Report on the Sales Tax Repeal 2007

February, 2008

Dear Rhode Island State Officials and Legislators:

On behalf of the East Bay Economic Initiative (EBEI) and the Rhode Island Marine Trades Association (RIMTA), we have enclosed the Semi-Annual Report on Sales Tax Repeal for 2007.

This report has been generated every two years since 1992 and is a continuing follow up on the effects of the repeal of the sales and use tax on boats sold in Rhode Island. The results are from a survey sample of 29 diverse marine companies in Rhode Island. It is quite clear that the data indicates that the repeal of the sales tax in July of 1992 has spurred significant growth in employment and tax base in our industry.

Since the repeal of the sales tax there has been a significant economic gain for the state. Millions of dollars have been put back into the state’s economy. The survey, comparing 1992 to 2005 indicates that job growth has exceeded 55 % and the industry has added $130 billion to the economy of Rhode Island. In Rhode Island, there are over 2,300 marine related businesses, 6,600 jobs, with an average salary of $39,400.00. The industry has 450 employment vacancies and with projected Industry growth, there will be over 2,400 employment positions within the next five – ten years.

With your continued support, in a working partnership that’s unique anywhere in the United States, we will continue to grow the economy and add much needed jobs to our state’s employment base. However, our industry faces continued regulatory challenges which impede our progress. Today our membership is being faced with significant EPA regulations, including the requirement for our marinas and boatyards to install costly recycling equipment, and the new fires codes which if interpreted to the extreme will in fact put many of our members out of business. We are pleased to see that the waterfront regulatory agencies, i.e., Coastal Resource Management Council and the Department of Environmental Management, have done a good job in modifying their regulations pertaining to marinas in partnership with RIMTA to affect common sense requirements that will both foster growth while preserving our precious natural resources.

Thank you all for your support and help, and we look forward to continued success.

Sincerely,

Chris Ruhling
President

For the complete report, see link below.