In the wake of all the negative publicity surrounding potential state sales tax on his new yacht, Sen. John Kerry (D-Mass.) says he'll pay Massachusetts taxes on the vessel … if the state asks.
To give the one-time presidential candidate a break, he's in the clear right now when it comes to Massachusetts sales and use tax on his $7 million sloop.
The boat was built in Rhode Island and currently is berthed there. From a tax standpoint, that's great for Kerry, since in 1993 the Ocean State eliminated its sales tax on yachts.
But if Kerry sails the Isabel into his home state waters and docks it in Massachusetts for any amount of time, he could be looking at Bay State use tax charges.
"Whatever the Department of Revenue determines that he owes in Massachusetts taxes, he will pay," Kerry aide Brigid O'Rourke told the Boston Globe last night. "He will absolutely pay any and all taxes that he is found to owe."
If Massachusetts tax officials determine Kerry owes sales tax, it'll cost him almost half a million dollars. The state also levies annual excise taxes on yachts, which would get Kerry another $70,000 tax bill.
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- Don't forget your state taxes!
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joetaxpayer
Dear Massachusetts,
I live here. We need the money. Please remember to ask. John’s not returning my calls.
Love,
Joe