Resident Is Not Subject to Use Tax on Yacht Briefly Docked in the State -
In Matter of Michael Pellino, DTA No. 825869 (N.Y.S. Div. of Tax App., Oct. 1, 2015), a New York State Administrative Law Judge concluded that two short stopovers at a New York marina did not constitute a “use” sufficient to subject a New York resident to compensating use tax on a yacht that he purchased and otherwise moored and stored outside of the New York State.
Facts. In 2005 Mr. Pellino, a New York resident, purchased and took delivery of a yacht in Virginia, and paid Virginia sales tax on the purchase. Thereafter, Mr. Pellino transported his yacht to Connecticut to be moored during the summer and stored during the winter, and in January 2008 paid Connecticut use tax in connection with such use. Mr. Pellino permanently moored and stored his yacht in Connecticut, except for a single period during 2008 and 2009, when it was moored in North Carolina so that service work could be performed.
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