a vessel valued at more than $230,000, which would put the state on par with Florida’s tax laws.
Buyers would not have to pay sales tax beyond that amount, The New York Times reported.
Senior New York lawmakers reached a budget deal Sunday night and the legislature has started voting on bills that allocate money for fundamentals, including schools and health care.
Jeff Strong, the president of Strong’s Marine on Long Island, said the credit would create jobs and tax revenue in New York with money that is now flowing out of the state.
“It is a big deal because we have so many people with expensive boats that use them in New York and Florida,” Strong told the newspaper. “Right now they buy the boats, and pay the tax, in Florida, and then bring them up here.”
The tax, he said, puts the state roughly on a par with Florida in how it taxes yacht purchases. That state caps its tax on boats at $18,000.
A Florida Yacht Brokers Association and Marine Industries Association of South Florida study said Florida took in nearly 10 times as much sales tax revenue on sales of tax-capped boats as the state projected in its first year of the Maritime Full Employment Act.