Archive for » June 29th, 2013«

Scaled-back Connecticut boat taxes take effect

HARTFORD, Conn. (AP) — Boat sellers and their customers are getting a break as Connecticut scales back taxes on boat sales that produced little revenue, but lots of complaints from the industry.

Beginning Monday, boats docked in Connecticut for 60 days or less will be exempt from the sales and use tax and a 7 percent luxury tax will be reduced to 6.35 percent, the rate of the state’s sales tax, on boats costing more than $100,000.

“It has a huge effect,” Dave Pugsley, vice president and general manager at Brewer Yacht Sales, said of the tax. “We’re a small industry, but we’ve been around forever and employ a lot of people.”

The recession and weak recovery hurt boat sales and high taxes “would drive people out of the market,” he said.

Rep. Patricia Widlitz, the House chairwoman of the legislature’s Finance, Revenue and Bonding Committee, said lawmakers two years ago set a 7 percent luxury tax on boats selling for more than $100,000. Boat sellers were telling state officials that in response, buyers were avoiding the tax by negotiating the price to below the $100,000 threshold and bypassing Connecticut for Rhode Island, which does not impose a sales tax on most boats.

Making matters worse for the state, the tax generated only $70,000 in revenue, she said. Widlitz, a Democrat whose district includes the Long Island Sound towns of Branford and Guilford, said she received complaints from boat yards about the tax.

“We were losing business up and down the shoreline,” she said. “It was just as easy to go to Rhode Island.”

As Connecticut aggressively competes for business with loans, grants and other economic development programs, the boat taxes were making the state “completely uncompetitive,” Widlitz said.

The luxury tax still applies to jewelry of more than $5,000, clothing sold for more than $1,000 and luxury cars of more than $50,000, Widlitz said.

Pugsley said the state should anticipate that increased sales due to the tax cut will yield more revenue. Florida capped taxes last year, and he said it helped restore business in the state.

“It’s a perfect example of how less taxes creates more revenue,” he said.

Employment at boat dealers, boat yards and marinas in Connecticut plummeted 21 percent from 2007, just before the start of the recession, to last year as the recovery continued, according to the state Department of Labor. Jobs in those three parts of the industry fell to 1,898 from 2,405 in the five-year period.

Pugsley said business, particularly in the sale of “brokerage boats,” or used boats, has improved as the economic recovery picks up. New boat sales have not rebounded, he said.

“It’s still a difficult business right now,” he said.

Brewer’s operates 14 offices between New York City and Portland, Maine.

Lauren Dunn, spokeswoman at the National Marine Manufacturers Association, said the industry saw the tax cuts in Connecticut as a “major win.”

“While the percent lowered doesn’t look to be that large, it just brings down another barrier to folks having access to boats,” she said.

Retail sales for new power and sail boats were up 10.7 percent in 2012, she said.

Boat owners are not rich, she said. Three-fourths of the estimated 17 million boat owners in the United States have household incomes of less than $100,000, keeping them in middle class or upper middle class.

And Widlitz said the tax cuts were not intended to help millionaires.

“We’re not giving a break to yacht owners,” she said. “This is economic development.”


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Tax on boats to recede Monday in Connecticut

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Saturday, June 29, 2013 1:08 AM EDT

Tax on boats to recede Monday in Connecticut

HARTFORD — Boat sellers and their customers are getting a break as Connecticut scales back taxes on boat sales that produced little revenue, but lots of complaints from the industry.

Beginning Monday, boats docked in Connecticut for 60 days or less will be exempt from the sales and use tax and a 7 percent luxury tax will be reduced to 6.35 percent, the rate of the state’s sales tax, on boats costing more than $100,000.

“It has a huge effect,” Dave Pugsley, vice president and general manager at Brewer Yacht Sales, said of the tax. “We’re a small industry, but we’ve been around forever and employ a lot of people.”

The recession and weak recovery hurt boat sales and high taxes “would drive people out of the market,” he said.

Rep. Patricia Widlitz, the House chairwoman of the legislature’s Finance, Revenue and Bonding Committee, said lawmakers two years ago set a 7 percent luxury tax on boats selling for more than $100,000. Boat sellers were telling state officials that in response, buyers were avoiding the tax by negotiating the price to below the $100,000 threshold and bypassing Connecticut for Rhode Island, which does not impose a sales tax on most boats.

Making matters worse for the state, the tax generated only $70,000 in revenue, she said. Widlitz, a Democrat whose district includes the Long Island Sound towns of Branford and Guilford, said she received complaints from boat yards about the tax.

“We were losing business up and down the shoreline,” she said. “It was just as easy to go to Rhode Island.”

The luxury tax still applies to jewelry of more than $5,000, clothing sold for more than $1,000 and luxury cars of more than $50,000, Widlitz said.

Pugsley said the state should anticipate that increased sales due to the tax cut will yield more revenue. Florida capped taxes last year, and he said it helped restore business in the state.

Employment in Connecticut’s boating industry dropped from 12,000 before the recession to 4,500 this year.

Pugsley said business, particularly in the sale of “brokerage boats,” or used boats, has improved as the economic recovery picks up. New boat sales have not rebounded, he said.

Retail sales for new power and sail boats were up 10.7 percent in 2012, said Lauren Dunn, spokeswoman at the National Marine Manufacturers Association.

Boat owners are not rich, she said. Three-fourths of the estimated 17 million boat owners in the United States have household incomes of less than $100,000, keeping them in middle class or upper middle class.

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Young sailor from Hyderabad to represent country in Hungary

Tarun Bhatia, a 12 standard student of P. Obul Reddy Public School has been selected to represent India in the Laser 4.7 World Sailing Championships 2013 to be held at Lake Balaton Fured in Hungary from July 6 to 13.

The championship is one of the most popular and competitive international sailing meets which usually attracts more than 350 sailors from all over the world. Young Tarun Bhatia began sailing at the tender age of eight years at the Hussainsagar lake inspired by his elder brother and his father Pranav Bhatia, both sailors.

Starting with the Optimist class like many beginners, he has now graduated to sailing the Laser 4.7 Class boats which are a slightly smaller version of the Radial Laser and Standard Laser boats. Tarun has represented India at several championships in the past in the Optimist class.

“The Laser is one of the most popular single-handed boats in the world. It is simple to rig and easy to sail. It also provides very competitive international racing due to the class controls which eliminate differences in hull, sails and equipment. So skill and technique are very important when racing in a Laser,” says Tarun.

Most of the time he practices on his own but sometimes he has been lucky to have as his coach one of India’s most accomplished sailors – Rajesh Choudhary – who himself learned sailing on the waters of the Hussainsagar lake many years ago.

He is a member of the Secunderabad Sailing Club which has produced many champions with the most famous being C.S Pradipak, an Arjuna Award winner.

“Having experienced seniors around me is both an inspiration and a learning experience,” says young Tarun, confident of putting up a good show having already participated in Singapore, Doha and Quingdao (China) international competitions.


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Scaled-back Connecticut boat taxes take effect

HARTFORD, Conn. (AP) — Boat sellers and their customers are getting a break as Connecticut scales back taxes on boat sales that produced little revenue, but lots of complaints from the industry.

Beginning Monday, boats docked in Connecticut for 60 days or less will be exempt from the sales and use tax and a 7 percent luxury tax will be reduced to 6.35 percent, the rate of the state’s sales tax, on boats costing more than $100,000.

“It has a huge effect,” Dave Pugsley, vice president and general manager at Brewer Yacht Sales, said of the tax. “We’re a small industry, but we’ve been around forever and employ a lot of people.”

The recession and weak recovery hurt boat sales and high taxes “would drive people out of the market,” he said.

Rep. Patricia Widlitz, the House chairwoman of the legislature’s Finance, Revenue and Bonding Committee, said lawmakers two years ago set a 7 percent luxury tax on boats selling for more than $100,000. Boat sellers were telling state officials that in response, buyers were avoiding the tax by negotiating the price to below the $100,000 threshold and bypassing Connecticut for Rhode Island, which does not impose a sales tax on most boats.

Making matters worse for the state, the tax generated only $70,000 in revenue, she said. Widlitz, a Democrat whose district includes the Long Island Sound towns of Branford and Guilford, said she received complaints from boat yards about the tax.

“We were losing business up and down the shoreline,” she said. “It was just as easy to go to Rhode Island.”

As Connecticut aggressively competes for business with loans, grants and other economic development programs, the boat taxes were making the state “completely uncompetitive,” Widlitz said.

The luxury tax still applies to jewelry of more than $5,000, clothing sold for more than $1,000 and luxury cars of more than $50,000, Widlitz said.

Pugsley said the state should anticipate that increased sales due to the tax cut will yield more revenue. Florida capped taxes last year, and he said it helped restore business in the state.

“It’s a perfect example of how less taxes creates more revenue,” he said.

Employment at boat dealers, boat yards and marinas in Connecticut plummeted 21 percent from 2007, just before the start of the recession, to last year as the recovery continued, according to the state Department of Labor. Jobs in those three parts of the industry fell to 1,898 from 2,405 in the five-year period.

Pugsley said business, particularly in the sale of “brokerage boats,” or used boats, has improved as the economic recovery picks up. New boat sales have not rebounded, he said.

“It’s still a difficult business right now,” he said.

Brewer’s operates 14 offices between New York City and Portland, Maine.

Lauren Dunn, spokeswoman at the National Marine Manufacturers Association, said the industry saw the tax cuts in Connecticut as a “major win.”

“While the percent lowered doesn’t look to be that large, it just brings down another barrier to folks having access to boats,” she said.

Retail sales for new power and sail boats were up 10.7 percent in 2012, she said.

Boat owners are not rich, she said. Three-fourths of the estimated 17 million boat owners in the United States have household incomes of less than $100,000, keeping them in middle class or upper middle class.

And Widlitz said the tax cuts were not intended to help millionaires.

“We’re not giving a break to yacht owners,” she said. “This is economic development.”


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O’Leary back in overall lead

O’Leary back in overall lead

If the first two days of the Covestone Asset Management Sovereigns Cup were branded “champagne sailing”, yesterday was the cork being firmly shoved back into the bottle as fresh to strong winds took their toll across the 90-strong turnout.

Class One entry Eos broaches in breezy conditions and choppy seas off the Old Head of Kinsale. Picture: David Branigan/OceansportAs the breeze strengthened throughout the day, peaking around 25 knots, the bumpy sea conditions sent boats heading for shelter, many with a variety of breakages or bodily wear and tear.

Others had little choice such as Nicholas “Nin” O’Leary who had been leading the 1720 Sportsboat class.

When the backstay broke on T-Bone, owned by Tom Durcan and Clive O’Shea, their series was brought to an abrupt halt. Despite placing second in the morning race, maximum points followed for the two missed races and O’Leary dropped to fifth place overnight.

That morning second place was to Nin’s older brother, Peter, who followed that race win with another two bullets in the afternoon and the double-Olympian re-took the overall lead with a 12-point cushion over visitor Tom Forrester-Coles.

Anthony O’Leary also moved into the podium stakes though today’s three races to wrap-up the series may be insufficient to depose his oldest son from the lead.

Apart from the various retirements from the Sportsboat class, just the top three boats in the quarter-tonners stayed afloat for the final race amongst these 30-year-old classics.

Sam Laidlaw on Aguila punched in two race wins plus a second for the day and with this form, probably only needs to sail one or two races today to win the class outright.

If wins by O’Leary and Laidlaw seem impressive, they can’t match the record of former Kinsale YC Commodore and 10-time paralympian John Twomey on Shillelagh in Class 3.

Six straight wins for the series in his Blazer 23 footer leaves him looking untouchable while Jamie Bergin and Brendan Foley on their J24 footer Jaws have also been consistently notching up second and third places though lack the points comfort to lay claim to the runner-up place before this evening’s prize-giving.

Twomey will be pleased regardless of the result because this week marks added time on the water in preparation for his seasonal and possibly career highlight when Kinsale YC hosts the International Disabled Sailing Federation World Championships at the end of August.

One of the most admired boats in the entire fleet is the overall Class Zero leader visiting from Britain. Andy Williams Ker-designed 40-footer Keronimo is cleaning up in the 10 boats of the class leading to suggestions in some quarters that a Class Super Zero might be needed — were there sufficient demand.

But Williams doesn’t have complete domination and lighter winds forecast today could yet see his five-point lead thin if the chasing pack led by Crosshaven’s Kieran Twomey on Gloves Off has their way. A full programme is expected today and with the drop in wind to more manageable conditions, the corks may yet be popping off the Old Head once more.

© Irish Examiner Ltd. All rights reserved

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Proponents say scaled-back boat taxes to boost economic development

Hartford – Boat sellers and their customers are getting a break as the state scales back taxes on boat sales that historically produced little revenue but lots of complaints from the industry.

Beginning Monday, boats docked in Connecticut for 60 days or less will be exempt from the sales and use tax, and a 7 percent luxury tax will be reduced to 6.35 percent, the same as the state’s sales tax, on boats costing more than $100,000.

“It has a huge effect,” Dave Pugsley, vice president and general manager at Brewer Yacht Sales, said of the tax. “We’re a small industry, but we’ve been around forever and employ a lot of people.”

The recession and weak recovery hurt boat sales and high taxes “would drive people out of the market,” he said.

Rep. Patricia Widlitz, the House chairwoman of the legislature’s Finance, Revenue and Bonding Committee, said lawmakers two years ago set a 7 percent luxury tax on boats selling for more than $100,000. Boat sellers told state officials that in response, buyers were avoiding the tax by negotiating prices to below the $100,000 threshold and bypassing Connecticut for Rhode Island, which does not impose a sales tax on most boats.

Making matters worse for the state, the tax generated only $70,000 in revenue, she said. Widlitz, a Democrat whose district includes the Long Island Sound towns of Branford and Guilford, said she received complaints from boat yards about the tax.

“We were losing business up and down the shoreline,” she said. “It was just as easy to go to Rhode Island.”

As the state aggressively competes for business with loans, grants and other economic development programs, the boat taxes were making it “completely uncompetitive,” Widlitz said.

The luxury tax still applies to jewelry of more than $5,000, clothing sold for more than $1,000 and luxury cars of more than $50,000, Widlitz said.

Pugsley said the state should anticipate that increased sales due to the tax cut would yield more revenue. Florida capped taxes last year and, he said, it helped restore business in the state.

“It’s a perfect example of how less taxes creates more revenue,” he said.

Employment at boat dealers, boat yards and marinas in the state plummeted 21 percent from 2007, just before the start of the recession, to last year as the recovery continued, according to the state Department of Labor. Jobs in those three parts of the industry fell to 1,898 from 2,405 in the five-year period.

Pugsley said business, particularly in the sale of “brokerage boats,” or used boats, has improved as the economic recovery picks up. New boat sales have not rebounded, he said.

“It’s still a difficult business right now,” he said.

Brewer’s operates 14 offices between New York City and Portland, Maine.

Lauren Dunn, spokeswoman at the National Marine Manufacturers Association, said the industry saw the tax cuts as a “major win.”

“While the percent lowered doesn’t look to be that large, it just brings down another barrier to folks having access to boats,” she said.

Retail sales for new power and sail boats were up 10.7 percent in 2012, she said.

Boat owners are not rich, she said. Three-fourths of the estimated 17 million boat owners in the United States have household incomes of less than $100,000, keeping them in middle class or upper middle class.

And Widlitz said the tax cuts were not intended to help millionaires.

“We’re not giving a break to yacht owners,” she said. “This is economic development.”


Similar news:

Proponents say scaled-back boat taxes to boost economic development

Hartford – Boat sellers and their customers are getting a break as the state scales back taxes on boat sales that historically produced little revenue but lots of complaints from the industry.

Beginning Monday, boats docked in Connecticut for 60 days or less will be exempt from the sales and use tax, and a 7 percent luxury tax will be reduced to 6.35 percent, the same as the state’s sales tax, on boats costing more than $100,000.

“It has a huge effect,” Dave Pugsley, vice president and general manager at Brewer Yacht Sales, said of the tax. “We’re a small industry, but we’ve been around forever and employ a lot of people.”

The recession and weak recovery hurt boat sales and high taxes “would drive people out of the market,” he said.

Rep. Patricia Widlitz, the House chairwoman of the legislature’s Finance, Revenue and Bonding Committee, said lawmakers two years ago set a 7 percent luxury tax on boats selling for more than $100,000. Boat sellers told state officials that in response, buyers were avoiding the tax by negotiating prices to below the $100,000 threshold and bypassing Connecticut for Rhode Island, which does not impose a sales tax on most boats.

Making matters worse for the state, the tax generated only $70,000 in revenue, she said. Widlitz, a Democrat whose district includes the Long Island Sound towns of Branford and Guilford, said she received complaints from boat yards about the tax.

“We were losing business up and down the shoreline,” she said. “It was just as easy to go to Rhode Island.”

As the state aggressively competes for business with loans, grants and other economic development programs, the boat taxes were making it “completely uncompetitive,” Widlitz said.

The luxury tax still applies to jewelry of more than $5,000, clothing sold for more than $1,000 and luxury cars of more than $50,000, Widlitz said.

Pugsley said the state should anticipate that increased sales due to the tax cut would yield more revenue. Florida capped taxes last year and, he said, it helped restore business in the state.

“It’s a perfect example of how less taxes creates more revenue,” he said.

Employment at boat dealers, boat yards and marinas in the state plummeted 21 percent from 2007, just before the start of the recession, to last year as the recovery continued, according to the state Department of Labor. Jobs in those three parts of the industry fell to 1,898 from 2,405 in the five-year period.

Pugsley said business, particularly in the sale of “brokerage boats,” or used boats, has improved as the economic recovery picks up. New boat sales have not rebounded, he said.

“It’s still a difficult business right now,” he said.

Brewer’s operates 14 offices between New York City and Portland, Maine.

Lauren Dunn, spokeswoman at the National Marine Manufacturers Association, said the industry saw the tax cuts as a “major win.”

“While the percent lowered doesn’t look to be that large, it just brings down another barrier to folks having access to boats,” she said.

Retail sales for new power and sail boats were up 10.7 percent in 2012, she said.

Boat owners are not rich, she said. Three-fourths of the estimated 17 million boat owners in the United States have household incomes of less than $100,000, keeping them in middle class or upper middle class.

And Widlitz said the tax cuts were not intended to help millionaires.

“We’re not giving a break to yacht owners,” she said. “This is economic development.”


Similar news:

Scaled-back Connecticut boat taxes take effect

HARTFORD, Conn. (AP) — Boat sellers and their customers are getting a break as Connecticut scales back taxes on boat sales that produced little revenue, but lots of complaints from the industry.

Beginning Monday, boats docked in Connecticut for 60 days or less will be exempt from the sales and use tax and a 7 percent luxury tax will be reduced to 6.35 percent, the rate of the state’s sales tax, on boats costing more than $100,000.

“It has a huge effect,” Dave Pugsley, vice president and general manager at Brewer Yacht Sales, said of the tax. “We’re a small industry, but we’ve been around forever and employ a lot of people.”

The recession and weak recovery hurt boat sales and high taxes “would drive people out of the market,” he said.

Rep. Patricia Widlitz, the House chairwoman of the legislature’s Finance, Revenue and Bonding Committee, said lawmakers two years ago set a 7 percent luxury tax on boats selling for more than $100,000. Boat sellers were telling state officials that in response, buyers were avoiding the tax by negotiating the price to below the $100,000 threshold and bypassing Connecticut for Rhode Island, which does not impose a sales tax on most boats.

Making matters worse for the state, the tax generated only $70,000 in revenue, she said. Widlitz, a Democrat whose district includes the Long Island Sound towns of Branford and Guilford, said she received complaints from boat yards about the tax.

“We were losing business up and down the shoreline,” she said. “It was just as easy to go to Rhode Island.”

As Connecticut aggressively competes for business with loans, grants and other economic development programs, the boat taxes were making the state “completely uncompetitive,” Widlitz said.

The luxury tax still applies to jewelry of more than $5,000, clothing sold for more than $1,000 and luxury cars of more than $50,000, Widlitz said.

Pugsley said the state should anticipate that increased sales due to the tax cut will yield more revenue. Florida capped taxes last year, and he said it helped restore business in the state.

“It’s a perfect example of how less taxes creates more revenue,” he said.

Employment at boat dealers, boat yards and marinas in Connecticut plummeted 21 percent from 2007, just before the start of the recession, to last year as the recovery continued, according to the state Department of Labor. Jobs in those three parts of the industry fell to 1,898 from 2,405 in the five-year period.

Pugsley said business, particularly in the sale of “brokerage boats,” or used boats, has improved as the economic recovery picks up. New boat sales have not rebounded, he said.

“It’s still a difficult business right now,” he said.

Brewer’s operates 14 offices between New York City and Portland, Maine.

Lauren Dunn, spokeswoman at the National Marine Manufacturers Association, said the industry saw the tax cuts in Connecticut as a “major win.”

“While the percent lowered doesn’t look to be that large, it just brings down another barrier to folks having access to boats,” she said.

Retail sales for new power and sail boats were up 10.7 percent in 2012, she said.

Boat owners are not rich, she said. Three-fourths of the estimated 17 million boat owners in the United States have household incomes of less than $100,000, keeping them in middle class or upper middle class.

And Widlitz said the tax cuts were not intended to help millionaires.

“We’re not giving a break to yacht owners,” she said. “This is economic development.”


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Spread Your Wings and Fly: Halifax Week in Pictures

Last week brought some amazing weather to the region for a great close to the annual Multicultural Festival. It was also great weather for sailing boats – big and small.

This week also saw the re-birth of Canada’s only mouth-blown, hand-cut crystal maker – Nova Scotia Crystal – which came under new management recently.

Haligonians can look forward to it’s annual military spectacle, the Royal Nova Scotia International Tattoo, which starts this weekend. From what we saw at the media preview on Wednesday, the show looks bigger and better than ever.

Members of Cabaret Serpentine perform on the final day of the Multicultural Festival on Sunday Afternoon. The annual festival celebrates food, music and dance of various cultures of the world. (METRO/Jeff Harper)

Members of the Halifax Area Model Yacht Club race their boats in the sunshine on Sullivan’s Pond on Sunday. The club races every Thursday and Sunday and you can find more info on their website. (METRO/Jeff Harper)

A sailboat takes a leisurely sail in the Halifax Harbour past the George’s Island lighthouse on Monday. Temperatures in metro reached the high twenties in the afternoon. (METRO/Jeff Harper)

Participants in the Walk a Mile in Her Shoes charity walk traverse the Scotia Square mall in high shoes on Tuesday. The annual event seeks to raise money and a awareness for violence against women. (METRO/Jeff Harper)

Mayor Mike Savage, left, and MLA Leonard Preyra walk through the Scotia Square food court in high heels on Tuesday as part of the Walk a Mile in Her Shoes event.(METRO/Jeff Harper)

Anthony Tebay, left, and his father Jack Tebay blow and shape and crystal at Nova Scotia Crystal on Wednesday. Canada’s only mouth-blown, hand-cut crystal maker is reopened its doors this week. (METRO/Jeff Harper)

Police collect evidence after shots were fired on Isleville Street on Tuesday. (METRO/Jeff Harper)

Members of the German Bicycle Team perform during a media preview of the Royal Nova Scotia International Tattoo at the Metro Centre on Wednesday. The annual event starts this Sunday. (METRO/Jeff Harper)

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