The Real Deal New York

NY state budget gives tax breaks for private planes, yachts

Critics decry benefit to the 1%; supporters say measures will help job creation

March 31, 2015 11:30AM

(inset: Andrew Cuomo)

A Benetti super-yacht (inset: Andrew Cuomo)

The New York state budget bills passed by the Legislature on Monday night included sales tax breaks on the purchase of private planes and yachts.

Buyers of yachts will only pay sales tax on the first $230,000, while buyers of small planes designed to carry under 20 people will not pay any sales tax, according to the New York Daily News.

Critics slammed the deal, especially in the face of other proposals that were left out of the final budget, such as a minimum wage increase and statewide property tax relief.

“I guess the yacht lobby is stronger than people thought,” said Mike Murphy, a spokesperson for the Senate Democratic Caucus. “It is outrageous that we are giving tax breaks to buy a yacht but couldn’t raise the minimum wage or provide real property tax relief.”

Supporters of the measures claimed that they would be a boon to the state economy and help job creation.

“We are trying to encourage people to buy their boat, to maintain their boat and use their boat in New York,” said a Cuomo administration official.

The state’s new fiscal year begins Wednesday. [NYDN] — Tess Hofmann

  • Edward Johnson

    Ok Democrat commenters. Let’s see you explain your way out of this one….

  • Sajh

    Right because if it was a republican, they definately would not look out for the rich? I mean, that’s the Republican platform, right? More than likely, a Republican would go further and say that 50% of the cost of the yacht would be tax deductible.

    • Edward Johnson

      What makes you think I’m a Republican? What do Republicans have to do with this article? The old “he was doing it too” argument got old for me in about the 8th grade.

      This is a despicable handout to the rich. Cuomo and his Democratic party should be ashamed of themselves.

      • Sajh

        What do Democrats have to do with it either? It’s Cuomo, not all democrats. Things like “ok democrat commenters…” and “…his democratic party” indicate someone strongly against the Democrat party and are usually made by someone who is Republican. And being that nearly all those in office are either Republican or Democrat, most voters are one or the other. Therefore, it’s a fair assumption of your political affiliation. Yes, our political system is broke but it’s all politicians, democrat and republican, that are giving handouts to the rich and to the corporations. So I’d like you to clarify, if it is clear that both political parties are corrupt why it matters that “Democratic commenters explain their way out of this one”.

        • Edward Johnson

          I’m an independent. I’m tired of listening to people on the left complain about the Rep’s love of the 1%. Both parties love the 1%.

          Dems just lie about their love of the 1% more often. It’s tiring. The whole “we’re for the little guy” crap we always here from the left is just tiring.

          • noclist

            ” Both parties love the 1%”
            That’s where the money is to keep their golden goose golden.

  • Tim

    And Cuomo’s buddy and
    chief fundraiser, Andrew Farkas, owns Island Global Yachting, Montauk Yacht Club and recently won the lease to the marina at the World Financial Center aka
    Brookfield Place….nice.

    • noclist

      well if they didn’t you’d have a John Kerry type situation where the wealthy would buy and maintain their yachts in places with low taxes (Rhode Island ring any bells?) and NY would lose all the revenue associated with it.

    • comment flagged

      Suspicious, but does he actually *sell* yachts in New York State or is he planning to do so?

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