It doesn't matter who owns it, the Jones Act is crystal clear in that any boat which sails between any two US Ports must be:
My case is about the Jones Act angle, not the tax angle.
It doesn't matter who owns it, the Jones Act is crystal clear in that any boat which sails between any two US Ports must be:
“Exemptions are available for boats that carry less than 6 and 12 passengers. Highly unlikely for a multi-million dollar 75 footer.
My case is about the Jones Act angle, not the tax angle. “
This sail boat is very un-likely to carry 12 passengers, except on day trips. there isn’t enough room on board for enough staterooms.
I can tell you that foreign built boats are chartered in US waters all of the time, and a 75 foot boat with Captain and crew is not particularly large or at all unusual in the charter business. I seriously doubt that chartering this boat will constitute a Jones Act violation.
I have no doubt that Kerry is trying to avoid the Massachusetts sales and excise tax, but he is by no means assured of success. In my home state of Maryland, a similar situation exists with respect to the State of Delaware. Delaware has no sales tax, and somebody buying a boat in Maryland can save the excise tax (which was 5 percent when I bought my boat but I think is now 6 percent) by buying the boat in Delaware and using a Delaware hail port in her documentation. However, Maryland is very aggressive about going after these boat owners if the boat shows up in Maryland waters with any regularity. The Maryland taxing authorities regularly send investigators to marinas to check the names and hail ports of boats docked there. They pay particular attention to boats from Delaware that have no Maryland stickers. Massachusetts undoubtedly does the same sort of thing with respect to Rhode Island. If the boat begins to show up in Nantucket, Kerry will get a tax bill.
I can tell you that foreign built boats are chartered in US waters all of the time, and a 75 foot boat with Captain and crew is not particularly large or at all unusual in the charter business. I seriously doubt that chartering this boat will constitute a Jones Act violation.
I have no doubt that Kerry is trying to avoid the Massachusetts sales and excise tax, but he is by no means assured of success. In my home state of Maryland, a similar situation exists with respect to the State of Delaware. Delaware has no sales tax, and somebody buying a boat in Maryland can save the excise tax (which was 5 percent when I bought my boat but I think is now 6 percent) by buying the boat in Delaware and using a Delaware hail port in her documentation. However, Maryland is very aggressive about going after these boat owners if the boat shows up in Maryland waters with any regularity. The Maryland taxing authorities regularly send investigators to marinas to check the names and hail ports of boats docked there. They pay particular attention to boats from Delaware that have no Maryland stickers. Massachusetts undoubtedly does the same sort of thing with respect to Rhode Island. If the boat begins to show up in Nantucket, Kerry will get a tax bill.