The Taxes That Come Back To Boaters

The best return on tax dollars paid by recreational boaters is now up for reauthorization before Congress. For the past 75 years, what is now known as the Sport Fish Restoration and Boating Trust Fund has financed boat ramp construction and repair, hatcheries management and fish stocking, wetlands restoration and habitat improvement, and boating safety programs – all funded by boaters themselves.

Trust Fund revenue comes directly from a 10% tax on fishing gear, 3% tax on electric motors, and import duties on boats – but about half of funding comes from a special fuel tax that only boat operators pay. This user-pay/user-benefit grant program is administered by the U.S. Fish & Wildlife Service and the U.S. Coast Guard, and it’s been championed and lobbied for by BoatU.S. since its inception to make sure the funds stay true to their original intent. The Trust Fund annually returns about $700 million in taxes paid by boaters and anglers. Last year, the fund paid for:

• 9,000 public boating and fishing access areas to be maintained and operated nationwide.
• 200 species of sport fish managed, studied, and monitored by state fish and wildlife agency biologists. >> 320 hatcheries that stock more than 1 billion fish annually (more than 75 different species).
• 850,000 students receiving aquatic education and an introduction to fishing.

“For BoatU.S. members, funding under the Clean Vessel Act (CVA), the Boating Infrastructure Grant (BIG) program, and the Boating Access Program, all parts of the Trust Fund, deliver the most for recreational boating,” explains David Kennedy, manager of BoatU.S. Government Affairs. “It’s part of a clear-cut cycle of paying fuel tax that comes right back into our marine ecosystem.”

CVA funding goes to state boating agencies for the construction, renovation, operation, and maintenance of pumpout stations and waste reception facilities. Since 2020, CVA has awarded $79.6 million, and 748 pump-out boats and fixed stations were built, renovated, or replaced.

The BIG program provides funding to states to enhance access to recreational, cultural, historic, and natural resources in the United States for boats 26 feet or longer. Since 2020, $53.8 million in BIG funding has gone to 50 projects, including the construction of 32,000 linear feet of dock and 925 transient slips.

Over the last three-quarters of a century, the Trust Fund has had a cumulative positive effect on recreational boating, as evidenced by decreased boating deaths, injuries, and accidents; cleaner waters; improved access to boating and fishing opportunities; bolstered fish habitat conservation; and educating the next generation about the importance of maintaining our aquatic resources.

The Trust Fund doesn’t expire until September 30, 2026, but bipartisan legislation to reauthorize it for another five years was introduced in June this year by U.S. Reps. Rob Wittman (R-Va.) and Debbie Dingell (D-Mich.). The fund is reauthorized as part of the Highway Trust Fund reauthorization, as the motorboat fuel tax formula is tied to the overall highway fuel tax. This reauthorization is slightly more complicated than previous reauthorization efforts because the House bill falls under three committees of jurisdiction: Ways & Means, Natural Resources, and Transportation & Infrastructure. But BoatU.S. will stay engaged in the legislative process as the federal budget takes shape, and we’re focused on making sure the funds stay directed toward improving safety and accessibility for the boaters who paid for it