Driving in my car, smoking my cigar,
The only time I’m happy’s when I play my guitar.
Singing in my yacht, what a lot I got,
Happiness is something that just cannot be bought.
I’ve been in and I’m out, I’ve been up and down,
I don’t want to go until I’ve been all around.
What’s it all about, anyone in doubt,
I don’t want to go until I’ve found it all out.
– “N.S.U.” by Cream
In our ongoing efforts to dig a little deeper on this year’s legislative session, this edition will take a moment to discuss the oft-mocked but perhaps jobs-creating tax break for yacht owners. Sponsored by Rep. Ron Stephens (R- 164 Savannah) and carried in the senate by Sen. Ben Watson (R- 1 Savannah), H.B. 125 would place a cap on the sales tax in excess of $35,000 for a single event of maintenance, refitting or repairs to a boat.
According to The Triton, “the monthly newspaper for the people who earn their living working on luxury yachts”, this might have been evident for those in the know early last year as Colonial Group in Savannah began renovating a long-time shipyard there to handle yachts. The property has a 535-foot graving dock, 1,000-ton marine railway, with water 47 feet deep in the river and 25 feet deep in the graving dock (all of which are probably impressive statistics if you are in the yacht repair business) and has operated as a deepwater yard for a number of companies, most recently Global Ship Systems in 2007. Colonial Group purchased the property and began redeveloping it last year.
Jim Berulis was named a Vice President at Colonial after previous experience at Rybovich and Trinity Yachts. He told The Triton in February last year about the intention for the facility to serve the yachting industry. “This is a wonderful spot and Savannah is a good destination.The yachts that have been here, like to be here, and this is perfect for repairs and refits,” said Berulis.
Rep. Stephens defended his legislation saying that currently there are no businesses like this in Georgia so the tax rule would not cut into existing revenue. Stephens said Colonial is planning on investing more than $50 million into the business and it would create hundreds of jobs. The tax break would help lure yacht owners away from Florida, where most of this work is currently done.
Breaking with his party a bit, Sen. Lester Jackson (D- 2 Savannah – and home to the shipyard in question) urged support for the bill from the well. “This bill is about good paying jobs. Let our people in this great state to access to this. This is a jobs bill. So, I rise to support HB 125. It’s not just a Coastal Georgia bill, it’s a Georgia bill to support jobs.”
Sen. Josh McKoon (R- 29 Columbus) spoke on the floor in opposition of the bill. “Each time we pass these tax credits, we send a message that if you come to the General Assembly, and you say, ‘I’m going to create ‘x’ number of jobs, then you can seek tax credits. We should be competitive due to our broader tax policy that any business could enjoy if they decided to expand their business in Georgia.”
Sen. Nan Orrock (D- 36 Atlanta) summed it up bluntly during committee discussion earlier in the month. “Have you considered the optics to this bill?”
It will be left to the public to determine any action due to those optics.
