As preparations are made for the January release of your proposed state budget for fiscal year 2025-2026, RBOC together with several other organizations collectively representing California’s boaters and boating industry are urging Governor Newsom and legislative leaders to consider and include the recommendations that were developed by the Division of Boating and Waterways [DBW] in State Parks through a comprehensive stakeholder engagement process.
In addition to RBOC, groups joining in the request include our national advocacy partner BoatUS, California Marine Affairs and Navigation Conference, Coastal Conservation Association of California, Marine Recreation Association, National Marine Manufacturers Association, Pacific Inter-Club Yacht Association, and Southern California Yachting Association.
DBW created three ad hoc subcommittees in November 2021 on Revenue Generation, Program Development and Alternative Funding Sources, each chaired by a Boating and Waterways Commission member, staffed by DBW, with stakeholder participation. Each met several times through 2022 and developed recommendations that were submitted to DBW and State Parks on November 17, 2022. The stakeholders participated in a two-year effort and submitted our joint recommendations in writing during this process.
The key expectation was that adoption of the recommendations would reduce costs and increase revenues, thereby reducing or eliminating any increase in the boater registration fees. In January of 2021 the proposal was to raise the fees from $20 to $70 every 2 years. Subsequent proposals called for even more of an increase, from $20 to $80 every 2 years.
We remain concerned that the stakeholder engagement has not continued, that the submitted recommendations have not been implemented, that the projected structural deficit in the Harbors and Watercraft Revolving Fund will remain, and that a proposed Administration solution will be a significant boat registration fee increase that is not supported by the boating community.
The net effect would be the creation of a financial barrier to healthy on-the-water opportunities for the average California boat owner, whose boat is under 25 feet in length, and even more so for individuals in disadvantaged communities or on fixed incomes.
The average boat owner in California has an income of less than $70,000 per year, among those who are least able to afford the significant 300% increases in their registration fees. In California, the state collects use/sales tax on the purchase of a boat and annual unsecured property tax on the boat. A significant registration fee increase will essentially make boating an activity that the average Californian family cannot afford.
The number of registered vessels in California has already been decreasing. Several years ago, California ranked third in the number of registered boats by state, today the state is fifth. Local assessors have been drastically increasing the assessed value of vessels for local property tax purposes, regardless of their age. Boaters are being required to spend more money on less effective hull paints.
The hardship of quadrupling fees coupled with severely increased fuel costs would also decrease tax revenue from boaters that fuel boats and the vehicles that tow them off the water, impact on the water or walkable restaurants accessed by boats, shopping by boaters who buy boating and camping equipment, and pay for repairs. This is in addition to the day use and launch ramp fees boaters pay at State Parks. Our communities would pay less fees for fishing and hunting, and fewer launches would decrease launch fees collected and place more hardships on marina owners.
For these reasons, we reaffirm our support for the attached recommendations that were submitted by the three subcommittees on Alternative Funding, Revenue Generation and Program Development.
