This week, more than 50,000 boat enthusiasts are expected to attend the St. Louis Boat and Sports Show at the America's Center. Those looking to buy a bass boat or ski boat might be surprised to learn this dirty little secret: They'll pay state taxes at a lot higher rate than someone wanting to buy a yacht.
When the super-rich want to buy a $1 million yacht, they pay $14,500, or 1.45 percent in taxes, in the form of a watercraft fee. When anyone buys a ski boat for $20,000, they'll pay $1,465 in taxes, or 7.325 percent. The boat buyer pays taxes at a rate five times higher than the yacht buyer.
This yacht loophole is well protected by Republicans in the Legislature at a great cost to our state. Had the millionaire paid sales taxes on his million-dollar purchase, our state would have gained an additional $73,250 - enough to pay the starting salary of more than 2.5 teachers in a school district like St. Charles. Yacht buyers have been given an unfair tax break by the Legislature that robs our state of funds that could go to education.
Liz Smith Currie
Webster Groves
Printed in the St. Louis Post-Dispatch
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