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Olszewski: Hiking Boater Fees Not The Answer

Del John Olszewski believes offering state subsidies, not drastically raising fees for boaters is the answer for supporting DNR waterway improvement efforts.

When asked about some of the best things in District 6 and eastern Baltimore County, residents would surely be quick to note our abundant waterfront access and boating-related activities. 

In recent years, however, the long-term vitality of the industry has come under attack. 

It is no secret that the state’s Waterway Improvement Fund, which is funded entirely by user fees on boaters and is used to pay for hundreds of public navigation channels and thousands of water-borne markers, is depleted. Under current projections, the $15 million expected to be brought into the fund this year is woefully below the amount needed to keep our waterways clear and accessible. 

In recent years, the response has been scaling back on the amount of dredging and other boating-related work completed.  Making matters worse, the U.S. Army Corps of Engineers has also scaled back their dredging in response to their own budget woes—cuts that could add millions more in responsibilities for Maryland agencies. 

All told, the state remains tens of millions short in the necessary funding to keep waterways up to appropriate standards to support maritime industries.

While we certainly do not want to become a “high tide state”—where residents can only access certain parts of the Bay during high tide—the sustaining of the channels need not entirely be funded through the Waterway Improvement Fund. 

For example, the state should consider diverting the portions of the state gasoline tax sold on the water toward the improvement of our waterways. If this seems unreasonable, consider this: Maryland currently subsidizes the horseracing industry with tens of millions of dollars of gambling revenue. 

Given how much more important the boating industry is to the long-term viability of our state (creating $2 billion in economic activity and supporting an estimated 35,000 jobs), it seems reasonable that the state create a subsidy, or divert at least a portion of other subsidies, to support the dredging that is so needed to prop up our boating industries. 

But the is the wrong way to address these challenges. The most recent economic downturn has affected everyone, and the boating industry has been hit especially hard. 

Those who are still boating face ever-increasing gas prices, increased tolls, and now also have to fear the incredibly large increases proposed by DNR.  Currently, boaters pay $24 biannually in boat registration costs. There is also a 5 percent excise tax paid for all new boats and when others are moved into Maryland from outside states. 

While it has been more than two decades since these costs have been increased, the tripling of these fees ($75 biannually) for small boats and other massive increases ($500 biannually) for boats over 45 feet are bad ideas on their own—but they also could not come at a worse time.

With the majority of boats being valued at just over $10,000, we should be doing everything we can to encourage more people to get their vessels out of the garage and into the water. Jacking up boater registration fees has the opposite impact, and only does additional damage to the vital marine trades industry.

I believe in supporting our boating industry, and will do all that I can to ensure that such support does not happen through additional costs imposed on our boaters and residents.  

Scott Sewell March 09, 2012 at 12:02 PM
Do a better job of enforcing existing laws regarding boat registration & there would be no need to drastically raise fees. There are thousands of boaters in Maryland who register their boats in Delaware to avoid paying the excise tax on them.
John March 09, 2012 at 01:11 PM
Good point Scott!
Art Cox March 09, 2012 at 02:23 PM
Thanks for your position on this John. What the real story is , at least in my case, is that the majority of our "gross" income is derived from out of state folks that go out of their way to come to Maryland and spend their money! The economic fallout goes way beyond Anchor Bay and The Hard Yacht Cafe. The out of state boaters spend their dollars at car rental facilities, grocery stores, other restaurants and bars as well as convenience stores just to mention a few. The legislature should rather be looking at ways to enhance the experience of our Chesapeake Bay for these folks and encourage more tourism so that we can all enjoy the rewards of their boating dollars. The sales tax base alone has to be enormous!! Penalizing these tourists just because they choose to boat in Maryland is not the answer. They have paid 2 toll increases in recent memory, alcohol tax increase, sales tax increase and still are here! I truly believe that if the proposed tax increases continue as well as proposed legislation for luxury tax, registration increase, and tax on labor & services increase go unchecked our boating industry will be crippled! Thanks John for your support on this. Art Cox Anchor Bay East Marina Hard Yacht Cafe
Graham March 09, 2012 at 03:24 PM
Well put Art
Tony T March 09, 2012 at 10:25 PM
The boating industry is on its butt, lets just put another nail in the coffin. It's a fact that less than 2% of the money collected from the road tax from fuel sales on the water goes to boating projects. What a money grab in Annapolis.
Scott Sewell March 10, 2012 at 01:42 PM
There you go Art, using common sense & logic. Don't forget, this is Maryland, land of entitlements & high taxes!
DHAMMER March 10, 2012 at 01:54 PM
There you go John,wanting to move this money from this pot to that pot. Isn't that why we keep getting TAXED more, oh I forgot,isn't that why Fees keep getting raised on flush Fees that the Democrats cruxified Erhlich over but they raised ,how about all the other (taxes) Fees on Tags, Titles,Liscenses and etc. etc.etc.!! .Lets rob the Transportation Fund.How about we stop paying TAXES for a Year and make you and your Colleagues sweat a little bit down there in sweet land Annapolis.Might cost us a Penality but it sure would be worth it.
Sam March 11, 2012 at 06:01 PM
If you like to trailer your small boat to the Eastern Shore for a little fishing it will cost you not only the higher expense of the toll, the gas and now the fee for your boat sticker. It seems to me that anything that may cause enjoyment you have to pay for big time. Oh, don't forget the new hike on the hunting fees. When I can get the heck out of maryland... I surely will!!
Terry Hutchinson March 12, 2012 at 01:23 PM
Is it just me or does everyone see a pattern here! Why is it that the democrats only know how to raise TAXES instead of trimming the budget. We sportsmen and sportswomen have taken it on the chin for a long time here in Maryland and it's time that we stop this madness. I hope all of you remember these foks come election day! I know I will!!
fred r. March 12, 2012 at 04:17 PM
Owe Malley,while you're at it,why not increase the tax on golf clubs by 500 %. You could also add a $10.00 TAX per hole played. Why just pick on boaters ?.
Buzz Beeler March 13, 2012 at 03:33 AM
Del. Oszewski, you might want to read this because the problems the county is facing is a little more discerning than a tax on boaters. http://www.baltimoresun.com/news/maryland/baltimore-county/bs-md-co-budget-preview-20120312,0,6319009.story Since I have been on this site, I have written time and time again, that there is much more pain in store for the county than the pain at the pump. I don't know of any medicine that can fix the suffering any time soon. I see more independence cards thank greenbacks and that is not a comforting sign. If staying in power means giving the people what they wanted - a lot of free stuff, then I guess the politicians have accomplished that, but sooner or later, the bill collectors will be knocking on their doors. I
Scott Sewell March 16, 2012 at 10:01 PM
Very true!
Buzz Beeler March 16, 2012 at 11:16 PM
Scott, all except the typo. This issue is becoming a national trend as in the - land of the free! http://online.wsj.com/article

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