The jobs bill on the governor's desk and awaiting his signature at this hour will provide smoother sailing for luxury yacht buyers, but not so much for jet purchasers.
A late amendment to Senate Bill 1752 placed an $18,000 cap on the sales tax that applies to luxury boats. That means the tax paid on a $3 million vessel, or even a $10 million vessel, will be the same as the levy paid on a $300,000 boat.
The tax break -- courtesy of Rep. Will Weatherford, R-Wesley Chapel, and uber-lobbyist Ron Book, representing the Florida Yacht Brokers Association -- is intended to boost high-end boat sales in Florida.
These advocates say that higher sales volumes will boost state revenues in the long run.
Yet that less-is-more formula didn't fly when Rep. Ralph Poppell, R-Vero Beach, offered a variation for aircraft sales.
Poppell's House Bill 173 would have reduced the state's aircraft tax from 6 percent to 3 percent to help Florida compete with lower levies in neighboring states.
Poppell, who represents portions of Indian River County, home to a Piper Aircraft facility, cited an example of the disparate taxes on the sale of a turbo-prop Piper Meridian.
Georgia imposes a sales tax of $80,000 while Alabama collects $40,000. Florida's tax is $120,000.
Under HB 173, Florida's reduced tax tab of $60,000 would split the difference and still be sharply higher than North Carolina ($1,500) and South Carolina ($300).
Estimating models projected that the state would recoup its revenue loss after the first year.
Were grossly mistreating owners, says Poppell.
The Legislature agreed to Poppell's proposal to give pilot/owners 20 days of "fly-in" protection from additional fees on services and training, but rejected the proposed tax cut on plane purchases.
That steams the veteran legislator, who noted that his bill was a competitive tax reduction, not an arbitrary tax cap. Now, instead of all plane purchasers getting an across-the-board tax break, only high-end yacht buyers are in the line to reap favored treatment via the jobs bill amendment.
Bottom line: A buyer of a $3 million jet would have paid $90,000 in sales taxes under Poppell's 3 percent tax plan. A buyer of a $3 million yacht will pay just $18,000 in sales taxes under Weatherford's amendment.
"That's unfair," Poppell said.
Then again, Poppell is retiring, due to term limits. Weatherford is a rising Republican star on track to become speaker of the House in 2012.
Gov. Charlie Crist has indicated he will sign SB 1752 today. He has not said if he will use his line-item veto on the yacht provision.
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Reach Kenric Ward at kward@sunshinestatenews.com or at (772) 801-5341.
