Embattled Kerry to pay taxes on luxury yacht
By Gayle Fee and Laura Raposa
Tuesday, July 27, 2010 - Updated 3 days ago
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With his reputation on the rocks, Sen. John Kerry informed tax collectors today he will cough up some $500,000 in state and local taxes for his ultra-luxe yacht Isabel.
?As we?ve said from the beginning, we have always complied with tax laws and we always will. ... The payment is being made promptly,? Kerry said in a statement to the Herald today.
?We?ve reached out to the Massachusetts Department of Revenue and made clear that, whether owed or not, we intend to pay the equivalent taxes as if the boat?s home-port were currently in Massachusetts,? Kerry added.
The Herald first reported Friday that Kerry did not pay the state?s 6.25 percent sales tax on his 76-foot luxury yacht that he bought in March for $7 million and now docks in sales-tax free Rhode Island.
A Kerry spokesman claimed the old sea dog wasn?t avoiding paying his fair share.
Kerry appeared to have sailed clear past a $437,000 tax bill to his cash-strapped state by mooring the Isabel in Rhode Island. He also could owe another $70,000 in annual excise taxes.
A Kerry spokesman previously told the Herald the Isabel was moored in Newport for long-term maintenance and not to take advantage of the Ocean State?s tax-free climate. ?The senator would pay any taxes he?s found to owe,? the spokesman said.
But that didn?t float with one Bay State official.
State Treasurer Tim Cahill slammed the sea-faring Kerry earlier today saying he should pay up like everybody else.
?I don?t think that the state should treat anyone differently - senators, congressmen or regular people,? said Cahill, who is running for governor as an independent.
?It looks to me like he?s avoided taxes by registering in Rhode Island,? Cahill added today.
The Ocean State repealed its Boat Sales and Use Tax back in 1993, making the tiny state a haven - like the Cayman Islands, Bermuda and Nassau - for tax-skirting luxury yacht owners.
But, according to state law, if Kerry brings that boat into Massachusetts waters in the first six months of owning it, there is a ?presumption of use? and he would have to pony up some $437,500 to the state.
When asked yesterday at a Weymouth appearance if he had brought the Isabel into Bay State waters, Kerry replied, ?It depends on who owns it.? As the press pressed for more, Kerry added, ?Can I get out of here, please.?
The senator and his wife, ketchup heiress Teresa Heinz, had the boat built in New Zealand.
Kerry?s boat was spotted on Nantucket, where he and the missus have a summer home, over the July 4 holiday weekend. And Kerry was seen coming ashore off the Isabel in Edgartown a couple of weeks later.
The more Kerry changes, the more he stays the same:
By Gayle Fee and Laura Raposa
Tuesday, July 27, 2010 - Updated 3 days ago
EmailE-mail PrintablePrint Comments(256) Comments LargerSmallerText size Bookmark and Share Share Buzz up!
With his reputation on the rocks, Sen. John Kerry informed tax collectors today he will cough up some $500,000 in state and local taxes for his ultra-luxe yacht Isabel.
?As we?ve said from the beginning, we have always complied with tax laws and we always will. ... The payment is being made promptly,? Kerry said in a statement to the Herald today.
?We?ve reached out to the Massachusetts Department of Revenue and made clear that, whether owed or not, we intend to pay the equivalent taxes as if the boat?s home-port were currently in Massachusetts,? Kerry added.
The Herald first reported Friday that Kerry did not pay the state?s 6.25 percent sales tax on his 76-foot luxury yacht that he bought in March for $7 million and now docks in sales-tax free Rhode Island.
A Kerry spokesman claimed the old sea dog wasn?t avoiding paying his fair share.
Kerry appeared to have sailed clear past a $437,000 tax bill to his cash-strapped state by mooring the Isabel in Rhode Island. He also could owe another $70,000 in annual excise taxes.
A Kerry spokesman previously told the Herald the Isabel was moored in Newport for long-term maintenance and not to take advantage of the Ocean State?s tax-free climate. ?The senator would pay any taxes he?s found to owe,? the spokesman said.
But that didn?t float with one Bay State official.
State Treasurer Tim Cahill slammed the sea-faring Kerry earlier today saying he should pay up like everybody else.
?I don?t think that the state should treat anyone differently - senators, congressmen or regular people,? said Cahill, who is running for governor as an independent.
?It looks to me like he?s avoided taxes by registering in Rhode Island,? Cahill added today.
The Ocean State repealed its Boat Sales and Use Tax back in 1993, making the tiny state a haven - like the Cayman Islands, Bermuda and Nassau - for tax-skirting luxury yacht owners.
But, according to state law, if Kerry brings that boat into Massachusetts waters in the first six months of owning it, there is a ?presumption of use? and he would have to pony up some $437,500 to the state.
When asked yesterday at a Weymouth appearance if he had brought the Isabel into Bay State waters, Kerry replied, ?It depends on who owns it.? As the press pressed for more, Kerry added, ?Can I get out of here, please.?
The senator and his wife, ketchup heiress Teresa Heinz, had the boat built in New Zealand.
Kerry?s boat was spotted on Nantucket, where he and the missus have a summer home, over the July 4 holiday weekend. And Kerry was seen coming ashore off the Isabel in Edgartown a couple of weeks later.
The more Kerry changes, the more he stays the same:
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