Weekly 5: Boaters could face higher taxes in Ohio, Michigan

 

The BI Weekly 5 is a collection of tips, news and data affecting the boating industry this week. Be sure to look for the BI Weekly 5 every Tuesday on BoatingIndustry.com.

1. Boaters could face higher taxes in Ohio, Michigan

Separate proposals could result in a bigger tax impact for some Midwest boaters.

In Michigan, Proposal 1, a measure on the May 5 ballot in the state, would result in higher gas taxes for boaters.

The proposal calls for an increase in the state’s sales and gas taxes, which would be a double whammy for boaters, because fuel for boats (unlike fuel for automobiles) is not exempted from the state’s sales tax.

In Ohio, the state budget proposed by Gov. John Kasich would, in effect, raise the price of buying a new boat (or automobile) when trading in an old one.

Under current state law, the taxable sales price of a new car or boat is reduced by the amount given to the buyer for trading in a car or boat. The budget proposal would reduce that discount by 50 percent of the value of the trade in. So, for example, a person trading in a $20,000 boat on a new $50,000 boat would pay tax on $30,000 under current law, but on $40,000 under the proposal.

2. Outboard engine shipments up in March

U.S. outboard engine wholesale shipments were up 5.6 percent (rolling 12 months, year over year) in March for the National Marine Manufacturers Association control group of manufacturers representing 95 percent of the market. 

3. Study: Corn taking over grasslands for ethanol

In order to meet the growing demand for biofuels, corn and other crops are steadily creeping into previously untouched grassland areas, a new study by the University of Wisconsin shows. 

According to the study, crops used to produce now use 1.6 million acres of previously undisturbed grasslands. These lands are what are known as “carbon sinks” and turning them into farmland emitted an estimated amount of carbon dioxide equivalent to 23 coal-fired power plants operating for a year, the authors said.

4. Using Twitter to power your sales

Popular MDCE speaker Don Cooper has some advice on how to make the most of Twitter in your sales efforts.

5. 8 small business tax errors to avoid

With tax day looming, the Small Business Administration has eight common small business mistakes.

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3 Comments

  1. As if our industry doesn’t have enough problems, now Ohio is proposing to cut the trade in value under the sales tax formula. That ought to spur new boat sales! What’s next, ban boating?

    1. Almost everyday I pause to think how amazing it is that, having grown-up in the 50’s and 60’s, that I’m actually still alive (and well) . I say that because during those years we had little – if any – government intervention. I shudder to think what should have happened to my poor defenseless ears being tortured by the noise from the baseball cards clattering on my Schwinn spokes – where was my ear protection when I needed it most??? – and it’s amazing that my head is still intact and functioning whole without the proper helmet for every freakin’ sport under the sun….and you know I could go on…:)

      And now the “boys club” (aka g-men) is playing the $$ game with our industry – AGAIN!! I’m in NY and here the sales tax is based on the sell price. In the scenario presented 50K – 20K = 30K x .08 = 2400.00. Just plain old basic math….I feel bad for you Ohio…keep the faith guys…Cheers!

  2. Regarding Michigan: As of today, the current wind is blowing to a ‘no’ vote on the sales tax proposition (with a ‘yes’ vote, the proposition will raise the state sales tax by 1%, shift some other funding and increase some fuel taxes along the way — all designed to improve Michigan’s roads).
    We will see on May 5th…

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