Connecticut revenue swells after boat tax reduction
Connecticut just cut their boat tax in half and according to one business owner it sends a big message to the rest of the state: cut taxes and increase business.
“The proof is in the numbers -- and I think we've shown that to Hartford…” Bob Petzold the president of Petzold’s Marine, a Portland, Connecticut-based boat and Yacht business, told FOX Business’ Stuart Varney on Friday.
“By reducing the tax by cutting that tax in half. We've actually increased the tax dollars to the state of Connecticut.”
In July, Connecticut lowered its sales tax on marine vessels to 2.99 percent from 6.35 percent in response to pressure from several marine businesses losing revenue to surrounding states. Not only were sales flat, but registrations to the state dropped over the last eight years, according to Petzold.
However the tax reduction are proving to be a boon to the economy. Petlzold said sales skyrocketed within the first 10 months.
“Right now our sales have gone up by millions of dollars year over year since that tax,” he said. “Our unit volume is up 70 percent and we're getting into our busiest boating season right now.”
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Petlzold said they have also begun hiring more full time employees.
“Based on the increased sales and increase in sales, we need store personnel we need people in our camera shops, we need people in our service departments. We've added 9 new people since this has taking place and these are, you know, good paying skilled jobs.”