New York caps off sales tax on yachts to go one on one with Florida

New York is cresting its sales tax on yachts in a bid to lure back business from Florida and other locales that charge less. But the yacht brokers of Florida said that they are not really worried that the move would cost Sunshine State much.

This is because Florida has a grand lead over New York in yacht sales, as well as many New Yorkers bring their boats to Florida for the winter. So, even if New York picks up some extra sales, those owners probably will spend money at Florida’s marinas, repair yards and other services.

Jeff Erdmann, the chairman of Florida Yacht Brokers Association that pushed Florida’s tax cut on yacht sales in the year 2010, told that they would not lose many sales to New York in the grand scheme. They still have the better weather.

New York capped their sales taxes on boats as part of their recently-approved state budget. Beginning from 1st June, buyers of yachts in Empire State would pay tax on only the 1st US$ 230000 of the buy price or in most nations, 8.25% or US$ 18975.

The measure has attracts political fire as a bring out to the rich, but Chris Squeri, the executive director of New York Marine Trades Association, told that the measure just targets to level the playing field along with Florida as well as other regions so New York could have some tax, instead of nothing at all.