After a lengthy discussion on the previously discussed “boat tax” between the fiscal court, county attorney and local boat owner Leland True last Monday night, the fiscal court asked Judge/Executive Gary Robertson to invite representatives from the state’s department of revenue, attorney general’s office and department of fish and wildlife to next month’s fiscal court meeting to discuss what agency is responsible for enforcing the tax and what could be done to obtain these unpaid taxes in Russell County.
True, a Clark County native who lives in Russell County part-time and is president of the Clifty Creek Dock Owner’s Association, said he was sending out a letter to members of his association saying this tax was going to be enforced.
“It is only fair that they pay their share like we are,” True said. “I know the school system and the fiscal court needs money. I feel like you’re missing out on a big opportunity here.”
The issue of the “boat tax” was first brought up at the meeting of county leaders in October after a discussion on ways to bring in additional revenue through personal property taxes on watercraft in Russell County but magistrates were hesitant about having the law enforced locally due to fears that slip renters and other boaters would choose to dock at neighboring marinas in Pulaski, Clinton or Wayne counties, who also do not enforce the tax, leaving Russell County docks and taking their money with them.
The state law, which is not being enforced but that some are paying of their own choosing, allows counties to collect property taxes on houseboats and other watercraft which are docked, or stored, here for 60 days or longer.
Magistrates did say that if the law was enforced at all docks in all counties on Lake Cumberland they would definitely be for the enforcement but did not want to hamper tourism locally.
“This is KRS statute, it is a law,” True said. “These people are breaking the law. This applies to any watercraft other than a lifeboat.”
Public records show less than 20 boats documented as paying property taxes in Russell County, generating around $20,000 for the local county government and around $60,000 for the Russell County School District. The enforcement of this tax would swell those figures by hundreds of thousands of dollars if the state law was somehow enforced.
“Really, the attorney general should be enforcing this and getting the water patrol involved,” True said. “The marinas know every person on that list and what is being stored there…Russell County would be the biggest beneficiary.”
County Attorney Kevin Shearer told the court they could choose to pursue legal action and sue the local dock owners in hopes of obtaining the list of boat owners who rent slips but are not paying this aforementioned “boat tax” on their craft.
“The only way the fiscal court could enforce it would be to sue (the individual dock owners) to force them, via power of a court subpoena, to get a copy of those records,” Shearer said. “The question is whether or not you want to do that.”
The issue will most likely be taken up again at the February meeting of county leaders.