February 23, 2009 (Chicago, IL) – Today, Karma Yacht Sales, LLC initiated a grass roots campaign on behalf of the Marine Sailboat Dealers and Sailing Community of Illinois in speaking out against proposed bill (HB0451). The campaign seeks to educate Illinois lawmakers on the effect of the proposed bill and its impact to retail businesses. The proposed bill seeks to impose a five percent luxury tax on a broad range of consumer products including automobiles over $60,000, watercraft exceeding a cost of $200,000, aircraft in excess of $500,000 and jewelry or fur clothing in excess of $20,000. The proposed bill comes at a time when most businesses in the marine industry have seen a slowdown in sales due to the economy. Many marine manufacturers in the United States have gone to pulse production or reductions in workforce to bridge this slow economic period. On the dealer level, many of the businesses are small, family owned and have also been hit hard by decreased revenue, increased cost of goods and tightening credit terms by banks. As a whole, the U.S. Boating industry is comprised mostly of small- and medium sized businesses. The products are primarily made in America by American Workers. Over the past year- recreational boating directly and indirectly impacted 337,758 U.S jobs with a labor income of $10.4 billion. Nearly 19,000 boating businesses employ more than 154,000 U.S. workers. Currently boat sales are subject to State, county and local city taxes. As an example, boats sold to a resident of Chicago are subject to a 7.25% tax for the state, .75% tax for Cook County and 0.25% for the City of Chicago. With this bill, the state would be increasing their share to 12.25% one of the highest in the country. “Placing a selective tax on boat sales, car sales or any retail business in this economy has the potential to further the slowdown in sales” says Karma Yacht Sales co-owner Lou Sandoval. “Coupled with decreased consumer confidence in a slow economy and the net effect will be the opposite of what our national leadership is trying to stimulate- job retention”. We truly hope that our State leaders will be prudent and rational in their thought process. We understand that this is a difficult economic time for the state. As taxpayers and citizens in our communities no one is aware of this more than we are during these times. We urge them to look inwards at ways to reduce frivolous spending and misdirection of public funds prior to increasing taxes that have the potential to effect business growth and viability. There are over 300 marine businesses in the State of Illinois that deal in the sales, service and brokerage of boats (power and sail). Boat sales have been on a decline over the past year due to the economic recession. Hit hardest last season was the power sector of the market that saw decreased sales due to the high cost of gas. The credit crunch took its toll on sales when several marine floor plan lenders and retail lenders exited the market in mid 2008, tightening the availability of credit. Karma Yacht Sales, LLC is a privately owned family business based in Chicago. They deal in the sale of new boats thirty foot to over fifty foot for the brands Beneteau and Alerion Express. They also have a warranty service and brokerage component to their business. The business was previously Darfin Yachts Ltd. Prior to being purchased by Jack Buoscio and Lou Sandoval in 2002. For more information on KYS visit: www.KarmaYachtSales.com or http://tiny.cc/w1ia7 For Media Inquiries Contact: Lou Sandoval- 773-254-0200 x2010 lou@karmayachtsales.com
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