Florida's Marine Industry To Benefit From Amendment 6

by Mike Godfrey, for Tax-News.com, Washington

14 November 2008

It is expected that changes to the taxation of property in Florida will greatly benefit the state's struggling marine industry.

Under the introduction of Amendment 6, which was voted into legislation during the presidential election with 70.5% backing, the way in which property taxes are defined in Florida will completely change, giving the state's real estate market a more competitive edge.

Prior to Amendment 6, all working property within Florida's waterfront was taxed according to its "highest or best potential," which meant that the state could tax a property based on how much revenue it had the potential to achieve. Under this regime, a working marina could be branded in the same category as a beach-front condo, pushing the tax bills for the maritime industry to sky-high levels. And because of their dependence on direct access to the waterfront, relocating in order to try and lower tax bills was simply not an option for marinas.

However, the introduction of Amendment 6 will change the entire shape of the maritime industry, as properties will no longer be taxed according to what they have the potential to earn, but instead taxes will be charged based on the actual use of a company's building, relieving the industry of unnecessary tax charges, and protecting it from future property assessments.

Florida's maritime industry is an extremely vital component within the states overall economy. It contributes significantly more economic output than both Florida's citrus and cruise ship industries combined and generates around 22,000 jobs and USD18bn worth of revenue every year.

Amendment 6, which was proposed by Florida's Taxation and Budget Reform Commission, will ensure that extra revenue is freed up within the maritime industry, encouraging growth and expansion by providing tax incentives for landowners who wish to maintain their working waterfront properties and provide public access to Florida's waterways.

The proposed amendment states that the following marine venues and working waterfronts will be taxed at the property's current use:

• Marinas and docks open to the public for water access and recreational uses;
• Public vessel launches into navigable inland and coastal waterways;
• Commercial fishing facilities;
• Water-dependent marine manufacturing facilities; and
• Marine vessel construction and repair facilities.

Recommended