RI Rep. Morrison: Sales tax exemption for boats integral to success of state’s marine industry

The State Column | The State Column | Tuesday, March 01, 2011


In response to legislation that been has introduced to repeal the sales-tax exemption for boats, Rep. Richard P. Morrison (D-Dist. 68, Bristol, Warren) is stressing the importance of the boat building industry to Rhode Island’s economy and pledging to fight against any attempts to repeal the exemption.

A bill recently introduced in the Senate would extend the state sales tax to the sale, storage and use of new and used boats.

Representative Morrison, whose district is home to several boat-building companies and marinas, said the proposed legislation would affect not only boat builders, but all marine businesses and every Rhode Islander.

“This bill destroys our state’s boat building and servicing industries, and it burdens every Rhode Island boat owner who enjoys our great waters. Also, there are countless boats kept in Rhode Island by out-of-state owners precisely because of the tax exemption. These owners support the local marinas where they dock and store their boats as well as all of the various suppliers and services that surround the industry locally,” he said. “Since the repeal of the sales tax for boats in 1992, millions of dollars have been pumped back into the state’s economy. In these difficult fiscal times, we cannot afford to throw away such a significant economic gain.”



Since 1992, the East Bay Economic Initiative (EBEI) and the Rhode Island Marine Trades Association (RIMTA) release a semi-annual report on the impact of the sales tax repeal. The results are from a survey sample of 29 diverse marine companies in Rhode Island.

According to the most recent statistics, published in 2007, job growth has exceeded 55 percent from 1992 to 2005. The repeal of the sales tax, over 13 years, added $130 billion to Rhode Island’s economy.

“The statistics speak for themselves,” said Representative Morrison. “Clearly, the repeal of the sales tax in July of 1992 has sparked significant growth in employment and tax base in the boating industry.”

Morrison said he has met with General Assembly leadership to convey the importance of the sales tax exemption to the marine industry in Rhode Island and will make it a priority to ensure the exemption remains intact.

In Rhode Island, there are over 2,300 marine-related businesses that employ over 6,600 people.