New Jersey Division of Taxation announces that boat purchases, boat rentals, and leases are eligible for 3.5% sales tax rate
Lake Hopatcong, N.J. – Looking for another reason to finally go boating this year? The New Jersey Division of Taxation announced today that the sales tax is reduced to 50% of the tax for every boat sold in New Jersey, as well as every boat rental and boat club membership purchased. This reduction effectively makes the sales tax 3.5% across the board for boats purchased, regardless of the price of the boat, with a sales tax cap of $20,000.
The new law, which was championed by the Marine Trades Association of New Jersey (MTA/NJ), went into effect on February 1, 2016. Ray Fernandez of Bridge Marina in Lake Hopatcong, who serves on the Board of Directors of the MTA/NJ, said he was delighted to hear that the new law successfully went into effect. “The Marine Trades Association of New Jersey put an incredible amount of time and energy into making this tax reduction a reality. This reduction in sales tax is not only a great boost for the overall marine economy in New Jersey, but it’s a great incentive and savings for our New Jersey boaters.” Fernandez went on to say that the sales tax reduction also includes boat rentals and boat leases, two services that Bridge Marina offers to local boaters in addition to traditional boat sales.
About the new law, MTA/NJ executive director, Melissa Danko said, “We are very thankful to everyone that helped make this happen, including our legislative sponsors Senator Van Drew and Assemblyman Andrzejczak, and especially Governor Christie for expanding the tax savings on all boats, signing this important legislation into law and supporting the boating industry in New Jersey. This new law will not only get more people out on the water enjoying our waterways but will ensure the future health and growth of the New Jersey recreational boating industry by increasing revenues and creating jobs.”
The Division of Taxation has released a list of Frequently Asked Questions to help clarify the implementation of the new law. Details can be found by visiting http://www.state.nj.us/treasury/taxation/faq-boatvessels.shtml.
About Bridge Marina, Inc.: Bridge Marina is Lake Hopatcong’s award-winning, boutique marina, offering dock slip memberships, daily boat rentals, the Lake’s only Boating Club, boat sales, service department, marine-grade fuel, and more. Bridge Marina has been recognized twice as the national “Marina of the Year” and is the only freshwater marina in the Garden State certified by the NJDEP as a “Clean Marina.” For more information, visit www.BridgeMarina.com or call (973) 663-1976
About the Marine Trades Association of New Jersey: The Marine Trades Association of New Jersey (MTA/NJ), established in 1972, is a non-profit organization dedicated to promoting, advancing and protecting the recreational marine industry and waterways in the State of New Jersey. The MTA/NJ represents over 300 marine related businesses in the Garden State. For more information, visit www.mtanj.org.