NJ Sales Tax Break A Big Deal At Atlantic City Boat Show
ATLANTIC CITY, N.J., (CBS) -- Just in time for this week's Boat Show in Atlantic City. New Jersey's sales tax incentive for boat sales is in effect. And it can save people in the market for a boat a lot of money.
Buy a boat in the Garden State, and your sales tax is cut in half. And you'll pay no more than $20,000 altogether to New Jersey. Do the math. A new $100,000 boat could come with a $3,500 discount, thanks to Trenton.
Boat salesmen like Jay Duggan at Pier 47 Marina, based in Wildwood, are excited. "I think people will start looking more. Come in. Start price shopping. See what the best deals are. See how the tax can go through and help them out," Duggan told KYW Newsradio.
The cut was approved, in part, to deal with competition from neighboring states along the east coast. The number of registered boats in New Jersey dropped some 40 percent over the last 15 years because of competition, the recession and the damage from Hurricane Sandy.
Duggan says the effect of the change won't be evident immediately. But it's costing the state of New Jersey about $8 million a year in tax revenue.