Recreational boating in Canada is a $8.9 billion industry including direct, indirect and induced spending, supporting 70,000 direct and indirect Canadian jobs and nearly 4000 businesses. Both federal and local tax policies have major implications for recreational boating manufacturers.

Questions? Contact Sara Anghel at sanghel@nmma.org

 

Luxury Tax Update -- Week of February 10, 2020

NMMA Canada had the opportunity to attend the annual Parliamentary Outdoor Caucus Annual Meeting last week. NMMA’s Sara Anghel made a presentation to MPs on the economic impact a luxury tax would have on local businesses and jobs that rely on the boating sector. The following Members of Parliament were present:

  • Blaine Calkins, MP Red Deer—Lacombe

  • Bob Zimmer, MP Prince George—Peace River—Northern Rockies

  • Corey Tochor, MP Saskatoon—University

  • Gudie Hutchings, MP Long Range Mountains

  • Larry Bagnell, MP Yukon

  • Lianne Rood, MP Lambton—Kent—Middlesex

  • Mel Arnold, MP North Okanagan—Shuswap

  • Rob Morrison, MP Kooteney—Columbia

  • Wayne Easter, MP Malpeque

Of note, MP Easter is Chair of the Finance Committee which is currently holding pre-budget consultations. Mr. Easter was very interested in our industry concerns and promised to return to the committee and inform the other 11 committee members. Also, MP Zimmer — who co-chairs the Parliamentary Outdoor Caucus along with MP Hutchings — volunteered to send a letter to Minister Morneau on the tax issue on behalf of the Outdoor Caucus.

NMMA also met with Finance Minister Morneau’s special advisor Ian Foucher who is instrumental in the upcoming budget. Mr. Foucher was attentive to our concerns and will be reviewing the issue closely. Finally, Sara Anghel met with the office of the Minister of Small Business to express our concerns.

On Monday February 3rd, NMMA Canada and Boating Ontario also had the opportunity to attend a meeting with five local MPs at the Greater Barrier Chamber of Commerce. The meeting also included representatives from local marinas, boat dealers and an auto dealership. Boating Ontario CEO Rick Layzell and NMMA Canada Director of Federal & Provincial Government Relations Jim Wielgosz presented a slide deck that outlined the economic footprint of the recreational boating industry and the projected damage of a luxury tax. The MPs were highly engaged by the presentation and pledged to support our efforts to pressure the government to abandon this ill-conceived policy. The following Members of Parliament were present:

  • John Brassard, MP Barrie—Innisfil

  • Doug Shipley, MP Barrie—Springwater—Oro-Medonte

  • Scot Davidson, MP York—Simcoe

  • Terry Dowdall, MP Simcoe—Grey

  • Bruce Stanton, MP Simcoe North

On February 27th NMMA Canada members, together with boat dealers and yacht brokers, will gather in Ottawa for ”Recreational Boating Day on the Hill“. We have requested meetings with over 150 MPs, Ministers and senior government officials to promote a message of competitiveness and job creation for the boating sector. This will be our best opportunity before the 2020 budget to drive home the message that a luxury tax on boats will put thousands of jobs at stake and likely won’t create the revenue the government is predicting.

We urge all members to continue reaching out to local MPs, municipal officials and other key stakeholders during this critical pre-budget period concerning the negative impact that a 10% luxury tax on boats over $100,000 would have on your business. Please see the attached template which can be used. History shows that luxury taxes have failed all over the world including the United States, Italy, Norway & New Zealand as consumers simply diverted their spending to other forms of recreation and the governments collected less tax revenue. Our ask is that recreational boats, which bring middle class families together just like other recreational vehicles, be excluded from this proposal.

We will continue to provide updates on a weekly basis regarding our efforts to fight the luxury tax.
 

Luxury Tax Update -- Week of February 3, 2020

“The Toronto International Boat Show wrapped up on Sunday, January 26th and after a challenging opening weekend snow storm, the crowds thundered back making for a strong retail sales closing weekend. Retail results were a mix of good to great with a noted emphasis on fiberglass sales in several key categories. After speaking with dozens of dealer principles and sales personnel it is worth noting that not a single consumer spoke to any of these retailers regarding the proposed luxury tax. This supports the recommendation of all trade associations that we continue to battle this proposal from the industry and not in front of the consumer at this time.” Rick Layzell, CEO, Boating Ontario 


We urge all members to continue with their local political community communications during this critical pre- budget period regarding the proposed 10% luxury tax on boats over $100,000. We continue to demonstrate to government that luxury taxes have failed all over the world including the United States, Italy, Norway & New Zealand as consumers simply diverted their spending to other forms of recreation and the governments collected less net taxes. Our ask is that recreational boats that bring families together just like other recreational vehicles be excluded from this proposal.

Follow-up requests have been sent out to to meet with the Minister of Finance, Bill Morneau and the Minister of Innovation, Science and Industry, Navdeep Bains and we expect to meet with them in the near future. Following is a list of meetings that have taken place since January 20th:

  • Ken Hardie, MP Fleetwood-Port Kells (Liberal MP who does not support the luxury tax and met with Boating BC and has provided our concerns to Minister Morneau)
  • Chief of Staff to Carla Qualtrough, MP Delta
  • Andy Fillmore, MP Halifax (Liberal MP meeting with Boating Atlantic and does not support tax)
  • Honourable Lisa McLeod, Minister of Tourism Ontario
  • Norm Miller, MPP Parry Sound—Muskoka (Member, Standing Committee on Public Accounts and Parliamentary Assistant to the Minister of Intergovernmental Affairs)
  • Billy Pang, MPP Markham—Unionville (Member, Standing Committee on Public Accounts and Parliamentary Assistant to the Minister of Intergovernmental Affairs)

Industry is reminded and encouraged to fill out the pre-budget consultation survey; go to this link and make a submission on behalf of your business.

The Industry will assemble in Ottawa for Recreational Boating Day on the Hill at the end of February where the industry will request to meet with over 150 MPs, Ministers and departmental staff.

We will continue to provide updates on a weekly basis regarding our efforts on the luxury tax.
 

Luxury Tax Update -- Week of January 20, 2020

The Federal governments proposed 10% luxury tax on boats over $100,000 is a priority action item for all of us in the boating industry. We urge all members to continue their local political community communications during this critical pre budget period. Our position is that luxury taxes have failed all over the world including the United States, Italy, Norway & New Zealand as consumers simply diverted their spending to other forms of recreation and the governments collected less net taxes. Our ask is that recreational boats that bring families together just like other recreational vehicles be excluded from this proposal.

We have requested to meet with the Minister of Finance, Bill Morneau and the Minister of Innovation, Science and Industry, Navdeep Bains and expect these meetings to be accepted shortly. Following is a list of meetings that have taken place on your behalf as we continue to fight for you:

  • Dominic Cormier, Policy Advisor Prime Minister’s Office
  • Bernadette Jordan, MP South Shore-St. Margarets & Minister of Fisheries & Oceans
  • Kate Young, MP London West
  • Elizabeth May, MP Saanich-Gulf Islands
  • Director General of the Sales Tax Division, Tax Policy Branch & his policy staff
  • Patrick Weiler, MP West Vancouver—Sunshine Coast—Sea to Sky Country
  • Mona Fortier, MP Ottawa—Vanier & Associate Minister of Finance & Middle Class Prosperity
  • Scott Aitchison, MP Parry Sound—Muskoka
  • Luc Berthold, MP Mégantic—L'Érable
  • Ken Hardie, MP Fleetwood—Port Kells
  • Brad Vis, MP Mission—Matsqui—Fraser Canyon
  • MPs have been flooded with letters from businesses across the country and all of us collectively as Marine Trade Associations, MP Saanich—Gulf Islands

Along with these meetings we will do:

  • Submit Pre-Budget Comments to the government — Industry is also encouraged to fill out the pre-budget consultation survey; go to this link and make a submission on behalf of your business
  • Targeted media campaign — Opinion article on ‘luxury tax’ in political publications including the Hill Times and iPolitics which are read by Ottawa government staff
  • Recreational Boating Day on the Hill (End of February) where the industry will request to meet with over 150 MPs, Ministers and departmental staff

 We will continue to provide updates on a weekly basis regarding our efforts on the luxury tax.

 

Boating tax