yacht1 Yachting Not Taxing for John Kerry

BOSTON (AP) — Massachusetts Sen. John Kerry is docking his family’s new $7 million yacht in neighboring Rhode Island, allowing him to avoid paying roughly $500,000 in taxes to the cash-strapped Bay State.

If the “Isabel” were kept at the 2008 Democratic presidential nominee’s summer vacation home on Nantucket, or in Boston Harbor near his city residence, he would be liable for $437,500 in one-time sales tax. He would also have to pay $70,000 in annual excise taxes.

Rhode Island repealed those taxes in 1993. That has made the state something of a nautical tax haven.

Kerry spokesman David Wade said Friday the boat is being kept at Newport Shipyard not to evade taxes, but “for long-term maintenance, upkeep and charter purposes.”

Wade noted the vessel was designed by Rhode Island boat designer Ted Fontaine and purchased in the state. It was built in New Zealand by Friendship Yachts.

A Department of Revenue spokesman said Kerry would be liable for Massachusetts taxes if he berthed the boat in the Bay State within six months of its purchase. If the “Isabel” were brought to Massachusetts after that period, the state would have to decide if it wanted to pursue the taxes.

Massachusetts, like most other states, has been grappling with plunging tax revenues. Last year’s budget decifict was $600 million, and officials are bracing for a $1 billion deficit this year.

The 76-foot sloop has two cabins, a pilot house fitted with a wet bar and cold wine storage, according to the Boston Herald, which first reported its Rhode Island berthing. It derives its moniker from the middle name of Kerry’s mother and the name his wife, Teresa Heinz, planned to give a daughter.

Instead, she had three sons.

Coast Guard registration records show the vessel is owned by Great Point LLC, a limited liability corporation based in Pittsburgh, Heinz’s longtime home. The millionaire heiress to the Heinz ketchup fortune is a philanthropist and environmentalist.

  1. the electrician says:

    kerry is a complete hypocrite, hes all for raising taxes, and then buys a multimillion dollar yaught, parks it at r.i. harbor so he does not havre to pay taxes, just like obama did when he got his 5 million dollar book deal he used president bushes tax bracket insteAD OF his own…

  2. You Know Jack says:

    All of them have to go, every single congressman and senator regardless of the party they affilate with. It is time to get people in those positions that want to make this country great again not use the positions to just help themselves to our money.

  3. William Clark says:

    Taxes are good for the gander and not the Goose. This speaks for itself.

  4. Dan says:

    I don’t blame anyone for trying to avoid paying these outrageous taxes.

    I blame those, like Kerry, and Harry Reid, who enact them.

    All democrats are such lying hypocrites it is not even worth mentioning anymore.

  5. laura says:

    Not surprised. he’s a crook.

  6. JP says:

    What a putz, reminds me of that dip s##t Al Gore. What’s the old saying “bad apples don’t fall far from the tree”. These guy’s write these tax bills into law and they are above it. The laws are for the little people.

Leave a Reply

Please log in using one of these methods to post your comment:

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Listen Live