New Jersey governor Chris Christie signed a bill in December that reduces the state’s tax on boat sales to seven percent and caps the total tax at $20,000.
Those in opposition of the bill said the tax break helps the wealthy at the expense of everyone else in New Jersey. The Press of Atlantic City reports the change is expected to cost New Jersey between $8 million and $12 million in annual sales taxes.
Although there has been a drop in boat registrations in recent years, the National Marine Manufacturers Association (NMMA) reports that boat sales in the U.S. have risen 12 percent between 2013 and 2014.