NMTA testifies in Olympia on behalf of members

Last night NMTA President George Harris, along with other members of the boating community, testified in front of the Senate Ways & Means Committee in defense of the industry.

Early yesterday the Democratic Caucus released a string of proposals to increase revenue for the Washington State General Fund. The tax package proposes to raise an additional $918 million in the remaining year of the current biennium and more than $2.0 million in the 2011-2013 biennium. This represents about a 50 percent increase in the size of the tax increases in the current biennium over the proposal advanced by Governor Gregoire last week ($900 million vs. $605 million).

The Senate Democratic Caucus tax proposal drops the proposed taxes on candy, gum, soda pop, bottled water and pop syrup.

In place of those taxes, there is an expanded list of “tax loopholes” proposed to be closed, including many we have already seen discussed, but also eliminating the current trade-in allowance on vehicles and boats, repeals of a preferential rate of prescription drug sales, expanded corporate officer liability for unpaid business and occupation taxes.

In addition, the Senate proposal increases the state sales tax by 0.3 percent for a three-period beginning this summer. The legislation will include a “working families tax exemption” refund, but there are no details on the refund.

Finally, the proposal includes the previously discussed proposals for addressing economic nexus and tax avoidance.

The business community was out in force at yesterday's hearing. NMTA, the Northwest Yacht Brokers, and Recreational Boating Association of Washington all spoke out in opposition to eliminating the trade-in allowance on boats. This proposal would have a terrible affect on boat sales. One auto dealer at the hearing estimated in the increased cost to consumers at $1,000 per purchase!

To contact your legislators today and speak out against the proposal, visit www.leg.wa.gov and click "Find Your District". You can also call the legislative hotline, 1-800-562-6000.

Boating Industry Tracks 2010 Legislative Session

As most of you are aware, the 60-day 2010 Washington State Legislative Session began on Monday. NMTA's lobbyist, Cliff Webster, will reside in Olympia for the duration of the session and will track and comment on legislation on behalf of our 550 members in Washington State.

Yesterday, Governor Gregoire delivered her State of the State address. To read the details of her delivery you can see yesterday's Seattle Times article, however because the session is all about balancing the state budget through spending cuts, new taxes or an additional infusion of federal funds, these three sentences from the article summarize her speech on these matters:

1) She wants a “responsible, balanced approach of painful cuts and new revenues” to close the state’s $2.6 billion budget gap.

2) She will deliver a budget proposal to the legislature later that relies on $750 million in new revenue and $1 billion in cuts.

3) The new revenue will come from a mix of federal aid and (unspecified) new taxes.

This all means that the NMTA government affairs team will have to work diligently to see that no new taxes are raised on the backs of our businesses or the thousands of boaters who enjoy this pasttime. (The industry is suffering enough under economic duress.) As the boating industry in 2008 was responsible for over 6,500 jobs and $23.9 million in sales tax revenue, we hope to ensure that the State Legislature will tread delicately when it comes to recreational boating.