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Kerry Is Avoiding $450K In ‘Yacht Taxes’

From the Boston Herald:

Sen. John Kerry skips town on sails tax

By Gayle Fee and Laura Raposa  |   Friday, July 23, 2010 

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.

Mr. Kerry can’t even ‘Buy American.’ How many Massachusetts yacht builders are out of work?

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.

Could the reason be that the Ocean State repealed its Boat Sales and Use Tax back in 1993, making the tiny state to the south a haven – like the Cayman Islands, Bermuda and Nassau – for tax-skirting luxury yacht owners?

Lest we forget, Mr. Kerry is not above having Cayman Islands tax dodging accounts, either.

Cash-strapped Massachusetts still collects a 6.25 percent sales tax and an annual excise tax on yachts. Sources say Isabel sold for something in the neighborhood of $7 million, meaning Kerry saved approximately $437,500 in sales tax and an annual excise tax of about $70,000

[S]tate Department of Revenue spokesguy Bob Bliss confirmed the senator “is under no obligation to pay the commonwealth sales tax.”

But back in 2006, then-gubernatorial candidate Christy Mihos took some flack for avoiding some $23,000 in Bay State sales tax and $1,320 in local excise taxes by berthing his motor yacht in Rhode Island. But Mihos paid just $475,000 for his 36-foot vessel Ashley and readily admitted that he used the boat at his West Yarmouth summer home…

Taxes, like the rest of our laws, are for the little people.

This article was posted by Steve on Saturday, July 24th, 2010. Comments are currently closed.

6 Responses to “Kerry Is Avoiding $450K In ‘Yacht Taxes’”

  1. canary says:

    Examiner: MA Senator John Kerry docks $7 million dollar yacht in RI to save $500,000 in sales and excise taxes

    No Sales Taxes on Boats in Rhode Island

    by Donna Diegel July 23, 2010

    Rhode Island is a big tax haven when it comes to sales taxes on boats. Teresa Heinz and Massachusetts Sen. Kerry’s 76-foot sloop “Isabel”, will be berthed in Newport, RI, saving the couple over half a million dollars in combined MA sales taxes and annual excise taxes.

    By saving tax money docking his boat in Newport, Rhode Island, Kerry’s boat sales tax savings will no doubt hurt his home state of Massachusetts in lost tax revenue.

    According to the Boston Herald, “Cash-strapped Massachusetts still collects a 6.25 percent sales tax and an annual excise tax on yachts. Sources say “Isabel” sold for something in the neighborhood of $7 million, meaning Kerry saved approximately $437,500 in sales tax and an annual excise tax of about $70,000. The senior senator’s chief of staff David Wade denied the old salt was berthing his boat out of state to avoid ponying up to the commonwealth.

    http://www.examiner.com/x-31031-Providence-Headlines-Examiner~y2010m7d23-MA-Senator-John-Kerry-docks-7-million-dollar-yacht-in-RI-to-save-500000-in-sales-and-excise-taxes

    I suppose Kerry smogs the air flying his private plane to RI when he wants to sail.

    • U NO HOO says:

      Shouldn’t Kerry pay a “good intent” stipend to MA as the Steinbrenner heirs are being asked to do because there is no inheritance tax this year?

  2. proreason says:

    Rich people don’t pay taxes.

    They write the tax codes.

    How long will you put up with that?

    • heykev says:

      Granted, the rich never pay taxes. That is left for the rest of us.

      But what i believe really shows his true colors is his purchase of a boat built in NEW ZEELAND. I did a very quick Google search and found over 50 boat builders in Massachusetts. Kerry really does not care about employing people in his own state. He’d rather employ people in another country to build his boat. That $7 million would go a long way to support families here in the USA

      Like most liberals, it’s do what I say and not as I do.

      Hopefully Pro, we will have to put up with this only until November.

  3. Rusty Shackleford says:

    I wonder how swift this new boat is….


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