Connecticut: The Third Happiest Day of a Man’s Life
- Jul 17, 2013 | Gail Cole
If the happiest day of a man’s life is the day he buys his boat and the second happiest day of a man’s life is the day he sells his boat, the third happiest day must be the day he discovers that moorage for his boat is exempt from sales and use tax. Such a man is now even more likely to be happy in Connecticut.
Beginning in October 2013, Connecticut is expanding its sales tax exclusion “for otherwise taxable mooring and storage services … to include the period from the first day of October through the last day of May.”
In addition, sales of vessels “occurring on and after July 1, 2013” are exempt from sales and use taxes if those vessels will be docked in Connecticut for 60 or fewer days (in a calendar year).
Finally, for sales occurring on and after July 1, 2013, vessels with a sales price of more than $100,000 are taxed at a rate of 6.35% rather than 7%. Previously, “the sale for more than $100,000 of a vessel” was taxed at a rate of 7%. So go ahead, buy the yacht you’ve always wanted.
How do you keep track of the ever-changing sales tax rules and regulations? Automation can help.
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