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@NCCapitol

Boat fees could rise to pay for dredging

Posted April 2, 2013

Senate lawmakers are debating a bill that would raise fees on boats across the state to pay for dredging for coastal inlets.

Sponsor Sen. Harry Brown, R-Onslow, said in a hearing Tuesday that the federal government used to pay for the dredging of shallow coastal inlets. But that money has dried up, and federal officials have made it clear it won't return. 

The state has enough money for dredging only to cover the rest of 2013.  

"We have more shallow draft inlets than any other state in the nation," Brown said. "Over time – and there are several inlets pretty close to this point now – those inlets start to fill in.

"When they fill in, the Coast Guard pulls the buoys that mark the channels," he warned. "If you want a dangerous situation, try to put yourself through an inlet that’s not marked, that’s shallow.

"It’s not a problem we can wait two or three years to handle," he said. "Every day that goes by, it gets worse."

The Division of Water Resources estimates keeping up with dredging will require a minimum of $6 million a year. 

Under current law, owners of boats of all sizes pay a registration fee of $15 a year. Senate Bill 58 would raise the fees July 1, 2013, as follows:

  • Boats under 14 feet  – still $15 a year
  • Boats 14 to 19 feet – $25 a year, a $10 increase
  • Boats 20 to 25 feet – $50 a year, a $35 increase
  • Boats 26 to 39 feet – $100 a year, an $85 increase
  • Boats 40 feet and over – $150 a year, a $135 increase

Paddle-propelled vessels like kayaks, canoes and rowboats would continue to be exempt from the fee, as would small sailboats.

The measure also increases the boat titling fee from $20 to $30. 

Powerboat generic, boating, speedboat generic Lakeside boat owners balk at new fees

Half of the new revenue would be used for motorboat access needs and safety programs. The other half would go into a fund for dredging. 

Brown said he's looked at every other revenue source he could find, but he's not willing to tap the transportation budget or the state Highway Trust Fund.

 "Those dollars are scarce as it is," he said. "It almost has to be a user fee to find the money."

But critics of the bill say it's inaccurate to call it a user fee. That because all boat owners would have to pay it, even those whose boats never leave the state's freshwater lakes.

Sen. Austin Allran, R-Catawba, questioned the fairness of asking his foothills constituents to pay for dredging at the coast.

"This is putting a tax on boats that do not leave an area," Allran said. "Why are you not putting the tax on the boats of the people who live in the counties that are affected?"

Brown said those boat owners will pay the higher fees along with all other owners. He says many people from the Triangle and points west bring their boats to the coast every summer to use the waterways, and residents all over the state commonly help pay for projects that benefit one region more than another, like the Interstate 440 loop in Raleigh. 

“You can argue that for all kinds of projects across this state,” Brown said. “I think if you start carving out who wins, who loses, I think you muddy the bill up."

Sen. Norm Sanderson, R-Pamlico, said the increase is too steep, especially in this economy.

"There’s a lot of folks in our state right now that find themselves boat-poor. They have more boat than they really want, but they’re stuck with it." Sanderson said, adding that some marina owners are even having problems collecting dock rents.

He noted that boat owners already pay gas tax when they fill up their boats, but only a fraction of a percent of that revenue is earmarked for waterway needs.   

Brown argued that the average increase wouldn't even come close to the price of one tank of gas for a boat. 

Jim Hardin with Grady-White Boats and Boats U.S. encouraged lawmakers to reconsider.

"We understand we need safe inlets," Hardin said, "but I think there are other ways to get a little piece of money here and there."

For example, Hardin said, diesel-powered boats don't currently pay road use taxes on their fuel. "We'd like to see a little more creative looking around." 

Connie Wilson with the Topsail Shoreline Protection Commission urged lawmakers to move ahead with the bill.

"This is critical for us," she said, noting that the tiny island's economy depends on tourism, fishing and boating. "These inlets are like our roads."

The Senate Finance Committee didn't vote on the bill Tuesday. It could come up for a vote later this week.

69 Comments

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  • cwmllc1952 Apr 4, 2:05 p.m.

    btneast says it's for people who eat Seafood so it should be just another Tax on all the NC people COAST TO THE MOUNTAINS. Just increase our taxes till we have nothing to give.

  • btneast Apr 4, 1:37 p.m.

    It might be more fair for boats registered in inland counties not to experience a rise in fees, or at least a lower tier rise than boats used in the sounds or the ICWW.

    How do you determine that? I live in the Triangle area and my boat is registered here, but I use it exclusively in coastal waters. Did the article not state that not all of the money from the increased fees would go to inlet dredging?

  • goldenosprey Apr 4, 1:14 p.m.

    DINO McIntyre and Freedom Fries Jones didn't come through with the funds this year, huh? All of you complaining Obama (or more accurately, Congress) spends too are seeing what happens. The burden is thrown on the states. You'll pay for the dredging one way or another.

    It might be more fair for boats registered in inland counties not to experience a rise in fees, or at least a lower tier rise than boats used in the sounds or the ICWW.

  • btneast Apr 4, 9:49 a.m.

    Maybe it's time to let nature take its course with the inlets.

    I take it you don't like fresh seafood? Navigable inlets are the only way to get from the sounds to the ocean, and are necessary for maritime commerce.

  • btneast Apr 4, 9:45 a.m.

    I live in the central area of NC and have to pay for the subsidized homeowners insurance for the coastal area. Now I have to supplement the coastal dredging costs as well?

    And the people in the coastal area pay for your roads to be salted and scraped in the winter, something that is never done in their area.

  • cwmllc1952 Apr 4, 8:20 a.m.

    My boats (3) don't go in the ocean. An increase of over 560% on my Registration is ridiculous.

  • delta29alpha Apr 3, 1:06 p.m.

    The new fee will only affect boaters and boaters issues so all others need not be concerned about this. inland Boaters may benefit by having a portion of the funds utilized to maintain the lakes and boating access areas that they utilize.

  • Wendellcatlover Apr 3, 12:44 p.m.

    Sounds just like what Obama is doing...making everyone share in the pain when the benefits are only to the few.

  • btneast Apr 3, 11:55 a.m.

    And yes, let the rest of the state STOP paying to fix Hwy12.

    Very short sighted....the area Hwy 12 services is a HUGE tax generating area for the state. Tourism is very close to being the top revenue producing industry in NC. The state is protecting its source of revenue.....

  • btneast Apr 3, 11:51 a.m.

    Will someone please say "No!" to these lawmakers!

    We have that option....every election....unfortunately people keep reelecting the same people because they like all the goodies "their" guy brings home. We have the lawmakers we asked for......

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