Internet Newsletter

From The 90 Day Yacht Club Guide to Ensenada

May/June 2006

Volume 4 , Number 5/6

 

A true traveler has no fixed plans and is not intent upon arrival®

True Traveler Publishing

P.O. Box 60023

San Diego, CA 92166

Phone:

(619) 857-0368

E-mail:

sitka@truetraveler.com

 

 

 

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50% OF THE SLIPS ARE EMPTY AND THE POOL IS DESERTED! THESE PHOTOS TAKEN 6-14-2006 HERE AT THE CORAL MARINA ILLUSTRATE THE EFFECTS OF THE CHANGE IN THE LAW TO ONE YEAR.

I ASK... WHY HAVE THE HISPANIC LEADERS IN THE CALIFORNIA LEGISLATURE ALLOWED THIS TO HAPPEN TO THEIR HOMELAND???

       A CALL TO ARMS!

NOW IS THE TIME TO BECOME PROACTIVE!

Will Californians Realize the Financial Benefits of the Club Again?

The 90 Day Rule is due to be AUTOMATICALLY re-instated on July 1 unless the California Lawmakers decide to vote to continue the current temporary 1 year statute, subject to an Impact Study; read the law as written on our Law Update Page. Please don't SLEEPWALK on this issue!!!

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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 1st  many 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.

 

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I am always doing that which I can not do, in order that I may learn how to do it. Click here for more "Picasso-isms" - Pablo Picasso

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BAJA 500 UNOFFICIAL RESULTS

Photo Credit: Doug Gould at http://bajawild.net

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 December 2005 Newsletter of 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 equipped race chase chopper.

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.

Photo Credits: Doug Gould at http://bajawild.net

 

SAN DIEGO YACHT CLUB OPENING DAY APRIL 23, 2006

         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.

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"When you come to a fork in the road, take it."
  Click here for more "Yogi-isms" - Yogi Berra

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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, Mexico...

 

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!

 

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"My wife and I were happy for twenty years. Then we met."
  Click here for more "Rodney-isms" - Rodney Dangerfield

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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!

          The senior 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 6-30-2006

          As of today the containers are still being held on the docks of Ensenada under a lien enforced by the Salvage Company 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?

         Mexican 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 penalties.

        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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