By Evan Halper
Los Angeles Times Staff Writer
February 19, 2008
SACRAMENTO — Yacht buyers will continue to benefit from a loophole that allows them to avoid sales tax on their boats, after Republicans in the Assembly blocked an effort to close it Tuesday.
Closing the tax loophole -- "sloophole" as it has come to be known by Democrats -- takes a two-thirds majority vote in each house of the Legislature, which requires some Republicans to get on board. Not enough of them did Tuesday, so on a 47-18 vote by the 80-member Assembly, the move to scuttle the tax benefit failed.
Last week, lawmakers voted to cut schools, healthcare and welfare programs by $2 billion.
"It is unconscionable to cut education and welfare while not closing this loophole," said Assembly Budget Committee Chairman John Laird (D-Santa Cruz). "Everyone needs to be part of a budget solution, including yacht owners."
Republicans, who say forcing yacht buyers to pay the tax would drive jobs out of California, called the proposal "political gamesmanship" that would do little to close the state's multibillion-dollar deficit.
"Let's focus on the real budget, the real problems and what we have to do," said Assembly Republican Leader Mike Villines of Clovis.
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