A Nebraska state senator is proposing legislation that would keep boat buyers from avoiding taxes by declaring they are boat dealers.
Sen. Dave Pankonin told members of the Transportation and Telecommunications Committee that it’s time to require state registration of boat dealers not only to collect sales taxes, but also to bring professionalism to the business, the Omaha World-Herald newspaper reported.
It’s estimated that only about 20 legitimate boat dealers exist in the state, but about 155 people have obtained boat dealer “stickers” to obtain the sales tax exemptions, according to Common Cause Nebraska.
Jack Gould, a Common Cause representative, told the newspaper that when his group contacted some of the “dealers” it found plumbers, lawyers and others who received the tax break without having a legitimate business that sells boats.
Under Pankonin’s proposal, businesses would pay as much as $400 a year to obtain a boat dealer’s license from the Nebraska Motor Vehicle Industry Licensing Board, which regulates auto dealers. Businesses would have to sell at least five boats a year to be a dealer.
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