Even wealthy look for deal on high-end boats [UPDATED]

Even the wealthy like a deal.

Business at the Duffy electric boats dealership in Newport Beach has been slow, said salesman Jim Roberts. But customers still care about any extra taxes they are going to pay on such a big-ticket item, he said.

After all, prices range from a basic Duffy 14 cruiser, which goes for a mere $19,900, to a Duffy 22 Cuddy, which lists for $49,700, complete with an all-teak interior, carpeting, stereo and vanity sinks.

“Most of the people who buy these pay cash for them,” Roberts said. But that doesn’t mean they are not concerned about paying a few hundred dollars more in taxes.

“Obviously it has an effect on the consumer, who at this moment is looking to deal,” he said of the increased sales tax. So they might ask for any unforeseen costs to be discounted, he said.

But even that may not be enough to boost business. Each boat at the dealership carried a sign that advised customers to “See Salesman for Further Discount,” while the “March Madness Sale” sign was about to be replaced by the dealership’s “39th Anniversary Sale” sign.

A 1 percentage point increase in California's sales tax takes effect today. It brings the state sales tax to 8.25% -- but combined with local taxes, consumers in some cities are paying as much as 10% or more. The average local tax rate is now 9% -- one of the highest in the nation. Times reporters are blogging reactions to the tax hike today. For more details about the tax hike and its impact, read Tax increases stack high in Pico Rivera and It's your last weekend to shop before the sales tax increase.

UPDATED, 5:06 p.m.: An earlier version of this post incorrectly stated the state portion of the sales tax was 6%.

-- Mike Anton