"While the Kentucky Department of Revenue is starting with 2005 tax bills, it has the legal authority to impose back-taxes up to five years. Midkiff said the state hasn't made a decision whether or not to do that.
Though there are several fees associated with registering a boat, states that boarder Kentucky, such as Indiana, Ohio and Tennessee have no annual property tax on boats.
Karen Chrisman, an attorney with Lexington, Ky.-based law firm McBrayer, Mcginnis, Leslie and Kirkland, is working against the tax with a group known as Kentucky Documented Boaters Incorporated.
"They see this as an attack on tourism in Kentucky," Chrisman said.