By Chad Tokowicz, Government Relations Manager, Marine Retailers Association of the Americas (MRAA)

If there was one clear takeaway from state level advocacy battles in 2025, it’s this: recreational boats remain an attractive revenue target for lawmakers. Across the country, legislators introduced proposals to increase sales taxes, impose new “luxury” taxes, or remove long-standing tax exemptions on recreational vessels. While many of these efforts were ultimately defeated or scaled back, they offer a clear warning sign for what marine retailers, and the boating public, may face again in 2026.

Boat Taxes Gained Momentum in 2025

Throughout 2025, multiple states introduced legislation aimed at increasing taxes on recreational boats. These proposals were often framed as “luxury” taxes or minor adjustments to existing tax codes, but in reality they would have imposed significant new costs on boat buyers, dealers and marine service providers.

These efforts highlight a clear pattern: when states face budget pressure, recreational boats often become an easy political target.

– Chad Tokowicz

In Washington State, lawmakers proposed a luxury tax on recreational vessels that would have extracted millions of dollars from the marine industry annually. Strong advocacy by the Northwest Marine Trade Association, supported by MRAA, ultimately led to the bill being tabled and dramatically reduced the long-term tax burden on boat sales.

In New Jersey, a proposed increase in taxes on recreational boats was defeated after coordinated opposition from industry stakeholders.

Meanwhile, Rhode Island lawmakers introduced legislation that would have eliminated long-standing tax exemptions for recreational vessels, threatening one of the state’s most important economic sectors. That proposal stalled after overwhelming opposition from boaters and marine businesses.

These efforts highlight a clear pattern: when states face budget pressure, recreational boats often become an easy political target.

Why Recreational Boat Taxes Hurt Marine Retailers

Proposed boat taxes don’t just affect boat buyers, they directly impact marine retailers, service departments, marinas and the broader recreational boating industry.

• Increased taxes:
  • Raise the cost of ownershipDiscourage new boat purchases
  • Can push consumers to buy boats in neighboring states with more favorable tax structures
• For marine retailers, that means:
  • Fewer salesReduced service revenueTighter margins
  • Uncertainty when planning inventory and staffing.

• These policies also harm local economies by:
  • Reducing tourism
  • Shrinking marina activity
  • Weakening waterfront communities that depend on recreational boating

Why 2026 Could Be Another Critical Year

History shows that failed tax proposals rarely disappear for good. More often, they return in subsequent legislative sessions with new bill numbers, revised language or expanded scope. With ongoing state budget challenges and continued political momentum behind “tax the rich” initiatives, recreational boat taxes are likely to remain on the agenda in 2026.

That makes early engagement essential. In many of the 2025 battles, success depended on lawmakers hearing directly from MRAA Members, business owners who could explain the real-world consequences of taxing recreational boats. Those conversations helped shift the narrative from abstract revenue projections to tangible economic harm.

How Marine Retailers Can Help Stop Boat Tax Increases

The Marine Retailers Association of the Americas is already preparing for renewed state-level tax fights in 2026. Our Government Relations team is actively monitoring legislative activity, working with state marine trade associations and building coalitions to oppose harmful tax proposals before they gain momentum.

But advocacy is strongest when MRAA member retailers are involved. Dealers are often the most trusted voices with policymakers, and your experience helps lawmakers understand how proposed taxes impact jobs, small businesses and local economies. Whether it’s responding to action alerts, meeting with elected officials, or sharing data about your business, dealer engagement remains critical to defeating new recreational boat taxes.

So stay on the lookout for opportunities to engage from the MRAA Government Relations Team. If you learn of a proposal to increase taxes in your state, reach out to us immediately!

Staying Ahead of the Threat

The state boat tax battles of 2025 demonstrated both the risks facing the recreational boating industry and the power of coordinated advocacy. As we head into 2026, MRAA remains committed to protecting marine retailers and ensuring recreational boating remains accessible and affordable. Staying informed, engaged and ready to act will be essential to preventing harmful tax policies from becoming law.

MRAA stands ready to fight these battles alongside you, but maintaining a strong business starts with awareness and engagement today. Curious about how to get engaged in your state or have questions? Email MRAA Government Relations Manager Chad Tokowicz at Chad@mraa.com or MRAA Government Relations Director at Sayre@mraa.com to connect today.