March 28, 2011 -- The Independent Marine Business Association (IMBA), representing a wide range of Rhode Island companies with specialized skill sets and expertise in the marine industry, opposes any and all taxes on boating in Rhode Island. The marine industry is an essential segment of the State’s economy, and imposing taxes on any aspect of boating, whether on boat sales, service, slips or storage space, would be devastating.
Since the recent economic downturn, the marine industry nationwide has been among the hardest hit due to consumers reigning in their discretionary income, and Rhode Island is no exception. Many boaters have been forced to cut their boating budgets, or sell their boats (or lose them) and give up boating completely. Many marine businesses in Rhode Island suffered severe revenue losses and were forced to cut jobs.
The IMBA believes that adding taxes to an already struggling industry is absolutely not going to help it recover. More and more boaters will opt out of having work completed by a marine service business, or decide they can no longer afford their favorite pastime. Even more jobs will be cut than already have been, and more businesses will be closing their doors. With fewer customers at the marinas and boat yards, other related businesses will suffer, such as the nearby grocer, restaurant, and liquor store.
“Tax free boating in Rhode Island” has been a catch phrase used to market Rhode Island to boaters, helping the industry grow, since the repeal of the tax exemptions on boating in 1993. This has been crucial in allowing the marine economy to flourish, as a significant number of our boaters live out of state but do their boating in Rhode Island. International yacht owners come to Rhode Island to have major refits for this exact reason. We cannot afford to lose these customers. Reversing the tax exemptions would most definitely have a negative impact on the industry.
Finally we are concerned that the State will not realize the amount of revenue it may be anticipating from these taxes as it chases boaters out of Rhode Island, or out of boating. The losses the marine industry experiences will be far greater than the tax revenue collected, and will have a reverse impact on the economy.
With its 400 miles of coastline, including beautiful Narragansett Bay, Rhode Island has become a destination for boaters from around the world. Boat building and boating for sport and leisure are long-standing traditions in Rhode Island which we cannot afford to lose. Implementing any taxes on boating will drive much-needed revenue out of our State and could destroy a beloved Rhode Island institution.
The IMBA respectfully urges our leaders at the State House to keep Rhode Island a “tax free boating state.”
The Independent Marine Business Association (IMBA) is a non-profit corporation founded in the state of Rhode Island, USA. Its mission is: to promote independent marine service businesses that strive to maintain a high degree of standards through education and training; to develop best management practices that benefit the industry and protect the interests of member businesses and the boaters we serve; to encourage environmental stewardship by the Membership and the Association; to do such lawful acts as may be deemed beneficial to those engaged in the boat repair and service business; and to promote legislation favorable to the marine repair industry, and to oppose any and all adverse legislation.
Independent Marine Business Association
