04/23/2025
The Washington State Legislature added language into an existing transportation bill, SB 5801, to introduce a 10% luxury tax on new and used yacht sales, recreational vehicles and aircrafts over $500,000 (USD).
NMTA reports that “Looking back at the U.S. experience with a luxury tax on yachts in 1991, we see a stark warning. The 10% tax imposed led to a staggering 77% drop in yacht sales within just one year. This dramatic decline resulted in the loss of over 25,000 jobs across the boat manufacturing, maintenance, and marina industries as businesses struggled to cope with the decreased demand. The tax was ultimately repealed in 1993, as the economic damage became too pronounced to ignore.”
“Similarly, Canada’s recent luxury tax on boats, which began in September 2022, has also proven detrimental. Boating BC surveyed dealers and manufacturers regarding the impacts resulting from the federal government’s luxury tax. The yearlong survey shows a loss of more than $211 million (CAD) and an approximately 85% decrease in new boat sales.”
Nordhavn Northwest recognizes that the marine industry supplies jobs to all income brackets. Every boat creates a revenue stream in the areas lived or visited as they seek service, provisioning and so much more. This proposed luxury tax has been attempted before and proven to cause devastating effects on the health of the maritime community and those who rely on this industry to support their families.
https://www.boatinternational.com/boat-pro/news/washington-state-us-luxury-tax-yachts-sb5801
https://waggonerguide.com/nmta-says-vote-no-on-sb-5801/
https://mailchi.mp/60b7838d5b48/nmta-waterlife-newsletter-march-9297836?e=5ae88ede4c
