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Texas Marine Industry Bill Passing is Great News for the Boating Industry and Texas Economy

September 1st, 2019

prestige520 Texas Marine Industry Bill Passing is Great News for the Boating Industry and Texas Economy

HB 4032 caps the sales and uses tax on boats at $18,750 and makes Texas competitive with other Coastal states, like Florida.

By Rick Clapp

The recent passing of the Texas Marine Industry Bill has been approved as HB 4032. It was successfully filed and signed by Texas Govenor Abbott. The passing of this marine bill will most positively impact the Clear Lake Area and Bay Area Houston Marine Region. We will now have a strong opportunity to compete with the state of Florida and other coastal states for large yachts, sailboats, and high priced center console fishing boat sales.

“The state of Texas can now return to its place among the Nation’s leaders in yacht and boating sales, and employment related to the marine industry,” said John Preston, president of the Texas Marine Industry Coalition (TMIC) and owner of the Boater’s Directory.

This bill will take effect Sept. 1, 2019 and shall effectively make the Texas marine industry competitive with other coastal states with lower tax policies for boats. The bill sets a limit on the 6.25% sales and uses tax for all taxable recreational vessels at $18,750, effectively matching the $18,000 tax that Florida enacted in 2010. The bill contains an additional provision to allow boats for use outside of Texas to temporarily remain in the state to utilize Texas marine service companies for refit and repairs.

There is also a provision to establish a fee permit system for out-of-state registered vessels if returning to or visiting Texas waters for temporary periods of time and spend money in our coastal communities. The intent and effect of each measure of the bill is to eliminate the incentives other states have been providing for large boat buyers and keep business in Texas. The bottom line is that the boat sales tax cap and additional provisions of HB 4032 will provide more boats, more boating and more business for Texas.

The bill took a tremendous amount of time, money, effort and planning, as well as an intense lobbying effort in Austin. It was heavily supported by the members of the marine industry and local communities.

“We want to thank all our members and supporters who responded to our call for action. They wrote letters and called legislators, contributed money, and made many trips to Austin. Their efforts paid off,” said Jay Dee Jackson, Treasurer of TMIC and Sales Manager for Galati Yacht Sales. “Our well-organized grass roots effort was extremely effective and we achieved the goal we sought.”

There are so many people to thank that were instrumental in passing the bill, such as Greg and Glenda Allison, John Preston, Jay Dee Jackson, Senator Larry Taylor, Representative Greg Bonnen, Genie Morrison, Dennis Paul, Ed Thompson, Todd Hunter, and Senator Louis Kolkhorst and many other rank and file members of TMIC.

Finally we all want to thank TMIC and all the local marine service people that helped pass the Texas Marine Industry Bill as it will have a major economic impact for years to come. A celebratory party is set for Nov. 9 at Lakewood Yacht Club from 6-10 p.m. For more information call 281-474-5875.

For more bill information feel free to contact the Texas Legislative committee

John Preston 832-788-2860

John Bowen 832-226-2881

Randy Bright 713-816-2165

Jay Dee Jackson 941-720-5081

tmicolation@gmail.com

www.tmicoalition.org

HB 4032 Texas Marine Industry Bill Is Approved

June 29th, 2019

yachting HB 4032 Texas Marine Industry Bill Is Approved

Sales tax for recreational boats in Texas has been capped to $18,750.

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 – tmicoalition@gmail.com or visit the TMIC website; www.tmicoalition.org

About TMIC

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.