NOW is the time for
you to activate yourself and your local Yacht Club and contact your
California State legislators and tell him or her that the continuance of
the now imposed one-year statute is simply not working and your vote for
them in the next election depends on the return of the 90 Day Yacht Club
and the sales tax benefits it provides to the YOU, the prospective yacht
purchaser. As of April 1stmany
California districts and cities had the sales tax in these areas driven up
over the 8% threshold. This tax plus the property tax imposed on the sale
of a new yacht is double taxation and is a financial hardship that
prospective yacht buyers are simply not willing to take on if they must
keep their new yacht out of the state of California for the current
mandated one year period. As a
result of this law change from 90 days to one year, Ensenada marina
occupancy is nearing 50% full as opposed to the 100% full in March of last
year 14 months ago, 6 months after the change in the law. All those
boaters that bought before October 1, 2004 had 6 months to do the offshore
delivery and their 90 Day Yacht Club stay and March 2005 was the 6th
month after the change in the law. At that time yachts began to leave
Ensenada and very few newly purchased yachts have arrived to take their
place. Yes, we have a few extremely expensive large yachts that are here
for the one-year stay. But that is the exception as all the $300,000 to
$600,000 mid range priced yachts are not here filling slip space as before
because the savings spread over 12 months does not warrant the families’
new yacht being in remote Ensenada for a one-year period.
The 90 Day Yacht Club was the common name given to those who
decided to take an offshore delivery of their newly purchased yacht and
spend more than 90 days in another country. This performance of compliance
with the State of California Law relieved the new owner's responsibility
to pay the State sales tax on the purchase. The cost savings you enjoy by
taking advantage of this offshore delivery process involves saving of the
almost 8% California State Tax on the purchase price of the new yacht. As
of October 1, 2004 this 90 day statute was changed to the new boat owner
having to be out of the state of California for a time period of one year
in order to realize this sales tax savings. This is a temporary change in
the law, as the law as written is due to automatically re-instate the 90
Day statute July 1, 2006 subject to an impact study.
The recent events
surrounding the changing of the law stipulating the term of stay at the 90
Day Yacht Club had been brewing for a long time and were a direct result
of the misconstrued view of the law by California lawmakers that had been
on the books in California for many years. Unfortunately Ensenada has been
in the middle of the fray, as well as the fortunes of many workers on both
sides of the border who ready and repair the boats along with the marine
stores that sell the gear to the new boat owners.
The legislators had overestimated the total moneys to be gained by
changing the law as yacht sales have ground to a halt in California. A
boat buyer boycott has been formed not only adversely affecting the sales
tax thought to be realized by changing the law, but also has greatly
lessened the amount of filter down trade benefits created by the sale of a
new or used yacht in the California and Ensenada marines industries. Boat
buyers are simply buying in other states that offer a more attractive
sales tax haven, or they are not buying at all, waiting for the law to
revert back to 90 days on July 1st 2006.
Those in the Sacramento house of law would be wise to let the law
automatically revert to 90 days without any action necessary from them
what so ever. In this case inaction will be the greatest form of action
for yacht sales in California! At that time the legislators can just walk
away from the 90 Day Yacht Club controversy and the subject will never be
visited again in the future. And we will again see many new happy mariners
arriving in Ensenada, filling the local marinas, and enjoying the benefits
of the 90 Day Yacht Club.
Read the October 2005 Sea Magazine
article about the impact of the 90 day law change printed by permission in
our December 2005 Newsletter.
THE LUXURY TAX ON YACHTS IN THE 1990’S
Will History Repeat the Results of the Dissolute Intent of that Fiasco?
Read our article about the similar effects of the ill-conceived Luxury
Tax levied on consumers in the last decade. A buyer boycott ensued,
much as we are experiencing now in the California yacht industry. You will find
the above entitled article in our March 2005 Newsletter.
I am always doing that which I can
not do, in order that I may learn how to do it.
Larry Ragland and Brian Collins won the Trophy Truck race held recently
which started and finished here in Ensenada. This is Larry Ragland's 6th
win. Below are 2 photos of the Ragland car before the race. Followed by
a few photos of two of the other competitors in this exciting race held
every year along with the Baja 1000 in the fall. A True Traveler Baja survivalist
challenge for all involved.
The Monster truck driven by Alan Pflluger came in second only 7 and a
half minutes behind by corrected time statistics.
Once again the Terrible Herbst Buggie driven by Troy Herbst won it's
class for the 3rd time in a row.
More photos and an article after the final results are determined to be
included in our next newsletter. See our photos in the
Herbst winning #112 Buggie and the #19 Trophy Truck after it rolled and
finished 5th, after last years Baja 1000 race. Also posted, photos of a
high-tech, hi-def camera
A PERSONAL PROFILE OF THIS
AUTHOR FEATURED IN THE JULY 2006 SEA MAGAZINE
VIEW THE JULY SEA MAGAZINE PROFILE
ABOUT THIS AUTHOR, OUR BOOKS AND THIS WEBSITE! CLICK THIS LINK TO READ THE
ARTICLE - SEA MAGAZINE!
This is a 57 foot 1970's vintage
Bertram yacht I just completed managing for 10 weeks as Captain while she
was here in Ensenada for upgrades and repairs. I was stationed on board with
a laptop and in touch with the owner at all times via wireless internet
connection while he paid the bills in the states at his demanding job. There
were a crew of 50 or more Mexicans aboard during the time the yacht was here
in Ensenada, performing all phases of work necessary to keep a yacht of this
vintage in bristol condition. Mechanics, tapestry workers, yard workers,
carpenters, painters, and electronics guys all contributed to the
success of this venture.
On April 23rd I was invited to photograph the San Diego Yacht Club
Opening Day ceremonies by two major national and global publications. As
a result of the photos I shuttered and shared with club personnel, I will have a
number of these photos published also in the Mainsheet, the SDYC club
publication. If you would like to have copies of these sample photos e-mailed
to you in larger format or a CD of the total of the event's photo
chronicle, please contact me via the Feedback Form page on this website.
If you are satisfied with the photos presented on this page and use
copies of the photos downloaded for your own enjoyment, you may use them
for only your own personal use. Any other intended use will require my
written permission. This is a free website supported by donations.
Please send your donations to the address listed at the top of the blue
left margin of this newsletter. An e-mail address is also listed in the
blue margin if you would like to e-mail me directly.
The new San
Diego Yacht Club Commodore Betty
Sue Sherman with her proud Dad, famous
world wide known yacht racer Carl Eichenlaub.
"When you come to a fork in the
road, take it."
Click here for more "Yogi-isms" -
ROAD TRIP PHOTOS OF OUR JOURNEY TO
SEATTLE TO PROMOTE THE 90 DAY YACHT CLUB GUIDE TO ENSENADA
During a trip north to
visit all the stores that carry our books, we were gifted with 80 degree
weather all the way up the Pacific coast at the end of May and beginning
of June. A stop for fish and chips at a small Washington coastal town
yielded a strange sight and sound, local kids with sunburns...
complaining about how hot it was! Glad we took the 'vertable! Driving
through Big Sur yielded yet another strange sight, more of these
Chrysler convertibles than any other car seen driving along this
picturesque area. When I owned my Porsche 911 Targa, seemed that was the
most often passed and flashed car in these parts. This fun trip gave us
a spectacular unexpected benefit from writing a book about Ensenada,
AND PHOTOS OF OUR 90 DAY YACHT CLUB BOOK
DISPLAYS IN SOUTHERN CALIFORNIA WEST MARINE STORES
Marina Del Rey West Marine Book Display
Newport Beach West Marine Book Display
San Diego West Marine Book Display
A VERY SPECIAL PLACE WAS SHARED FOR OUR
GRINGO GROUP EASTER DINNER PARTY THIS YEAR
Tucked in a
secret spot out on Punta Banda, we, the few and lucky, were admitted to
this premium estate for an evening Easter pot luck. For as far as you
can see, there are no other residences in all directions, and the
nearest road is at the top of the hill behind the house. Complete with
tennis courts and its own beaches at the bottom of the cliffs it resides
upon, this is a prime example of some of the premier properties to be
found in the Ensenada area. Price for the structure and adjoining land,
as compared to California, pennies on the dollar, or I should say pesos
on the dollar... The friendly folks and the bountiful feed made this an
Easter none in attendance will soon forget! The one thing the lady of
the house misses most living in this remote location? Shopping Centers!
"My wife and I were happy for twenty
years. Then we met."
Click here for more "Rodney-isms" -
TAURUS AUTO DETAIL AND THE CREW
Number 30 on our Ensenada Site Map in our books.
A visit to Felipe
and his 4 brothers will soon have you driving down the road with a
vehicle that looks and smells new again. I needed to change my timing
belt this past month, and wanted to have the engine compartment cleaned.
Due to the arrival of the new Costco, the Taurus crew now have a car
wash pressure spray compressor and a dryer blower. With these new tools,
and the employment of over 10 guys (they all would not pose for the
photo above), the engine cleaned and the body washed was done in a
little over an hour. After this quick pit stop, I was back on the road hummin'. All this for 40$ which was such a great deal I had enough left
over to give them 50$ in order to include a tip so all could have a
little extra something for their fine work.
When I bought my Nissan
pre-owned truck 2 years ago, these guys went through the rig with a fine
toothed comb. They actually went so far as to remove all the seats from
the vehicle and stripped the body down as far as possible before they
started the cleaning process. This whole job included wax, and an engine
clean, and was under 150$ including the tip!
brother and boss, Felipe, you will quickly recognize as he is a one
armed man. But this does not stop him from doing a large part of the
work. It also does not stop him from his true passion, fishing for the
big ones. Check out his shop club house, and have him show you his many
trophy fish and lures, each with their own special story.
APL PANAMA CONTAINER DOCK MOVEMENT UPDATE
As of today the
containers are still being held on the docks of Ensenada under a lien
enforced by the
in lieu of payment and successful settlement of the money demands being
waged by all the parties involved in this unfortunate maritime accident.
We will keep an eye on the situation and if any change is seen
physically in box locations and ship loading for forwarding, we will let
you know ASAP.
Containers will be available for pick up once cargo owners post security
required under applicable salvage and General Average rules. Claims
specialists and insurance adjustors will now determine the total cost of
the APL Panama grounding and apportion costs among the ship's owners,
charterer and cargo owners in accordance with applicable legal rules.
A MEXICAN DESTRUCTION DERBY EVENT
SURVIVOR - JUST BARELY
MEXICO TO ALLOW THE USE OF HARD DRUGS?
President Vicente Fox refused May 3rd to sign a bill that
would legalize the use of nearly every drug and narcotic sold by the
same Mexican cartels he's vowed to fight during his five years in
office. The list of illegal drugs approved for personal consumption by
Mexico's Congress last week is enough to make one dizzy — or worse.
Cocaine. Heroin. LSD. Marijuana. PCP. Opium. Synthetic opiates.
Mescaline. Peyote. Psilocybin mushrooms. Amphetamines. Methamphetamines.
And the per-person amounts approved for possession by anyone 18
or older could easily turn any college party into an all-nighter: half a
gram of coke, a couple of Ecstasy pills, several doses of LSD, a few
marijuana joints, a spoonful of heroin, 5 grams of opium and more than 2
pounds of peyote, the hallucinogenic cactus.
The law would be among the most permissive in the world, putting
Mexico in the company of the Netherlands. Critics, including U.S. drug
policy officials, already are worrying that it will spur a domestic
addiction problem and make Mexico a narco-tourism destination.
Even the Netherlands, famous for coffeehouses that sell small
quantities of potent marijuana and hashish, forbids the possession and
sale of narcotics. Colombia allows personal use of marijuana, cocaine
and heroin, but not LSD or PCP.
Selling drugs or using them in public still would be a crime in
Mexico. Anyone possessing drugs still could be held for questioning by
police, and each state could impose fines even on the permitted
quantities, the bill stipulates. But it includes no imprisonment
Fox, whose term
ends in December and who is barred by law from seeking reelection, has been
considered a strong ally of the U.S. anti-drug effort. He has said the
current drug war was triggered when he began arresting top leaders,
including Osiel Cardenas, who allegedly runs the Gulf cartel from prison.
In the last year, Fox has called in the army to patrol the border
city of Nuevo Laredo when it became clear that local police were in league
with traffickers. And he has promised to extradite drug smugglers facing
trial in the U.S. Consequently, many U.S. officials, and Mexicans, are
scratching their heads over the proposed new law.
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