ROBERT L. EHRLICH, JR., Governor

H.B. 1001

without having to pay the excise tax. Under current law, nonresidents have 30 days to
stay in the State before they must pay the tax. The ultimate goal is to enable
non-Marylanders to stay in the State and spend their dollars in Maryland for more
than 30 days.

While the goals of this legislation are laudable, there is a technical error in the bill
that prevents me from signing it. House Bill 1001 fails to define what a business is
when it comes to chartering, renting, or leasing a boat. Without this definition, the
$25.9 million collected in fiscal 2002 from the excise tax could be in jeopardy. For
example, any person who buys a boat would be able to say he or she is going to
charter, rent, or lease it and be exempt from paying the excise tax. This could result
in the loss of millions of dollars in revenue to the State.

I will work with the sponsor during the interim to develop legislation to achieve the
goal of encouraging non-Marylanders to stay in our State and enjoy our multitude of
tourist attractions.

For the above stated reasons, I have vetoed House Bill 1001.

Sincerely,

Robert L. Ehrlich, Jr.

Governor

House Bill No. 1001

AN ACT concerning

Natural Resources - State Boat Act - Exemptions from Excise Tax

FOR the purpose of exempting a person from paying a certain excise tax for a transfer
to a business of a certain vessel for certain purposes; exempting a person from
paying a certain excise tax on a certain vessel that is purchased in the State,
subject to certain use limitations, and the displaying of a certain sticker
exempting certain transfers from the vessel excise tax; providing that certain
vessels in use for a certain amount of time are exempt from the tax; providing
that the Department of Natural Resources may issue a certificate of number to
a vessel under certain conditions; providing for the issuance of a title to certain
vessels under certain conditions; and generally relating to exemptions from
vessel excise taxes.

BY repealing and reenacting, without with amendments,
Article - Natural Resources
Section 8-716(c) 8-715(c) and 8-716(e)
Annotated Code of Maryland
(2000 Replacement Volume and 2002 Supplement)

BY repealing and reenacting, with without amendments,
Article - Natural Resources
Section 8-716(e) 8-716(c)
Annotated Code of Maryland

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