TAX ON BOAT DIESEL FUEL FANNING FLAMES OF ANGER

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, February 23, 1992                   TAG: 9202220058
SECTION: BOAT SHOW                    PAGE: BS-11   EDITION: METRO 
SOURCE: Bill Cochran
DATELINE:                                 LENGTH: Medium
TAX ON BOAT DIESEL FUEL FANNING FLAMES OF ANGER
Boaters were happy when the Bush administration called for a repeal of a luxury tax on new boats costing more than $100,000, but that joy quickly turned to anger.
The fine print of the Bush tax plan calls for a new tax on diesel fuel used by boaters - as much as 21 cents per gallon - to offset the revenues lost by a repeal of the boat luxury tax.
"We are strongly opposed to any new tax that would unfairly shift the financial burden to middle-class Americans who use their boats primarily for family recreation and fishing," said Richard Schwartz, president of the 410,000 member BOAT/U.S.
Recreation boaters, Schwartz said in a letter to members of the House Ways and Means Committee, already are slated to pay over $600 million in federal gas taxes and $500 million more in user fee taxes over the next four years.
While there are few diesel-powered craft on the fresh waters of Virginia, diesel engines are common in coastal areas. They are a frequent form of power on the recreational fishing boats that use the Chesapeake Bay and offshore areas. Even non-boat owners could end up paying the tax through increased charter boat and party boat fees, foes of the plan say.
The boat luxury tax should be repealed, said Schwartz. The revenue it has raised is insignificant in comparison to the thousands of jobs it has cost, he said.
"Instead of singling out the American boating consumer for yet another tax, the Congress should look closely at levying a few pennies per gallon tax on diesel or bunker fuel used by foreign flag commercial vessels or cruise ships which use U.S. ports for gambling junkets to nowhere and who currently pay no fuel tax at all," said Schwartz.

by Bhavesh Jinadra by CNB