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Keith McCord ReportingThe warm weather is here, and for boat owners that means it's time to get on the water! It also means time to pay the registration fees.
A lot of folks are getting their boating tax and license notices in the mail now. And many are discovering that the amount they have to pay this year is different than last year-- some bills went up, others down.
Boat dealers are seeing an increase in customers. And if you drive by a lake or reservoir, you'll see more and more boats on the water now.
The boating season is upon us. But some boat owners have discovered a surprise when they received their property tax renewal forms this year!
Casey Robertson, Sales Mgr., Robertson Marine: "The majority of people really have enjoyed it because they're paying a lot less. There are instances where people's taxes came up to 50 dollars or 100 dollars."
The legislature changed the way that boat taxes are calculated. In the past, the tax was based on the value of the vessel; now, the fees are calculated using a formula that considers the age and length of the boat.
Casey Robertson, Sales Mgr., Robertson Marine: "Yeah, it wasn't really fair to everybody out there. I believe this way is a lot more fair for everyone."
The new boat fees are set up in categories based on length:
- Under 15 feet
- Between 15 and 19 feet
- 19 to 23
- 23 to 27
- Over 31 feet
Each category has a range of fees based on age. The newer the boat, and the bigger the boat, the higher the fee. Casey Robertson/ Sales Mgr. Robertson Marine: "Anything over 31 feet will be 'value based' like the old way. So when you start getting up into the house boats and the luxury items, they're still going to be the same way."
So, why the change? Because of inconsistencies in the way boat values were previously calculated by the DMV.
Casey Robertson, Sales Mgr. Robertson Marine: "Well, a lot if it was the confusion with the outboard motor. Because they would value it separately. Sometimes they would value it with the boat. A lot of times it wasn't valued with the boat, so people's property taxes were either too high or too low."
So if your taxes went up, most likely your boat was undervalued using the old system.
Boat dealers say they aren't hearing many complaints about the new tax structure, but they are hearing some grumbling about higher gasoline prices!
