As we wrapped up last week's Government Affairs work since the introduction of the Luxury Tax, we would like to send an update on where we are in the process.  A call to action email with instructions, contacts and messaging will follow this email shortly.

1.   Here is the latest from Jim Hedrick as of Saturday, April 5th:

"Earlier this week, Governor Ferguson laid out what he needs in a budget from the legislature. Essentially Ferguson said the legislature’s budget proposals depend too much new revenue and that the Wealth Tax (1% on financial assets of $50 million or more) probably would not withstand a court challenge and rejected it. Please understand, this is completely separate from the proposed luxury boat tax in the Senate Transportation budget and the provisions of SB 5801 remain intact and are still in play. SB 55801, passed by the Senate, is in the House Transportation Committee and at this time is still not scheduled for any action (i.e. public hearing).

Ferguson’s announcement essentially sends both the House and Senate back to the drawing board on their budgets; including the Senate Transportation which relies heavily on operating budget increases because of the sales tax diversion and general obligation bonding paid for with operating revenue.  The likely hood of the legislature finding additional budget reductions, additional revenue, and coming to an agreement prior to the constitutional end of the session on April 27 is dwindling. Special session is a very real possibility.

At this point, we must operate under the assumption that the legislature will end on time AND that the luxury boat tax will remain as part of the final package. Below are members of the Senate Transportation Committee, where the luxury boat tax was added, I recommend making contacts with the Senate Transportation Committee (where the luxury boat tax was added) with the message points delivered to House members. The onslaught of calls to House Transformation members was effective; we need to remain vigilant.” - Jim Hedrick, NYBA Lobbyist

YOU WILL RECEIVE AN EMAIL SHORTLY WITH THE SENATE TRANSPORTATION COMMITTEE CONTACT INFO AND SUGGESTED MESSAGING.  

2.    We want to thank all members who have reached out to us for providing letters, comments and supporting our membership with this awareness campaign.  This will take everyone in our Association as well as all of the others.  As we talk and strategize with other organizations across the country, we find an overwhelming sense of urgency as well as pride for our industry and its people.  While this drastically effects our brokerage industry, the impact is much larger on our great workforce of boatbuilders, boat yards, independent workers and so on. This is a jobs bill, pure and simple.  It affects everyone and we are very proud to have the powerful resources and commitment of the Northwest Yacht Brokers Association at our disposal.  

3.    There has been an overwhelming response to the "Wealth Tax" conversation that the Governor talked about last week (see above, in Jim's update). Please understand that the Wealth Tax is very different than the Luxury Tax. The Wealth tax will tax aggregated wealth, and the Luxury Tax will tax boats, RV's, airplanes, and cars.  These two are very different, which means the Luxury Tax is still a fight and we need to spread the awareness on how this effects our industry and its workers.  Call or email your representatives and make it clear your opposition on this Bill.  We do not want this attack on our industry ever again.  

4.    We sent out a survey/poll mid last week.  The response has been great!  Please take the time to complete the small survey as it helps us in our awareness for our Association.  If you have any difficulties or questions, please call the NYBA office as they are more than happy to help. We will be expanding this into next week due to some members having difficulties with their passwords or the email going into their SPAM folder. Poll is linked here. (you must login to vote, you can reset your password by clicking the "forgot password" link at the login screen)

5.    We have continued to move forward with our media partners.  Since the last update, more than 100 media outlets have been notified.  This list is too long to publish, so please, if you have a recommendation, reach out to us and we will contact them.  Further, there was a segment with Kevin on KVI 570 discussing the impact of the bill on our industry that went very well.  KVI is now wanting to focus on this further.  Also, Soundings Trade Only did an interview which should be seen shortly.  Lastly, our media strategist for the Boat Show is partnering with us to continue to add value to our awareness campaign.  

6.    Many of you asked about what the RV, Aircraft and Car industry is doing.  We are in the process of gaining those connections and contacts in which we would look to collaborate any ideas or partnerships. If anyone has a direct contact, please let us know as we would like to explore this avenue as well.  

To wrap up, our Lobbyist, Jim Hedrick, commended us on our efforts and indicated that the Northwest Yacht Brokers Association and its members are definitely being heard.  Jim indicated that we need to push the gas pedal to floor and keep the calls, letters and emails coming into the representatives. Please have everyone in your organization, friends, clients, family members and so on call, email and make your voice heard in opposition to this SB5810.  

Please find below letters from Fluid Motion LLC (the West Coast's largest fiberglass boat manufacturer) and Pacific Maritime Title, detailing their concerns regarding the impending luxury tax. These letters were sent to the House and Senate, sharing how the luxury tax will affect two very successful and growing businesses in the Northwest marine industry:

Fluid Motion LLC letter to Legislature (text copy)
Pacific Maritime Title letter to Legislature (official letter)

Please call us if you would like any other updates or have any questions or comments.  Not only are we available but all of our Board Members and Association Staff members are available.  Please do not hesitate to reach out.  

Paul Groesbeck 
NYBA Board President
(425) 829-3551

Kevin Blake
NYBA Board Member - Chairman of Government Affairs
(360) 808-7120