24 Jul 10
1 edit
http://bostonherald.com/track/inside_track/view.bg?articleid=1269698
Sen. John Kerry skips town on sails tax
Sen. John Kerry, who has repeatedly voted to raise taxes while in Congress, dodged a whopping six-figure state tax bill on his new multimillion-dollar yacht by mooring her in Newport, R.I.
Isabel - Kerry’s luxe, 76-foot New Zealand-built Friendship sloop with an Edwardian-style, glossy varnished teak interior, two VIP main cabins and a pilothouse fitted with a wet bar and cold wine storage - was designed by Rhode Island boat designer Ted Fontaine.
But instead of berthing the vessel in Nantucket, where the senator summers with the missus, Teresa Heinz, Isabel’s hailing port is listed as “Newport” on her stern
Why? Escaping taxes! He sure likes to raise taxes on others, but isn't willing to pay them himself. Typical.
24 Jul 10
Originally posted by EladarIs anyone surprised? Congress has an approval rating that is almost non-existant, and they wonder why only 11% of the American public have faith in them... jeez, time to clean house..
[b]Sen. John Kerry skips town on sails tax
Sen. John Kerry, who has repeatedly voted to raise taxes while in Congress, dodged a whopping six-figure state tax bill on his new multimillion-dollar yacht by mooring her in Newport, R.I.
Isabel - Kerry’s luxe, 76-foot New Zealand-built Friendship sloop with an Edwardian-style, glossy varnished teak interior, ...[text shortened]... axes! He sure likes to raise taxes on others, but isn't willing to pay them himself. Typical.
24 Jul 10
1 edit
Originally posted by EladarLast I checked, if you buy something in Rhode Island you don't have to pay Massachusetts taxes on it.
Sen. John Kerry skips town on sails tax
Sen. John Kerry, who has repeatedly voted to raise taxes while in Congress, dodged a whopping six-figure state tax bill on his new multimillion-dollar yacht by mooring her in Newport, R.I.
Isabel - Kerry’s luxe, 76-foot New Zealand-built Friendship sloop with an Edwardian-style, glossy varnished teak interior, ...[text shortened]... axes! He sure likes to raise taxes on others, but isn't willing to pay them himself. Typical.[/b]
24 Jul 10
Originally posted by no1marauderMost state tax forms ask you to pay taxes on items purchased out of state. That is a joke, no one honestly does that.
Last I checked, if you buy something in Rhode Island you don't have to pay Massachusetts taxes on it.
We had many people buy and register cars here in Oregon, and dodge state taxes for awhile,, Utah cracked down on it hard.
24 Jul 10
Originally posted by no1marauderHowever, according to Bliss, if Kerry berths the Isabel in Massachusetts waters within six months of purchasing the boat, there’s a “presumption of use” and the Heinz-Kerrys would have to walk the plank and pony up to the Bay State. After six months, should the boat change its berth to, say, Nantucket, then it’s up to the state to go after them for the taxes, Bliss added.
Last I checked, if you buy something in Rhode Island you don't have to pay Massachusetts taxes on it.
Where the boat berths is important if you are trying to avoid taxes. It isn't simply where you buy the boat. He is going to use the boat in Nantucket, it is his patriotic duty to pay his taxes.
24 Jul 10
1 edit
Originally posted by EladarI read that too, but it doesn't make any sense to me. How can you be charged sales tax by a State for an out of State purchase? The same article says he brought the yacht in Rhode Island. If I pick up a six pack of Miller High Lite when I'm visiting friends in New Hampshire, I don't pay NY tax on it if it's still in my cooler (unlikely but possible) when I return to NYS.
However, according to Bliss, if Kerry berths the Isabel in Massachusetts waters within six months of purchasing the boat, there’s a “presumption of use” and the Heinz-Kerrys would have to walk the plank and pony up to the Bay State. After six months, should the boat change its berth to, say, Nantucket, then it’s up to the state to go after them for the ta ...[text shortened]... the boat. He is going to use the boat in Nantucket, it is his patriotic duty to pay his taxes.[/b]
Maybe some tax expert can clear this up.
24 Jul 10
Originally posted by no1marauderThe state of Utah had a section just for declaring purchases in other states....
I read that too, but it doesn't make any sense to me. How can you be charged sales tax by a State for an out of State purchase? The same article says he brought the yacht in Rhode Island. If I pick up a six pack of Miller High Lite when I'm visiting friends in New Hampshire, I don't pay NY tax on it if it's still in my cooler (unlikely but possible) when I return to NYS.
Maybe some tax expert can clear this up.
As far as beer goes, there are times when the Utah state troopers set up road blocks between Evanston and the border. They stop cars and look for liquor. If it does not have the Utah tax stamp on it,, guess what? Some trooper has beer for the weekend. My brother was stopped, and they told him you can either open the trunk, or wait until I get a warrant....
4th of july is a real good one,, wyo has great fireworks and stores all along the border,, it really keeps the troopers busy. Now they have beer and bottle rockets...
24 Jul 10
Originally posted by EladarOK, technically it's a "use tax" not a "sales tax"; that makes a bit more sense. Apparently where Kerry docks it permanently makes no difference so this is a typical right wing mountain out of a molehill; it appears he has berthed the yacht in Massachusetts within six months after he brought it and will have to pay the taxes at the end of the year. http://www.bostonherald.com/track/inside_track/view.bg?articleid=1269894&srvc=rss
According to the article, the reason is 'pressumption of use'.
24 Jul 10
Originally posted by Hugh Glasspeople living in Vancouver, Washington (southern border) have the best of both worlds: no state income tax, and shopping in Portland, OR where there's no sales tax.
Most state tax forms ask you to pay taxes on items purchased out of state. That is a joke, no one honestly does that.
We had many people buy and register cars here in Oregon, and dodge state taxes for awhile,, Utah cracked down on it hard.
24 Jul 10
Originally posted by no1marauderhttp://www.boe.ca.gov/sutax/faqtrans.htm
I read that too, but it doesn't make any sense to me. How can you be charged sales tax by a State for an out of State purchase? The same article says he brought the yacht in Rhode Island. If I pick up a six pack of Miller High Lite when I'm visiting friends in New Hampshire, I don't pay NY tax on it if it's still in my cooler (unlikely but possible) when I return to NYS.
Maybe some tax expert can clear this up.
FAQ - Use Tax on Purchases of Vehicles, Vessels, Aircraft
1. What is the difference between sales tax and use tax?
2. How does the Board receive information about my purchase?
3. Are transfer by barter, exchange, and trade-in subject to tax?
4. What tax rate applies?
5. When is the use tax due?
6. How do I report and pay use tax on a documented vessel or an aircraft?
7. How do I report and pay use tax on a vehicle or undocumented vessel?
8. Are there penalties and interest due if my payment is late?
9. Is there a provision for reduction or elimination of penalties and interest?
10. Can I dispute or appeal a Board determination of tax due?
11. How do I request a refund?
12. What if I paid tax to a broker? Who is responsible?
13. Where can I get more information?
14. Related Use Tax Resources
1. What is the difference between sales tax and use tax?
In California, transfers of tangible personal property for a consideration (sales and purchases) are subject to sales tax or use tax unless the law provides an exception (that is, an exemption or exclusion). Although the rates are generally the same, sales tax is imposed on the retailer for the privilege of selling tangible personal property in this state. The retailer may collect reimbursement from their customer if the contract of sale so provides. Although this is usually invoiced as "sales tax," it is actually sales tax reimbursement. Whether or not the retailer collects reimbursement, the retailer is liable for the tax due.
Use tax is generally imposed on the purchaser of tangible personal property that is used, consumed, or stored in this state. Sales of vehicles, vessels, and aircraft by licensed dealers are usually subject to sales tax, for which sales tax reimbursement is collected at the time of purchase. Use tax applies to the cost of vehicles, vessels, and aircraft purchased from non-dealers (for example, private parties) or from outside California for use in this state. Use tax also applies to most leases of tangible personal property. Private party sales or brokered transactions are normally subject to use tax. If the first use of the property occurs in California, use tax may apply even if the purchaser is not a resident of the state. The sales and use tax are "mutually exclusive," which means that either sales tax or use tax applies to a single transaction, but not both.
25 Jul 10
Originally posted by no1marauderYou should pay tax on it.
I read that too, but it doesn't make any sense to me. How can you be charged sales tax by a State for an out of State purchase? The same article says he brought the yacht in Rhode Island. If I pick up a six pack of Miller High Lite when I'm visiting friends in New Hampshire, I don't pay NY tax on it if it's still in my cooler (unlikely but possible) when I return to NYS.
http://www.tax.state.ny.us/pdf/2008/inc/it150_201i_2008.pdf (page 85)
You owe sales or compensating use tax if you:
• purchased an item or service subject to tax that is delivered
to you in New York State without payment of New York State
and local tax to the seller; or
• purchased an item or service outside New York State that is
subject to tax in New York State (and you were a resident of
New York State at the time of purchase) with subsequent use
in New York State.
...
Example 2: You purchased a book on a trip to
New Hampshire that you brought back to your residence
in Nassau County, New York, for use there.
...
Failure to pay sales or use tax may result in the imposition of
penalty and interest. The Tax Department conducts routine
audits based on information received from third parties,
including the U.S. Customs Service and other states.
Don't worry. I'm sure they'll let you keep posting from prison. 😛
Actually, NY is nice enough to allow you to estimate sales tax on purchases less than $1,000 based on a pre-determined formula.