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Sales & Use Tax Tips for June 2010
BEWARE OF MOORING YOUR BOAT IN NEW YORK
Did you know that mooring or bringing your boat in to New York for repairs or sale can cause some unforeseen tax and/or assessment defense expenses?
Spring has sprung and New York, like other states, is hungry for money. It is boating season. New York has in the past and will likely in the future send sales tax auditors out to various marinas in search of vessel owners who have not paid New York's sales and use taxes. An unprepared boat owner may find themselves defending against a costly tax assessment.
For example, New York has recently issued a $93,000 tax assessment on a New York boat owner who brought his vessel in to New York for repairs and eventual sale. A settlement was reached but ultimately was rescinded after one late payment. The taxpayer found himself owing the entire assessment amount.
However, at the time of purchase, approximately ten years earlier, the individual was not a resident of the State. As the time for appeal had expired, we recommended the assessment be paid and we quickly sought and obtained a 100% refund based on the non-resident argument and providing supporting documentation. Hiring us from the beginning could have saved this client thousands of dollars in defense fees. Don't let this happen to you. Knowing the sales tax laws and having proper documentation can save you lots of money in the long run.
To learn more about this or for Exposure Resolution options or assistance please Contact us today. Or call 1-888-466-2829 to speak with an Olivier &
Associates Sales and Use Tax professional for a no-obligation consultation about your Sales & Use Tax issues.
Click here for more Sales Tax Tips or visit our website www.oatax.com. For additional insight on common sales tax concerns, please see the Did You Know? section of our website.
* This tip is intended to provide general information only and is not to be considered as a substitute for professional advice.
