John Kerry Takes on Water Over Yacht Controversy

By: Jaywon Choe
Topics: Democrats

"Isabel," the 76-foot yacht owned by Democratic Sen. John Kerry of Massachusetts, undergoing repairs in Portsmouth, R.I., July 23, 2010.

(Credit: AP)

Updated 5:03 p.m. Eastern Time

Massachusetts Sen. John Kerry has ridden into a storm of controversy tied to revelations last week that the senator registered his new yacht in Rhode Island, not Massachusetts, potentially saving him some $500,000 in taxes.

The Boston Herald kicked off the debate Friday, speculating that the Democratic senator's decision to register his boat out of state may have been to skip out on paying Massachusetts taxes.

The Boston Globe reports that according to the Massachusetts Department of Revenue, the state's tax code stipulates that if a resident purchases property, including a yacht, out of state and keeps it there for six months, the state will not impose its sales tax on the item. This means the senator could stand to avoid a $437,500 one-time sales tax and $70,000 in an annual excise tax.

Kerry says that the decision was not made for tax purposes, but simply because the boat is undergoing maintenance in Rhode Island.

Speaking with reporters yesterday, he said, "It's under warranty down there," adding: "It's being worked on and it will come to Massachusetts and I look forward to that." He didn't specify when that would be.

His spokesman also told the Globe that the senator will pay any and all taxes that he owes on the yacht.

"Whatever the Department of Revenue determines that he owes in Massachusetts taxes, he will pay,'' Brigid O'Rourke told the Globe last night. "He will absolutely pay any and all taxes that he is found to owe.''

The Department of Revenue said that if Kerry brings his boat to Massachusetts after six months, it would review the matter and determine whether taxes will be imposed.

UPDATE: Kerry said in a statement to the Associated Press late Tuesday that he has informed the Massachusetts Department of Revenue he will "promptly" pay taxes on the yacht as though it were based in his home state.

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by fedupvoter99 September 3, 2010 3:27 AM EDT: where is the IRS on this, should this be a red flag for a tax audit. It is us against them.; Reply to this comment


by realist51 July 29, 2010 1:34 PM EDT: If this was some corperate big wig from wall st. it wouldn't of even made the news. it would of been herolded as a great capitalistic way to save money. so whats the big deal.alot of hypocritical repubs making stupid comments again. didn't hear to much sqwaking from these people when bush opted to have the white house helicopters made over sea's. besides this is kerry's private life decision when you are all buying american made products and cars then you have might have a right to run off at the mouth; Reply to this comment


by kookfringe July 28, 2010 11:52 AM EDT: It goes to show "LIBERALISM IS A MENTAL DISORDER" now kerry thinks everyone else has been infected !; Reply to this comment

by cleric60 July 28, 2010 9:40 AM EDT

I really find it interesting how the very rich find ways/means to avoid paying their share of taxes--but demand that the working poor and middleclasses pay their taxes. Again, let's remember that the richest member of Congress is a Democrat and at least of the richest members of Congress belong to the Democrat party.
Now, I ask you what party is really for the rich and promotes the power of the federal government over the working poor and middle-class? Democrats.
I also wonder what percentage of their $$$$ millions do these Democrats give to charities to help the poor?

Reply to this comment


by cleric60 July 28, 2010 9:44 AM EDT: CORRECTION:
I really find it interesting how the very rich find ways/means to avoid paying their share of taxes--but demand that the working poor and middleclasses pay their taxes. Again, let's remember that the richest member of Congress is a Democrat and at least 13 of the richest members of Congress belong to the Democrat party.
Now, I ask you what party is really for the rich and promotes the power of the federal government over the working poor and middle-class? Democrats.
I also wonder what percentage of their $$$$ millions do these Democrats give to charities to help the poor?


by hippyhawk July 29, 2010 12:35 PM EDT: Good question cleric60. I know for a fact that I donated more money to charity that Joe Biden did last year. And no I am not a millionare.


by confused2byu July 28, 2010 9:34 AM EDT: So it is a new yacht, it is under warrenty, and it is being worked on? Either he bought a major piece of crap or he thinks people are really that stupid.; Reply to this comment


by Dubai_expat July 28, 2010 9:25 AM EDT: Don't see what the big deal is. He hasn't done anything illegal. You don't get rich by throwing away money needlessly.

I generally despise Kerry (it's really a Vietnam thing), but I would do the exact same thing in his situation. Can anyone here honestly tell me otherwise?; Reply to this comment


by chevyhotrod July 28, 2010 8:23 AM EDT: Not only did he avoid paying Mass. taxes, he had his boat built oversees instead of having it built in the states. He outsourced hundreds of jobs to foreigners while millions of unemployed suffer here in the United States and we sit here and wonder why the economy is in the state that it is. Typical do as I say, not as I do elite Democrat politician.

Congrads Mass. you voted for this hypocrite, he is all yours.; Reply to this comment


by wdh3007 July 28, 2010 3:12 AM EDT: Kerry's precious yacht is obviously worth more to him than any voter in the entire state of Massachesetts. These are the types that corrupt our political system and why these idiots should have term limits on anything political they hold. The current Congress is a scam and will all be voted out in November!; Reply to this comment


by wfw3536 July 27, 2010 10:29 PM EDT: Kerry was found out and now he is trying to make excuses for trying to avoid paying his fair share. What a joke as this guy isn't shy about asking folks to pay their taxes and he sure isn't shy about spending and spending our money. What a hypocrite.; Reply to this comment


by scottyusa July 27, 2010 7:06 PM EDT: Oh come on Kerry we are not that stupid. You don't need to register your SHIP in RI to get it repaired there. Give us some credit. You did it for tax purposes period. It follows the pattern of most rich people like you. You are the biggest bunch of cheats there are.; Reply to this comment