Business

Stafford Ponders Boat Tax Elimination

STAFFORD COUNTY, Va. — One thing is clear: Stafford County officials no longer want to tax pleasure boaters.

The county’s Board of Supervisors recently passed a non-binding resolution letting residents know Stafford – like Prince William, Fairfax, Alexandria, and other jurisdictions in Virginia – wants do away with its $5.49 per $100 assessed value personal property boat tax.

The challenge for Stafford County Commissioner of the Revenue Scott Mayausky: how to make it all work. The Board directed his office to conduct a study on what the county’s coffers will look like if the tax goes away. Mayausky said the tax must be eliminated by April to be effective this year.

It’s no secret that many boat owners store their boats outside of Stafford County during the winter months so they won’t be taxed, choosing instead to store them in places like Prince William County, which for years has had such a low boat tax it simply isn’t enough to generate a tax bill.

But, if the tax is eliminated, just what will happen in Stafford?

“When you try to predict the behavior of individuals, things get tricky, but we know if the tax goes away there would be no reason for a boater to take their boat out of Stafford County” said Mayausky. “Some fear the loss of the revenue, while others say more boats will come, marinas here could grow and build restaurants which means more meal taxes, and then you could also have more boat repair work being done, and more revenue in fuels tax as boaters fill up their tanks.”

Stafford’s boat tax generates $500,000 for the county annually. Its money that goes directly into the general fund, meaning it’s not earmarked for any special projects that would benefit marinas or pleasure boaters. On average, the owner of a boat that’s between 16 and 25-feet long pays a $123 tax bill. Boats 26 to 40 feet long generate a tax bill of $595, and owners with boats over 40-feet long pay $2,000 annually in boat taxes, said Mayausky.

Eliminating, or drastically reducing a tax, is something Stafford did before when they the county’s aircraft tax was reduced three times before it was finally eliminated. With the tax gone, more planes were stored at the growing Stafford Regional Airport, and the tax elimination came at the right time – before the county became dependent on aircraft taxes as a steady stream of revenue, said Mayausky.

Carlton Phillips owns Prince William Marina near Occoquan, one the busiest in the nation. It’s grown to include the Electric Palm Restaurant, boat storage, sales and service, a swimming pool, and a bath house. Boating is a competitive industry, said Phillips, and he feels confident he’ll be able to retain his customers even if Stafford does away with its boat tax.

“We’re big on customer service,” said Phillips. “The families that come here are forced to make tough decisions and choices on how to spend their hard-earned money: ‘do we want to boat on the river to take a family vacation at Disney World this year?’”