Lots of legal issues today. Most States have enacted a Sales Tax/Use Tax scheme to stop the avoidance of sales tax. The PA statute, which follows the common pattern, charges “use tax” for items that are used in PA and for which no sales tax was paid. If sales tax was paid, the use tax is the difference between what was paid and the PA sales tax (6%). So, if you paid 5% sales tax somewhere else, you only owe 1% in use tax. But if you paid nothing, you owe 6% in use tax.
This scheme was tested on constitutional grounds in the context of car sales (where someone near a State line crosses to get a better deal on the sales tax). The U.S. Supreme Court decided that because the State of residence used sales tax to support infrastructure, like the roads being used by the cars, the Use Tax scheme passed constitutional muster in that case. This was based, in part, on the notion that using a public highway is a privilege, not a right. By contrast, boat owners have a right to use public waterways. Another challenge I’d like to be hired for. From: Dreuge via CnC-List Sent: Friday, January 26, 2018 12:50 PM To: cnc-list@cnc-list.com Cc: Dreuge Subject: Re: Stus-List Colorado documented vessels. We have a Colorado registered Columbia 50 in our marina. While the sailboat should have been registered in Florida by now, I was told by the owner that he did not pay sales tax to register the vessel in Colorado (his home state) but he would have to pay about $5k in taxes to register it in FL. With a tax incentive like that I would guess that there are many many documented vessels with Colorado registrations, but likely not more than a hand full in the state. - Paul E. 1981 C&C 38 Landfall S/V Johanna Rose Fort Walton Beach, FL http://svjohannarose.blogspot.com/ On Jan 26, 2018, at 11:44 AM, cnc-list-requ...@cnc-list.com wrote: On Jan 26, 2018, at 8:00 AM, coltrek via CnC-List <cnc-list@cnc-list.com> wrote: I'll bet you can count the number of documented vessels in Colorado on one hand ! Bill -------------------------------------------------------------------------------- _______________________________________________ Thanks everyone for supporting this list with your contributions. Each and every one is greatly appreciated. If you want to support the list - use PayPal to send contribution -- https://www.paypal.me/stumurray
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