New Jersey cuts new-boat sales tax by 50 percent
New Jersey has passed a law that will cut the amount of taxes paid on new boats in half. The state’s marine industry celebrated Wednesday after Gov. Chris Christie signed a bill that they say aligns the state with neighboring states’ tax laws.
The New Jersey sales tax of 7 percent will be reduced after Feb. 1 by 50 percent for every boat sold or berthed in the state. This effectively makes the sales and use tax 3.5 percent across the board, regardless of the price of the boat, with a cap of $20,000. The bill also includes a 30-day grace period for use tax imposition.
Advocates have said this move helps New Jersey compete with states such as Florida, New York and Maryland, which also have modified tax laws and have said the resulting sales boosted local economies.
Those who purchased boats in Florida and paid the cap of $18,000 will only be liable for $2,000 upon returning to New Jersey.