A new Louisiana tax break for high-end boats took effect July 1, capping local and state sales taxes at $20,000 for boats valued at $200,000 or more, Louisiana Illuminator reports.
The change, part of an omnibus tax bill sponsored by Rep. Julie Emerson, R-Carencro, is said to be designed to entice luxury boat owners to register their vessels in-state rather than in tax-friendlier places like Florida or Texas, which already cap boat taxes at $18,000 and $18,750, respectively.
The cap—provided taxes are paid within 90 days of purchase—applies to personal vessels and those used by charter and fishing tour operators but excludes commercial fishers and shrimpers, who already benefit from a full exemption.
“It’s a negligible cost if it costs us anything,” says State Revenue Secretary Richard Nelson, a Gov. Jeff Landry appointee, of the luxury boat tax break. “[The state] might end up making money.”
