Join Date: Feb 2013
Location: Minneapolis, MN
Thanked 119 Times in 115 Posts
Rep Power: 8
Re: Best Eastern Seaboard State for Sales Tax
Jeebus, no wonder attorneys make so much money:
Directive 87-3: Property Purchased for use in Massachusetts; Burden of Proof
It should be noted that the use tax may apply to non-residents. Furthermore, property need not be used exclusively or even primarily in Massachusetts to be considered purchased for use within the Commonwealth.
EXAMPLE 1: Taxpayer Taylor, a resident of New Hampshire, purchased a sailboat in Connecticut on May 1. She brought the boat to the Cape in June, renting space for it in a Wellfleet marina. Since that time she has sailed the boat in nearby waters.
Since Taylor brought the boat into Massachusetts within six months of purchase, she has the burden of proving it was not purchased for use here. Under these facts and circumstances, Taylor cannot meet this burden and is, therefore, liable for the use tax on the boat.
EXAMPLE 3: Taxpayer Davis, a resident of the Commonwealth, is a tenured professor at the University of Massachusetts. For his sabbatical, he decided to purchase a small boat and sail around the Caribbean. On December 1, he went to Florida where he purchased the boat for his trip. He returned to Massachusetts with the boat on July 1. Since that time he has sailed the boat in Massachusetts waters.
Since Davis brought the boat into Massachusetts more than six months after purchase, the Commissioner has the burden of proving it was purchased for use here. Under these facts and circumstances, the Commissioner can meet this burden. Therefore, the use tax will apply.
on a starboard tack