CHICAGO, Ill. — The government's new stimulus package
includes deductions for sales tax paid on the purchase
of vehicles like cars and RVs, but an MRAA Dealer Alert
sent Monday served as a reminder that a federal
deduction for recreational boats has existed since 2004.
On Oct. 22, 2004, President Bush signed into law the
American Jobs Creation Act, which included a special
federal deduction for state and local sales tax paid on
the purchase of recreational boats. The law allows an
individual claiming itemized deductions to include
general sales tax or, in the case of a major purchase
like a boat, the entire amount of the tax paid.
The law allowing the sales tax deduction has been
renewed several times by Congress with the most recent
authorization set to expire in 2010, according to the
MRAA.
"MRAA has informed boat dealers about this very
important tax savings several times over the past few
years, because we believe it is an important factor in
the selling process. It is even more important today to
sell this income savings in these very hard times," said
MRAA Chairman Ed Lofgren in the Dealer Alert.
In addition to the sales tax reminder, the MRAA sent out
a second alert Monday asking dealers to write Congress
to share personal stories illustrating the need for
government intervention to loosen credit markets.
"It is clear to MRAA that dealers are losing sales due
to the credit crunch contributing to the severe downturn
in new boat sales," the alert stated.
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