Here is an example of the priorities in New York state’s budget: There is no increase in the minimum wage, but purchasers of yachts that cost more than $230,000 are exempt from the sales tax. This may be a wonderful boon for the boat-building industry, as well as the yachting community. There is no point buying a yacht that costs $200,000 or even $220,000, as you will have to pay the sales tax. So, when you consider buying your next yacht, be sure to spend at least $230,000.
Score a big win for the yacht lobby!
Diane Ravitch's blog 
Today is not April Fools day, but perhaps every day in Albany is a Foolish day.
“Let them eat cake!”
Marie Antoinette met her fate with logic like that which is found in the NY State budget.
They have it reversed. Middle class boat owners who save up to buy a larger, more expensive boat, should be tax exempt. Those who can afford those huge luxury yachts, can afford a few cents on the dollar more to pay the taxes.
The yacht makers have taken a hit recently, but I’m sure they would sell more of the “less” expensive models than those more costly boats if the tax plan were reversed. In other words, the taxes might keep a modest income family from buying a boat, but it wouldn’t deter someone who could afford an upscale version.
Ellen #Owns2Boats
Like a broken record: Best government money can buy.
Bale out the banks but not the students trying to get an education. etc etc etc.
Time to dust off Ol’ Choppy!
One quick clarification that I think is helpful here: The story that Diane linked to doesn’t say that the full purchase price of the yacht would be exempt, as she implies in the post, just the amount of the price over $230,000. The sales tax would apply to the first $230,000 of the transaction (assuming the linked article is correct) but not to the amounts beyond that. Still, it doesn’t undermine the overall point that the post is trying to highlight, unless, of course, someone can point us to a powerful study that tells us that this measure would provide an overall economic benefit to the state in terms of worker wages, job creation, etc. Studies funded by the “Association of Yacht Builders” or some other similar group don’t count, by the way.
Thanks for the clarification Paul. Check out these babies. Quarter million wouldn’t pay for a years worth of fuel.
http://www.superyachts.com/search-results?property_profile_type_id=1&property_yacht_type=1&property_yacht_condition=1¤cyId=1&min_price=5000000&max_price=125000000&
Paul Manna, my error. I wonder why someone buying a yacht for more than $230,000 needs a tax break.
Choice.
Of course.
😏
Those that can afford those yachts—and not coincidentally, some of them have bought themselves front row seats in the leadership of the “new civil rights movement of our time”—need some lovin’ too.
Dontcha know that the self-esteem of those wealthy edupreneurs, e.g., takes a lot of hits when they administer the bitter medicine of corporate education reform to the rest of us? They need new and better choices to restore themselves to full health. Contemplating visions of their new [and a bit cheaper] yachts from their fainting couches while they clutch their pearls gives some them some needed measure of hope and comfort…
And that warm tingly glow they feel afterwards? Ah, $tudent $ucce$$ springs eternal and cures all that ails them.
Or so the latest unconfirmed rumors have it…
😎
This could be a great “close reading” question for CCSS tests … or maybe a constructed response: Which yacht would you buy and why?
Most people reading the post, probably assumed it was a marginal tax on the amount above $230,000.
As Paul points out, the special tax treatment is egregious pandering to the wealthy.
In terms of job creation, tax breaks or increased wages, for the middle class increases economic growth far more than policies tailored to the 0.1%.
The mere fact that the legislature felt the need to specify in the budget that there should be no tax on the amount beyond $230,000 for yachts tells you all you need to know about them.
It really exemplifies their “high level thinking.”
I was born, raised and educated in NY state and I am frankly amazed by the sort of stuff that is coming out of the NY government these days.
It’s not just biased toward the monied interests, but much of it is just downright stupid — crazy, even.
They either do not realize it or simply do not care, but these folks are an absolute embarrassment to the great state of NY and are certainly viewed that way by many people both in and outside NY state.
But I suppose they are just a product of the NY schools so that’s where we should put the blame, right? After all, any school that produced Andrew Cuomo — a fellow who failed the bar exam 4 times (which has to be some kind of record) — should certainly be shut down, right?
Does NY have a cap on sales tax for vehicles? In my state its $300, the most sales tax you can pay on any vehicle purchase. That has a pretty big impact.
No Peter. No sales tax cap on cars, I paid over a thousand in taxes just to lease my car. We pay taxes through the nose for the privilege to live here.
Ellen #WantValueForMyMoneyAndNotGettingIt
Ellen, we pay less taxes so corporations want to live here. Then thy complain about less educated workers.
Peter – you get what you pay for. I live in Amherst and I pay a lot in property taxes, but they plow and clean the streets, patrol the roads, pick up my garbage, and provide an excellent education for my kids. The state, however, seems to be taking my money and then giving me the finger.
Just think – here’s a person not career ready, yet he found a job as Governor.
Ellen #YouTooCouldBeGovernor
Ellen,
I think that depends on whether you use “career” as a noun or a verb
If you use it as a verb – “career-ready” means “ready to careen”
I was waiting for that incentive. Tired of getting stuck in traffic. Eluding potholes and eternal road repair work on the Gowanus. Affordable yachts is the perfect answer.
Thank you Governor Status Cuomo. Alternate parking rules–good bye. And parking tickets–issued by the fastest civil servants known to man. Great to see that BdB has them hopping, streaming in revenue that I won’t have to contribute to the City anymore.
I’m hoping we get some relief from Starbuck’s and have some tax-free days on the Miracle Mile. Now I can run out and get those special people in my life Loubetain’s.
The Empire State is where it’s at!
A $250,000 yacht isn’t what it used to be!
I read this and immediately bought a yacht for $230,001. Then I clicked on the link and saw that the exemption only applies to every dollar above this threshold, and that I still have to pay sales tax on the first $230,000. Thanks a lot!
FLERP,
That is an incentive to spend $500,000 on your yacht
Thank God you put out this post.
I KNEW I have been overpaying for my yachts all these years. It’s about time politicians started to listen to the neediest of us sea goers.
FLERP
Serves you right for shopping at the little people yacht store. Any one of these will get you the tax break you were hoping for:
http://www.superyachts.com/search-results?property_profile_type_id=1&property_yacht_type=1&property_yacht_condition=1¤cyId=1&min_price=5000000&max_price=125000000&
Price range is $5 to $125 million! Eight % of even 5 mil saves you $400K!
FLERP!
You have no reason to complain. You should just be happy you saved 4 cents on the purchase price.
There is another exemption many states grant to yacht owners. A boat must be located in a state for a certain period of time, somewhere around 180 days to be taxed there. So at about the 180th day, the owners send it to another state. With a reasonable time on a cruise you can avoid property taxes in both states. That’s even more lost revenue than sales tax.
Disney and Norwegian Cruises, here we come!
If this were April 1, I would laugh. We are entering the world of Kafka.
Nope, we’ve been in the Kworld for quite sometime now. As L. Black has stated: “I took LSD when I was younger to prepare myself for times like now!”
“Metamorphosis” (certainly since I lived there)
Gregor Samsa woke quite late
Found himself in NY state
Though he’d turned to beetle queer
That was not his biggest fear
Governor was King of Hearts
Walking naked in the parks
Scaring parent and little kid
With every crazy thing he did
I have misplaced my sense of humor somewhere along the way. All of the clever comments above and I couldn’t even manage to crack a smile.
I agree. It’s all sad and perverse.
But don’t get angry. Get even. Get activist . . . .
Ya gotta laugh, Betsy, or you’ll cry. A lot.
The people that purchase these expensive yachts don’t need the tax break and won’t miss the money in the first place. It is guys and gals that build these expensive toys for the rich and foolish that need the tax break. The workers, the builders, can’t even afford the chrome nameplate on the door to a rest room in these floating palaces yet they have to make up the taxes the beyond wealthy don’t have to pay. Go figure the just in that.
Well there you go. Herein is the silver lining: The people that MAKE the boats, literally put them together at hourly wages, can continue to be employed, hopefully, by the trickle down effect of incentivizing the wealthy to continue to buy boats, without paying high(er) sales tax(es). I knew someone would find it.
Thanks, Guv! Time to go and get that Chris Craft yacht I had my eye on.
Now if I can only figure out a way to buy it on my NYCDOE salary….. Any seaworthy yachts out there for sale for dirt cheap??????
Only the little people buy rowboats, canoes, and small motor boats . . . . .
The rest of us have to put up with the injustice and drudgery of purchasing yachts over $230K and not paying any sales tax on them.
Does this mean I actually have to get off my sofa and drive to a yacht dealership? That’s too much effort. It’s infuriating!
Anyone know of a good retail yacht website?
We are in a race to reduce taxes to zero. Red states like Texas have low taxes (and low services). Texas claimed it grew jobs during the recession but all it did was steal jobs from other states by not taxing the employers who moved there. The eventual result is the collapse of government and it’s services. NY has joined the Race To The Bottom.
Jobs is always the go to excuse. Why not a tax break for the middle class that would bolster jobs instead of a a regressive tax break for the rich.
Yes, you have to laugh, then roll up your sleeves & then “organize, don’t agonize.” And, “when the going gets tough, the tough get going.” WE are tough…and WE WILL get going.
BTW–I was at the 40th ALEC “birthday celebration” demonstration outside of the very fancy Palmer House Hilton in Chicago two years back. I’m assuming that they did, in fact, eat cake (probably joked about all of us peasants on the ground). However, not only did they not let us eat cake, they didn’t even throw crumbs down to us (or at us).
Of course, even though hundreds marched & the Rev. Jesse Jackson & others spoke,
zilch media coverage.
http://www.vanityfair.com/news/2015/03/new-york-yacht-sales-tax-exemption
Andrew Cuomo and his relationship with the yacht industry,
“Poor Andy”
When Andy buys his yacht
He really pays a lot
So needs a break
For goodness sake
On mega-yacht he’s bought
Too bad Cuomo isn’t from Nantucket 🙂