More bang for your buck
With a new tax cap implemented on refits completed in the state of Florida, The Superyacht Owner spoke with industry leaders across the pond for the effect this will have on owners and the industry completing works in the state.…
Sponsored by the Marine Industries Association of South Florida (MIASF),
the state of Florida passed legislature at the beginning of this month,
which will see a cap put on the first USD $60,000 of yacht refits and
repairs. Speaking to Executive Director, Phil Purcell of the MIASF, he
commented about the benefits such a cap will have on the industry and owners looking to do a refit in the state.
"South Florida's boat yards have geographic advantage due to our
proximity to the Caribbean, Latin America and being a jumping off point
to Europe, meaning we're well connected to complete works here."
Benefitting from a number of large facilities that are able to
accommodate the larger end of the market, the state will no longer need
to say goodbye to work due stringent tax laws. "We expect to see many
opportunities to grow as a result and see more careers made available
that make up our region's USD $11.5 billion industry" Purcell concluded.
President of Bradford Marine, Paul Engle shared to me that the new legislation will bring a flurry of new activity for the region, meaning further growth for the American market. "It is anticipated that we will gain some new customers from overseas, and new business from existing customers that will decide to complete larger projects in the state of Florida instead of returning to their home ports" he commented. "Substantial savings will be absorbed from the yacht owners choosing to do a refit in this part of the world now" he concluded.
The news comes following the 2011 decision to implement a sales tax cap in the state at USD $18,000. Cromwell Littlejohn, broker at Northop & Johnson explained the monumental impact this had on the industry. "We saw a tenfold increase in tax collected over the previous year, while creating an atmosphere that encouraged yachts to remain in the state rather than the previous norm of requiring many of the yachts purchased in Florida to depart the state, taking jobs and leaving a tremendous void in the berth where the economic footprint of a yacht once floated".
Adding meat to the bones of the industry, such data and proof of the economic impact that the industry continues to improve the name and image of yachting. As Littlejohn continues "early indicators suggest that the new legislation is working, with shipyards investing in more facilities, more equipment, and more workers". Sharing the need for the yacht industry to be seen for more than simply a playground for the ultra wealthy, Littlejohn hopes such tax incentives and their effects on local economy, will help to prove the value of the industry. "Yachts aren't simply an indulgence for the well-heeled, they are an economic engine that benefits Florida and its residents. Bringing more yachts in for refit means the knock-on effect is seen across the state, from the owners and crews visiting our restaurants, shopping in our stores, staying in our hotels and spending money for the duration of their visit."
The cost of the industry is nothing new to owners, but to those actively involved in the market, however, such press helps to elucidate the fact that this is a professional business that does more than its part to inject some money into the economy.
President of Bradford Marine, Paul Engle shared to me that the new legislation will bring a flurry of new activity for the region, meaning further growth for the American market. "It is anticipated that we will gain some new customers from overseas, and new business from existing customers that will decide to complete larger projects in the state of Florida instead of returning to their home ports" he commented. "Substantial savings will be absorbed from the yacht owners choosing to do a refit in this part of the world now" he concluded.
The news comes following the 2011 decision to implement a sales tax cap in the state at USD $18,000. Cromwell Littlejohn, broker at Northop & Johnson explained the monumental impact this had on the industry. "We saw a tenfold increase in tax collected over the previous year, while creating an atmosphere that encouraged yachts to remain in the state rather than the previous norm of requiring many of the yachts purchased in Florida to depart the state, taking jobs and leaving a tremendous void in the berth where the economic footprint of a yacht once floated".
Adding meat to the bones of the industry, such data and proof of the economic impact that the industry continues to improve the name and image of yachting. As Littlejohn continues "early indicators suggest that the new legislation is working, with shipyards investing in more facilities, more equipment, and more workers". Sharing the need for the yacht industry to be seen for more than simply a playground for the ultra wealthy, Littlejohn hopes such tax incentives and their effects on local economy, will help to prove the value of the industry. "Yachts aren't simply an indulgence for the well-heeled, they are an economic engine that benefits Florida and its residents. Bringing more yachts in for refit means the knock-on effect is seen across the state, from the owners and crews visiting our restaurants, shopping in our stores, staying in our hotels and spending money for the duration of their visit."
The cost of the industry is nothing new to owners, but to those actively involved in the market, however, such press helps to elucidate the fact that this is a professional business that does more than its part to inject some money into the economy.
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