California floats the most boats

MIKE WHITEHEAD

Ahoy.

California is No. 1 in the nation as reported by the National

Marine Manufacturers Assn. No. 1 in what, you ask? Well, I am proud

to say boating! California finally ranks first in the nation, with

the highest number of boat registrations, a title that Michigan had

held for years.

In 2002, California reported a record number of 1,051,606 vessels

when overall registrations in the United States increased by 154,000

to 13 million recreational boats, a 1.2% increase from 2001. The

association has developed the 2002 U.S. Recreational Boat

Registration Statistics report with registration data provided by the

U.S. Coast Guard, the U.S. Oceanic and Atmospheric Administration and

Statistical Surveys Inc.

“The number of boats owned in the U.S. exceeds the 13 million

reported by the [Coast Guard], since many small, nonpowered crafts

such as canoes and utility boats are not required to be registered by

many states, or are simply not registered by owners,” said Jim Petru,

the association’s market statistics director.

The top seven states are California with 1,051,606; Michigan with

1,000,337; Florida with 922,597; Minnesota with 834,974; Wisconsin

with 650,280; Texas with 624,390; and New York with 529,732.

You can order the 2002 U.S. Recreational Boat Registration

Statistics report from the National Marine Manufacturers Assn. The

costs are $60 for association members and $150 for nonmembers. Call

(312) 946-6200 to get one.

Who knows what state has the least number of boats? E-mail me your

answer, and if you’re correct, then your name will be put into a hat

for a chance to win a prize. I will blindfold my show manager,

Chandler Bell, to pick a winner during my radio show.

These statistics are very important for the industry to determine

trends and, most importantly, for the allocation of the Aquatic

Resource Trust Fund by the federal government to each state. Boating

has an immense economic influence on not only in the Newport Harbor

area and the state, but nationally.

The economic output in other industries from boating in California

is more than $10.4 billion annually from the estimated boating

business’s direct economic output. State and local tax revenues from

boating raises an estimate of more than $1.6 billion annually.

Boaters spend $5.5 billion annually in other businesses from

boating activity in California. Now, how many billions is the state

in deficit? Well, the boating contribution to the gross state product

is estimated at more than $16.5 billion. Also, boating provides

California with more than 8,486 marine establishments providing more

than 284,060 jobs, and we need to keep these jobs in California.

Many local governments are quick to point to the elimination of

offshore deliveries for expensive yachts for which no sales tax is

paid. However, in reality, if that provision is eliminated, then the

higher-end yacht sales will simply move out of California.

You must remember that sales are only one aspect in the net

result, as yachts sold in California are also “rigged” in California.

Rigging is when the yachts are outfitted to the owner’s

specifications with items such as electronics (easily worth $20,000

to $50,000), fishing gear (a few thousand dollars), safety equipment

(a couple of thousand), dinghies with outboard engines ($20,000 and

up). The list goes on, including shipwright work, marina costs,

thousands of gallons of fuel and floral arrangements. Sales tax is

paid on these purchases.

I do not want to see Washington or Florida benefit if we push

yacht sales out of California. Also remember, once a yacht comes back

into Newport Harbor, the owner pays personal property tax, so think

of the economic benefit derived from a $1-million yacht sitting in

its slip. From paying property taxes to the cost of maintaining the

vessel, including paying the scuba diver who cleans the hull’s

bottom, it adds up.

Tune in to my “Boathouse Radio Show” this and every Sunday from 4

to 5 p.m. on KCBQ-AM (1170), or listen over the Internet at https://

www.boathouseradio.com. You can call the toll-free listener line at

(888) 344-1170 and join in on Southern California’s only boating talk

radio show reaching up the coast from San Diego to Oxnard and out to

Santa Catalina Island.

Safe voyages.

* MIKE WHITEHEAD is the Pilot’s boating and harbor columnist. Send

him your harbor and marine-related thoughts and story suggestions by

e-mail to mike@boathousetv.com.