RBOC urges California boaters to take the following BoatUS survey today to help us gauge the effect that AB 71 [Chiu] would have on your boating. To take the survey: click here
AB 71 [Chiu] would repeal the state income tax deduction for loan interest paid on 2nd homes which include boats and RVs.
Currently boats that have cooking, sleeping and sanitary facilities qualify for this deduction.
We would appreciate you taking the short survey to help us gauge the effect of this change on your boating.
RBOC is opposing AB 71 [Chiu] unless the measure is amended to remove the provision that would eliminate the state tax deduction for mortgage interest on second homes.
RBOC supports the provisions of AB 71 that propose to increase the amount of tax credits available for low income housing.
However, RBOC is concerned that the provisions of AB 71 that would eliminate the state tax deduction for mortgage interest on second homes would lead a significant number of prospective boat purchasers not to invest in a recreational vessel.
This would have a direct, negative impact on the future purchase of recreational vessels, the multibillion dollar state boating industry including ancillary products and services, as well as the economic health of many communities across the state that rely on revenues generated by boaters.
It is also important to note that the amount of the mortgage interest deduction is already capped regardless of whether the taxpayer has one home or two, and that recreational vessels that are second homes may not necessarily be vacation homes but could be used by owners who commute to work during the week.