Sunday, July 25, 2010

Sen. Kerry: Tax-Dodger?

Senator John Kerry (D-MA) may be in tax trouble for docking his new $7M yacht at his Massachusetts home.

The Friendship yacht [was] designed by Ted Fontaine of Portsmouth but built in New Zealand... Under law, if a boat owner berths the vessel in Massachusetts waters within six months of purchasing the boat, there’s a “presumption of use,” and the owner must fork over the 6.25 percent sales tax to the commonwealth. Local excise taxes also are due.

Sources said Isabel - with its Edwardian-style, glossy varnished teak interior, two VIP main cabins and a pilothouse fitted with a wet bar and cold wine storage - sold for something in the neighborhood of $7 million. That means Kerry would owe approximately $437,500 to his cash-strapped home state. Nantucket, his summer playground, would be due annual excise taxes of about $70,000.

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