New Jersey Offers Sales Tax Break On New Boats In 2016

TRENTON, N.J. (CBS) - The new year brings with it a tax break for boaters in New Jersey. At least, those looking for a new one.

Buy a new recreational boat in the Garden State starting in February and you'll pay half the sales tax. You're looking for a really big one? Your total sales tax bill is capped at 20 thousand dollars under a measure signed into law recently by Governor Chris Christie.

The Marine Trades Association of New Jersey lobbied long and hard for this break.

"We believe that this will give our industry sort of a boost that we desperately need to sort of increase sales," Executive Director Melissa Danko told KYW Newsradio, "which will ultimately increase service work and more revenues to the state and ultimately more jobs."

The number of registered boats in the Garden State dropped by about 40% in recent years.

"Over the last 15 years we lost 100 thousand boaters," Danko said. "So we hope that this will give people the incentive to not only buy their boats here but stay here."

Blame Sandy, the recession and competition from other states. In fact, New York State recently approved its own sales tax cap on new boats.

The short term cost to New Jersey is estimated at about 8 million dollars a year.