The whole of Massachusetts – nay, the world – can issue a collective sigh of relief now: Yachtgate has finally come to an end. Senator John F. Kerry (D-MA) has announced that he will “voluntarily” pay $500,000 to the Massachusetts Department of Revenue for the use of his yacht.
Kerry’s luxury yacht is reportedly worth $7 million (yes, the mind reels, doesn’t it?). The Massachusetts state Senator created quite a controversy when it surfaced that he had been docking the yacht in Rhode Island, not in Massachusetts. Rhode Island does not have a sales and use tax on boats, while Massachusetts does. Under Massachusetts law, residents who buy boats out of state but use them in the Bay State must pay use tax. The tax is worth 6.25% of the value of the yacht. There is an additional $70,000 annual excise tax due if the yacht is docked in a Massachusetts port.
Sen. Kerry denies that he was trying to avoid tax in his home state. His spokesman has advised that the boat was designed and purchased from a Rhode Island company, which was where Kerry intended to keep the boat. The boat was registered in March 2010 in Newport, Rhode Island.
Despite Kerry’s assertions, the Massachusetts Department of Revenue had been making noise about launching an investigation into whether Kerry was using the boat in his home state. Kerry’s “voluntary” payment of the taxes means that no investigation will be conducted.
As for the boat? My, she was yar.
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Well…almost over. Let’s wait and see if he actually pays the tax.
Nice Philadelphia Story reference.
However, the actual nautical term that Katharine Hepburn uses is “yare” (and is pronounced “yar”).
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