The new state budget has slashed Connecticut's boat tax in half, benefiting buyers, sellers and people who make a living working on boats alike.

If Gov. Dannel Malloy signs the new budget, the boat tax will drop from 6.35 percent to just under 3 percent.

Experts say due to the cost of the old boat tax, people were buying in Rhode Island or New York to save money.

"They're either going to pay $30,000 to the state of Connecticut or $18,000 to the state of New York," says Diana McCabe, of Petzold's Marine Center. "That's a lot of money."

The tax cut could cost the state about $5 million in its first year, but experts say added sales and usage will make up for the loss.