Virginia votes down yacht tax cap

Posted on February 23, 2011

Virginia lawmakers rejected a measure Tuesday that would have allowed localities to cap the personal property tax on yachts.

The measure had passed the state Senate 39-1, but was defeated 78-19 in the House of Delegates, the Virginian-Pilot newspaper reported.

"Tax breaks for yachts?" minority leader Ward Armstrong said. He called it the "John Kerry Relief Act" and the "second-dumbest idea" of this General Assembly session.

Delegate Dave Albo raised the specter of voters confronted by Stuart's proposed amendment at the polls.

"This thing, even if it passes this chamber, in my opinion, has absolutely no chance of ever passing at the polls," Albo said, urging delegates to "reject this bill and save the voters the hassle of having to vote no."

Proponents said the measure would lure back yacht owners who dock their boats out of state to avoid Virginia taxes. If the big boats come back, they said, it would generate marina jobs.



Comments
3 February, 23 2011, 12:40 PM By Greig Well this is good news for Maryland marinas!

2 February, 23 2011, 12:16 PM By Peter Minners Wow talk about uninformed legislators. Most Counties counts boats on 12/31 and those in the county on 12/31 pay tax those not in the county don't. All the boats move to MD or a county with no tax for winter storage and thus have offseason work done in MD. Way to be pro buisness VA.

1 February, 23 2011, 11:02 AM By Gregg Burdick Another example of "STATIC ANALYISIS". As proponents point out, "the measure would lure back yacht owners who dock their boats out of state to avoid Virginia taxes." More yachts paying a 'caped' tax with the overall direct result being more tax revenue received. A tax gain for Virginia in itself. Now add to that the additional jobs and supplies generated directly for marinas, service folks, fuel sales, etc. and the indirect economic boost to local resturants, etc.



Ward Armstrong needs to take a course in COMPREHENSIVE ANALYSIS, but I do like his comment refering to the "John Kerry Relief Act".



Full Article Below
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Va. House rejects tax break for boat owners


By Bill Sizemore
The Virginian-Pilot
February 23, 2011
RICHMOND

With an eye toward this fall's election, the House of Delegates overwhelmingly rejected a measure Tuesday that would have allowed a tax break for wealthy boat owners.

State Sen. Richard Stuart's proposed constitutional amendment, SJ344, would have allowed localities to cap the personal property tax on big, expensive boats.

The measure had passed the Senate 39-1. But it ran aground in the House after bipartisan warnings that it would enrage voters; it was defeated 78-19.

"Tax breaks for yachts?" Minority Leader Ward Armstrong, D-Henry County, said incredulously. He called it the "John Kerry Relief Act" and the "second-dumbest idea" of this General Assembly session.

The dumbest, he said, was the Senate's proposal for a new $300 million state office building just off Capitol Square, which drew ridicule in the House last week as a symbol of self-indulgence and excess.

Armstrong held up a sketch of the proposed building with a huge yacht docked next to it, suggesting the two would make a perfect pair.

Del. Dave Albo, R-Fairfax County, raised the specter of voters confronted by Stuart's proposed amendment at the polls.

"This thing, even if it passes this chamber, in my opinion, has absolutely no chance of ever passing at the polls," Albo said, urging delegates to "reject this bill and save the voters the hassle of having to vote no."

Proponents of the measure said it would lure back yacht owners who now dock their boats out of state to avoid Virginia taxes. If the big boats come back, they said, they would generate marina jobs.

Few delegates were swayed.

"It struck an iceberg and sank," Armstrong quipped afterward.