NJ SALES TAX CAP ON BOAT SALES PASSES SENATE

Legislation sponsored by Senator Jeff Van Drew and Senator Jim Whelan that would promote economic activity in the state’s shore regions by imposing a limit to the state sales and use tax on non-commercial boats was approved Thursday by the Senate. The bill would provide a maximum limit of $20,000 on the amount of sales or use tax that can be imposed and collected on new boat sales and uses of non-commercial boats including motorboats, sailboats, yachts and cruisers. Currently, New Jersey charges seven percent sales tax on non-commercial boats and vessels purchased in State, and residents who buy boats elsewhere are subject to the tax once the boat is used or registered here. Since 2000, New Jersey has seen a significant decrease in the number of registered boats in the state.