The Triton

Boat Show News

Florida representative says it’s time to fix antiquated law

ADVERTISEMENT

U.S. Congresswoman Lois Frankel (D-FL) told a story at the Palm Beach International Boat Show that inspired her to push for a way to enhance the financial impact of the yachting industry.

“For many years, every year I was in the state legislature, it would coincide with our budget meetings, so I would miss so many boat shows,” Frankel said during a press conference near the waterfront on Friday.

“When I retired from the legislature to run for mayor of West Palm Beach, I came down to this boat show and what amazed me was how many thousands of people were here,” Frankel said as she pointed to the crowds. “That is what really inspired me.”

Frankel introduced a bill in 2011 that is gaining strength with bi-partisan support.

“We have an idea we’re cooking up in Congress, we have a way to bring more boats and more jobs not only to South Florida, but to the country,” she said.

The bill would allow foreign-flagged yachts to come into the United States year-round, not just at boat shows, to sell their yachts and then pay the tax, according to Frankel.

“We have an antiquated law that requires foreign-flagged yachts, even before the sale is made, to pay upfront a tax, the duty,” Frankel said. “We believe this is discouraging lots of them from coming here to sell their yacht.”

Frankel said that there are about 400 yachts offshore that would want to come into the United States with approval of the bill.

U.S. Congresswoman Lois Frankel (D-FL) explains her bill at the Palm Beach International Boat Show. Photo by Dorie Cox

U.S. Congresswoman Lois Frankel (D-FL) explains her bill at the Palm Beach International Boat Show. Photo by Dorie Cox

Jeff Erdmann, chairman of Florida Yacht Brokers Association (FYBA)’s Legislative Affairs Committee said the world was a different place when the original law was enacted.

“It was put in place in 1908 when world was an isolationist place here in the U.S.,” Erdmann said. “Right after World War I it was a very different economy, a very different environment,” he said. “Today trade is so important to our economy and we want to bring more to the United States.”

Ermann said, “If we could get yachts to be able to come to the United States, offer their boats for sale and then pay the duty afterwards it would not cost the federal government a single penny.”

The move would bring more revenue to the state of Florida, he said.

“But the additional impact, $2.46 billion in economic impact, that’s just going to build the economy overall,” Ermann said.

“When we talk about jobs,” Frankel said. “We think this bill will do it.”

Click for full detail of bill H.R.4065 – “To amend the Tariff Act of 1930 to provide for a deferral of the payment of a duty upon the sale of certain used yachts, and for other purposes.”
Dorie Cox is associate editor of Triton Today. Comments on this story are welcome at editorial@the-triton.com.

About Dorie Cox

Dorie Cox is editor of The Triton.

View all posts by Dorie Cox →

Related Articles

Developer withdraws bid on Bahia Mar rezoning, redevelopment

Developer withdraws bid on Bahia Mar rezoning, redevelopment

A letter to withdraw plans to redevelop Bahia Mar Resort and Marina, home to the Fort Lauderdale International Boat Show (FLIBS), has been sent to the the city of Ft. Lauderdale. The city …

Pilgrimage just the ticket for crew vacation

Holiday options for yachties are plentiful, but few are as life-changing as a pilgrimage. So with South Africa’s chilly winter fast approaching, I decided to take a walk in warmer climes. Like …

Furuno NavNet goes wireless

Marine electronics manufacturer Furuno has updated its systems apps and now offers free apps for the NavNet TZtouch system for Android devices. Furuno developed a NavNet Controller app that …

Interior staff competition tabled

Yacht Next has hosted the annual Perfect Setting Tabletop Challenge at the Ft. Lauderdale International Boat Show since 2008, but has put this year's competition on hold.Joanne Lockhart, owner of …

Talk Less, Listen More

One of the top skills for a leader to develop and cultivate is the skill of listening. So the message I have this month is to talk less and listen more. The best leaders are those who make the effort …

Numarine completes latest model, 70-foot flybridge

Isle of Man-based Numarine has completed production of its latest model, the 70-foot (21.6m) flybridge. The yacht has three en-suite guest cabins that include “split berths” where the twin …

Comments

4 thoughts on “Florida representative says it’s time to fix antiquated law

  1. Grace Abel

    It would never work. Most of the boats for sale at the Palm Beach Boat show and even the Ft Lauderdale Intl Boat Show are foreign flagged with foreign crew. Boats can advertise they are for sale in the US waters with restrictions that they are “Not for sale in US waters to US citizens”. Yet the main purpose of being in a boat show is to have an open house to sell the boat. To make the sale these boats go a few miles off shore to sign the paperwork and make the sale tax free in international waters or closer to the Bahamas. Because of this loophole no foreign flag boat will willingly pay the duty or sales tax. Bringing more foreign Flagged boats in may help the yacht industry grow in South FL and benefit some contractors, but most foreign flag boats have insurance policies that don’t allow them to hire Americans or have restrictions to hire only 1 or 2 Americans per boat.
    I don’t see this Bill bringing any more tax revenue to FL or any jobs to Americans.

  2. Michael Riley

    Foreign flags vessels have no interest in paying U.S. Taxes and most will actively do whatever they can to avoid paying them, even to the point of committing fraud. This bill would never work. If Frankel is really interested in bringing more jobs for AMERICANS into the yachting industry she should help encourage The Department of State to STOP issuing B1/B2 visas to foreigners who fraudulently enter the U.S. As a tourist then hit the streets looking for work and stealing jobs from tax paying Americans.

  3. Grace Abel

    If any other Americans in the yachting industry feel that this Congresswomen does not have all the facts with pushing this bill, please email her with your concerns at http://frankel.house.gov/contact/contactform.htm?zip5=33462&zip4=6002
    Her interview is troubling and does not reflect the reality of the yachting industry. I personally wold like to know who she expects these newly created jobs will benefit because it doesn’t sound like it would benefits American workers or increase FL tax revenue at all. Foreign flag boats are already granted cruising permits to the US and can come here for repairs and to be listed for sale in boat shows. I have worked for many American boat owners who have registered their yachts in tax haven countries such as Isle of Man, Cayman Islands and Marshall Islands…these boats have never been to these countries and the paperwork was filed in Ft Lauderdale by a representative for these flag states.
    I have been turned down for jobs before even interviewing because I am American, I have mostly been the only American allowed to work on the yacht because of insurance purposes.
    This bill will not create jobs for Americans or generate tax revenue for FL, this only benefits rich yacht owners and yacht brokers. Foreign Flag boats are already allowed cruising permits and extended permits to have maintenance done at US shipyards. This will only eliminate the need to register a boat with an American Flag, to hire Americans who pay taxes on their income, it also degrades the whole US Coast Guard Captain’s License system and makes the British ticket/MCA the new standard to be hired on a foreign flag boat.
    This is a very misleading bill and the small community of Americans in yachting need to write this Congresswoman Frankel.

  4. Jeff Erdmann

    American yachting crew who want more opportunities to work on all yachts including U.S. flagged yachts should reach out in support of Representative Frankel’s bill.
    Currently foreign flagged yachts with cruising licenses cannot offer their boat for sale to U.S. residents in U. S. Waters before being imported & paying duty. If they are caught offering for sale to a U.S. resident, they risk seizure and fines. The boat show bond exemption allows vessels 80′ & larger to show their boats to U.S. residents only during boat shows and expires after 6 months then the boat must leave the U.S.
    Representative Frankel’s bill would allow yachts with a cruising license to be offered for sale & then if sold to a U.S. resident would import & pay the duty at closing.
    This would encourage more yachts to come to the U.S. and offer their boats for sale in the best market in the world.
    There are in excess of $2.0B worth of foreign flagged boats for sale that cannot be offered for sale to U.S. residents. When boats are sold to U.S. residents while in U.S. waters there will be more U.S. Flagged boats for you to work on!
    The $18k tax cap has resulted a record number of boats over 40’ to be sold in Florida & fly a U.S. flag.

Leave a comment

Your email address will not be published. Required fields are marked *

Please answer the question below to leave a comment. * Time limit is exhausted. Please reload CAPTCHA.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Editor’s Picks

ABM gives Bahamas update

ABM gives Bahamas update

Joe Dargavage, vice president of the Association of Bahamas Marinas, gave attendees of last week’s Triton Virtual Networking event an …

New lift coming together at Derecktor Fort Pierce

New lift coming together at Derecktor Fort Pierce

It’s happening, and it’s going to be big. That’s the sense one can get as they see the buildout of the new Derecktor Fort Pierce …

COVID, fires, lawsuits, obituaries among top stories of 2020

COVID, fires, lawsuits, obituaries among top stories of 2020

Yacht captains and crew -- as well as other yachting professionals -- found lots of news of interest on The-Triton.com last …

Ending weird 2020 in the Exumas

Ending weird 2020 in the Exumas

At the beginning of this pandemic, I went into panic mode and pondered what my options were, seeing as I expected this to totally stall …

Events