NY state budget gives tax breaks for private planes, yachts

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

A Benetti super-yacht (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.”

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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