Originally Posted by grant_west
Can someone explain how the "Luxury Tax" was justified.
I can understand registration fees, the money would (or should) go to water ways and boating specific causes. Example your boat reg fees should pay for your local public ramps and the water police ect.
Where does the money for Luxury Tax go? Where are these funds being used!
I guess I'm all backwards in my thinking. Because I think I should get a TAX Break. For buying a boat NOT penalized. When you buy a boat think about the trickle down money you spend that you wouldn't spend if you just stuck your money in the bank!!
All the gear you buy= sales tax
The parts you buy and the service money=sales tax
You go and drop a 5k stereo in your boat=Sales tax
You go to the store and spend Money for food and Booze for the day on the water
All this money that gets pushed around because you chose to buy a boat and outfit it and use it. It's all money that is in circulation. Eveytime you spend a dollar the state gets 10c. All the state should be doing is getting people to spend more money. That's tax $ that just comes to them for nothing
Basically, it's CA saying that since you live Beyond normal means, aka: you can afford to own a boat, they tax you for it. I believe it is only if your boat is stored at your residence, but I forgot the exact details. I honestly think that is the way its going here. If you own items that the average household does not, you will pay taxes for it.
Same thing goes for heavy vehicle tax. They tax a vehicle above a certain GVWR saying that it ruins roads.
I think that its more of the environmentalist groups pushing the government to add all these taxes to stop excess pollution and try to push businesses out of the state.