Bill > HB696

This bill establishes a new waterway usage fee system for motorboats in Kentucky, with several key provisions. Federally documented vessels not used for commercial purposes will be exempt from state and local ad valorem (property) taxes. Boat owners will be required to pay an annual waterway usage fee ranging from $40 to $350 depending on the length of their boat, with exemptions for commercial vessels and government-owned boats. The collected fees will be deposited into a new waterway usage fund, with 15% allocated to the Department of Fish and Wildlife Resources for enforcement, and the remainder distributed to local taxing districts to make up for lost tax revenue from the vessel tax exemption. The bill also creates a Kentucky lakes and rivers tourism fund, which will receive remaining funds and provide grants to marinas for tourism marketing, requiring a 20% local matching contribution. Boat owners will receive a waterway usage sticker upon payment, and failure to pay the fee will result in a $500 fine. The legislation takes effect on January 1, 2026, and aims to provide tax relief for recreational boat owners while supporting local tourism and maritime enforcement efforts.