Luxury Tax On Yachts

luxury tax on yachts new luxury tax trimming boat sales the luxury tax which began jan 1 is applied to that part of a new boats sale price over 100000 the national marine manufacturers association the industry trade group estimates that from 10000 to 15000 boats nationally will be subject to the tax, back then congress told us that the luxury tax on boats aircraft and jewelry would raise 31 million in revenue a year instead the tax destroyed 330 jobs in jewelry manufacturing and 1470 in , the culprit boat industry officials say a 10percent federal luxury tax that went into effect in january on new pleasure boats that cost more than 100000, this tax was levied on material goods such as watches expensive furs boats yachts private jet planes jewelry and expensive cars congress enacted a 10 percent luxury surcharge tax on boats over 100000 cars over 30000 aircraft over 250000 and furs and jewelry over 10000

Large Catamarans For Sale News

there is currently no federal tax on boats although there was one back in the days of the luxury tax if you document your boat federally then you will pay an application fee currently 133 for newly documented vessels for the certificate of documentation there is a small fee currently 26 at renewal which must be done annually, a tax burden raise revenue from the wealthy in 1990 congress passed a new luxury tax on items such as yachts private airplanes furs jewelry and expensive cars

the luxury tax on yachts requires boat buyers to pay a 10 extra federal sales tax on that part of the purchase over 100000 but boat sales dropped sharply and revenues from the levy have been far smaller than expected, the yacht costs 2995000 but thanks to the current luxury tax that kicks in at 100000 you have to fork over another 289500 rich people arent happy about paying this extra money, a federal luxury tax on new boats was approved on sept 30 1990 anyone who purchased a brand new recreational boat worth 100000 or more after that date would be assessed a 10 percent federal tax in addition to local and state taxes and fees, the tax on motor vehicles boats and airplanes sold for a taxable price of more than 90000 would be 550 plus 2 of the amount above 90000 the bill which would impose a luxury tax on most retail sales of items valued above 5000 was introduced last month in the house of delegates