Refitting a yacht in the Florida just became more attractive after legislation was passed to cap the tax on yacht repairs at $60,000. This means that any yacht repair work that costs more than $1 million will not be taxed more than $60,000.
Refit savings: Florida passes yacht repair tax cut
While some legislators, such as Democratic Senator Geraldine Thompson, are questioning this cut as only benefitting the “very wealthy”, others note the importance of the yacht repair tax cut in keeping jobs in Florida.
“[The yacht repair tax cut] is not about saving millionaires money,” said Senator Jack Latvala, a Republican from Clearwater, as reported by the Associated Press.
Latvala then cited the depressed economic conditions of Riviera Beach, Florida, a hub of yacht repair and the base of one of the largest yacht repair facilities in the state, Rybovich.
"One of [Riviera Beach’s] biggest industries is a company that does yacht repairs," Latvala said of Rybovich. "It's about building up an industry... it's about jobs."
According to the trade organisation The Marine Industries of South Florida, the yachting industry has an economic output of $11.5 billion in the region of the South Florida alone, where Rybovich is located.
The yacht repair tax cut comes as a small part of a much wider bill that was passed Monday morning by the House and Senate.
This news comes days after a tax break for New Jersey yacht buyers was announced that will limit tax collected by the state on boat purchases to $20,000.