TMIC Legislative effort backed by grassroots support proves successful
In a major victory for Texas’ struggling marine industry, a long sought measure limiting the sales-use tax on boat purchases and providing for out of state vessels to utilize Texas waters, marinas and service companies is now poised to become law. After final passage in Texas House and Senate, and final filing by the Governor on June 14, 2019, HB 4032 will take effect on Sept. 1, effectively bringing Texas marine industry competitive balance with other coastal states that have had far lower boat tax policies.
The Texas Marine Industry Coalition (TMIC) was established barely one year ago to bring the Texas marine industry together and provide a strong platform and voice to promote and protect the interest of the industry and Texas’ boating communities. TMIC built a strong and effective coalition of members from the entire Texas coast and many inland boating communities. The group set the Texas Marine Jobs bill as its No. 1 legislative priority and spearheaded the efforts to pass this vitally important legislation.
“Thanks to a strong lobbying effort in Austin and incredible support from members of the marine industry and our communities, the Texas Marine Industry Jobs Bill is about to become law. The goal of TMIC and the result of this bill is to stem the flow of larger vessels, tax revenue, jobs and economic activity now going to Florida and other states due to those states proactive tax policies. The state of Texas can now return to its place among the nation’s leaders in boat sales and employment related to the marine industry,” said John Preston, President of TMIC and owner of The Boater’s Directory.
The Texas Marine Industry Jobs Bill sets a limit on the 6.25% sales and use tax for all taxable recreational vessels at $18,750, effectively matching the $18,000 tax cap that Florida enacted in 2010. It contains an additional provision to allow boats purchased for use outside of Texas to temporarily remain in the state to utilize Texas marine service companies for refit and repairs. Also included in the bill is a provision to establish a fee permit system for out-of-state registered vessels to return to or visit Texas waters for temporary periods of time and spend money in our communities to support the marine service industry. The intent and effect of each measure of the bill is to eliminate the incentives other states have been providing large boat buyers to purchase and/or take their boats and their business out of Texas. The boat sales tax cap and the additional provisions of HB 4032 will provide more boats, more boating and more business for Texas.
“We want to especially thank Senator Larry Taylor and Representative Ryan Guillen for their strong leadership as the primary bill authors. Thanks also to Representatives Greg Bonnen, Genie Morrison, Dennis Paul and Ed Thompson all of whom signed on as co-authors in the House. Representative Todd Hunter and Senator Lois Kolkhorst recognized the benefits of this legislation to their districts that are still recovering from Hurricane Harvey and provided tremendous advocacy for the Texas Marine Industry support to help achieve final passage of the bill,” said Randy Bright, TMIC Vice-President and broker with Galati Yacht Sales. He added “A special thanks to Joey Park and Billy Phenix for their hard work and effective professional representation in Austin. Getting this bill passed was no easy task and we are grateful that our legislators and the Governor were able to recognize the positive economic impact and the importance of it to the hard working men and women in the marine industry.
“The service sector of the Texas marine industry really needs this legislation”, said John Bowen, TMIC Vice President and owner of Elite Diesel Service. He added “The boats affected by this bill spend a great deal of money everywhere they go. We see the effects of this in our business as the Texas fleet has been shrinking thru attrition with replacement boats calling other states home. I’m excited that we can begin to return this business to Texas”
“We want to thank all our members and supporters who responded to our calls for action. They wrote letters and called legislators, gave money and made trips to Austin. Their efforts paid off for sure and proved that an organized grass roots effort is effective and can achieve great results,” said Jay Dee Jackson, Treasurer of TMIC and Texas Sales Manager for Galati Yacht Sales. He added, “We got such great support from so many people and organizations and we needed every bit of it. Thanks to that great collective effort, the Texas Marine Industry faces a brighter future today.”
For additional information or comments please contact any of the following members of the TMIC Legislative Committee: * John Preston 832/788-2860 * Randy Bright 713/816-2165 * John Bowen 832/226-2881 * Jay Dee Jackson 941/720-5081 *Email – firstname.lastname@example.org or visit the TMIC website; www.tmicoalition.org
The Texas Marine Industry Association (TMIC) was formed by a group marine industry professionals to bring together Texas marine businesses, their employees, vendors and customers to create a strong platform and voice to promote and protect the interests of the Texas Marine Industry. TMIC’s Mission: To build a strong, organized and effective association of Texas marine industry businesses, employees, vendors and their customers for the purpose of providing strong advocacy to protect, promote and support the recreational marine industry in Texas. To be a strong voice of representation at the federal, state and local level on issues of importance to our members and our industry. To provide value to our members as a source of information and communication on issue and events important to their businesses and our industry.