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Lawmakers debate bill to impose fees on 'mega yachts'

The State House in Augusta at dusk on November 9, 2022.
Esta Pratt-Kielley
/
Maine Public
The State House in Augusta at dusk on November 9, 2022.

A bill that would allow towns to charge additional fees on "megayachts" took a step forward in the Legislature on Tuesday.

Massive passenger cruise ships are summertime fixtures in some Maine harbors. But a growing number of privately owned mega- or super-yachts are showing up along Maine's coastline.

On Tuesday, the Maine Senate voted 18-17 to give initial approval to a bill that would allow harbor towns that already collect slip fees from boats to charge mega-yachts $10 for every linear foot in excess of 150 feet. The towns would keep 10% of the money but the rest would go into a "megayacht fund" to help communities pay for improvements to ferry service and public transportation as well as to mitigate sea-level rise.

Sen. Rick Bennett, an Oxford Republican who sponsored the bill, LD 115, said anyone who owns a 200-foot-long yacht can afford to pay an additional $500 per night to moor in a Maine harbor.

"Your average Mainer will not be impacted in any way by these new fees," Bennett said during a floor debate. "Super-yachts and mega-yachts are only owned by the super-wealthy. These ships often cost hundreds of millions of dollars to purchase and require tens of millions of dollars to operate each year. For example, the annual cost of owning a $400 million yacht would be enough to run a small hospital in the United States or to administer 10 million malaria vaccines in Africa."

But opponents of the bill countered that the owners, crew and guests of megayachts also spend big bucks in coastal towns on food, fuel and other items. Bennett's Republican colleague from Oxford County, Sen. Joseph Martin, said $10-per-foot doesn't mean much to such owners but it sends a discouraging message.

"I think that putting an extra tax on somebody like this that has a boat that comes in and spends all kinds of money, is quite small on part," Martin said. "We should just leave them alone, let them come in and spend all of the money they want to spend. They have plenty to spend."

The bill faces additional votes in both the House and Senate. But a similar measure passed the Legislature last year only to be "pocket vetoed" — along with several dozen other bills — by Democratic Gov. Janet Mills. The Maine Department of Environmental Protection testified against the bill during the committee process this year, saying it would create additional enforcement and administrative burdens for the agency.

The bill was also opposed by the Maine Municipal Association, the Maine Marine Trades Association and HospitalityMaine, the trade group representing the state's restaurant and lodging industries.