Bill > H2482

This bill establishes a new excise tax on marine vessels, which is a tax levied on the privilege of using the waterways of the Commonwealth, with the tax rate set at $5 per $1,000 of the vessel's value, but with a minimum of $5 and a maximum of $2,000. The bill defines key terms like "Commissioner" (the commissioner of revenue), "Director" (the director of the division of law enforcement), "Principally situated" (where a vessel is primarily located), and "Vessel" (any watercraft used for transportation on water, including all its equipment). Owners of vessels are required to file an annual return by September 1st detailing their vessel's location and registration information, and the value of the vessel will be determined based on its make, type, model, and year of manufacture, with depreciation applied over time. Payment of this excise tax exempts the vessel from other property taxes under Chapter 59, and the collected revenue will be split, with 50% going to the municipal waterways improvement and maintenance fund. The bill also outlines exemptions for certain vessels, such as those used for commercial fishing with a value of $50,000 or less, or other vessels valued at $1,000 or less. Furthermore, it introduces a requirement for owners of federally documented vessels to obtain a registration decal from the state, and proof of payment of the prior year's excise tax will be necessary for obtaining or renewing vessel registration decals or certificates of number, with failure to pay resulting in penalties and potential refusal to allow docking. This new excise tax will apply to fiscal years beginning on or after July 1, 2014.