I stand corrected on the urban legend, although it is easy to see how this might become lore.
I remain curious as to why some boaters are being tagged for sales tax. A boat cannot be registered or titled in NY without paying sales tax or proving that you paid sales tax in another state that has a reciprocal agreement. Where the targeted boats "casual sales" in which the sales price was reported by the purchaser? That could lead to under reporting the sales price and subsequent under payment of sales tax. Are the boats registered or documented out of state? Or list out of state hailing ports?
If the targeted boat owners have been playing loose with the rules and law, then I'm glad the Tax Department is doing its job and taking action. On the other hand, if the owners have been following the rules and then the Tax Department is harassing boat owners who have followed the law and the Tax Department is out of bounds.
Many years ago, some advocated purchasing the boat (hull) separately from the sails, electronics, and other equipment in an effort to dodge paying the appropriate tax. Haven't heard that scheme discussed in years. I've also heard of buyers asking for receipts that list a lower selling price, again to reduce the tax burden. The point is there are ways to game the tax collection system, and if a boat owner has played those games then I have little sympathy for them.
Perhaps there is an investigative reporter who might take an interest and write an article. The NY Post started to go down that path, but there doesn't seem to be a follow up.
I remain curious as to why some boaters are being tagged for sales tax. A boat cannot be registered or titled in NY without paying sales tax or proving that you paid sales tax in another state that has a reciprocal agreement. Where the targeted boats "casual sales" in which the sales price was reported by the purchaser? That could lead to under reporting the sales price and subsequent under payment of sales tax. Are the boats registered or documented out of state? Or list out of state hailing ports?
If the targeted boat owners have been playing loose with the rules and law, then I'm glad the Tax Department is doing its job and taking action. On the other hand, if the owners have been following the rules and then the Tax Department is harassing boat owners who have followed the law and the Tax Department is out of bounds.
Many years ago, some advocated purchasing the boat (hull) separately from the sails, electronics, and other equipment in an effort to dodge paying the appropriate tax. Haven't heard that scheme discussed in years. I've also heard of buyers asking for receipts that list a lower selling price, again to reduce the tax burden. The point is there are ways to game the tax collection system, and if a boat owner has played those games then I have little sympathy for them.
Perhaps there is an investigative reporter who might take an interest and write an article. The NY Post started to go down that path, but there doesn't seem to be a follow up.