In a recent ruling by an attorney for the State of California, a taxpayer’s purchase of a vessel was held to be taxable. This was done in spite of support that an off-shore delivery occurred and the vessel remained in Mexico and outside California for more than 90 days.
For those of you in the yacht brokerage business, as well as those thinking about purchasing a yacht, this case can have a profound impact on your transactions.
In Southern California the myth has been running rampant for years that as long as the purchaser took delivery “off-shore,” and then sailed to Mexico for a continuous period of at least 90 days, the transaction would be exempt of sales tax upon return to California.
Don’t let these myths about avoiding sales and use tax hit your bank account. Read my full article on this subject today and don’t forget to call Tom!
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