[Search for users] [Overall Top Noters] [List of all Conferences] [Download this site]

Conference unifix::sailing

Title:SAILING
Notice:Please read Note 2.* before participating in this conference
Moderator:UNIFIX::BERENS
Created:Wed Jul 01 1992
Last Modified:Mon Jun 02 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:2299
Total number of notes:20724

748.0. "New Tax-Law / Scam ?" by OFTEN::SERA () Tue Feb 23 1988 10:45

I "SEARCHed" all over this file and was not able to find anything on the
problem I am about to describe. I'll try to make it short...

I bought my Endeavour-33 "ARESA" brand new at Wells Yachts (Marblehead)
July 1st 1983. I paid all my dues (tax, documentation, "FREIGHT, RIG,
LAUNCH, COMMISSION", you name it). Yesterday I got the following letter
from them:

	"Dear Mr. Sera:

	The Commonwealth of Massachusetts has ruled that freight, rig, launch,
	commissioning and installations are taxable items and has enforced it
	retroactively. Therefore, Wells Yachts must invoice you for the tax
	on these items originally deleted from your taxable purchase.

	Enclosed please find a copy of your invoice with the additional tax
	due highlighted in blue. The check should be issued to Wells Yachts.

	We're sorry for any inconvenience this may cause.


							Sincerely,

							Bookkeeper"

By the way the so called tax bill comes to $202.50.

I find this totally ridiculous. Has anyone heard of such law ? If this
is true, I guess we can all expect tax bills from the dealers. This
sounds real fishy to me. I will be contacting the Mass Consumer Protection
Agency on this and will post their verdict here. Needless to say, I am
refusing to pay the bill...

I had a real bad experience buying my yacht at Wells. I had to redo all
the transducer wiring on both Datamarine (depth and speed/log) instruments.
The cables were cut all over the place to install the instruments. I read
the documentation on both instruments and it was very specific about not
cutting the instruments' transducer cables. Bottom line was the instruments
never worked properly until I redid all the work. They have been fine since
then. In addition I had to step the mast down to reroute my VHF antenna
cable since they did not route the cable thru a rail that is provided
by the mast's manufacturer so the cable does not rattle when the boat
moves. This was specially annoying when you were tied up on a mooring.
I had lots of people complain they could not sleep at nights. I reported
these and other bugs to Wells and all I got was the runaround tune. I know
better now how to deal with these kinds of people.

On a different tangent, Datamarine International (Pocassett MA) was very
helpful in helping me finding out what the problem was. They even had me
send in the instruments for diagnostics free of charge, including postage.
They even sent me a free depth sounder transducer to test the instrument.
I don't have enough good things to say about Datamarine. Big contrast with
Wells !!

Anyways, I welcome any comments or suggestions. Happy and safe sailing
this coming season.


							-Al-

T.RTitleUserPersonal
Name
DateLines
748.1Giving wealth to the common people ??ODIHAM::JORDANChris Jordan, South UK Application CentreTue Feb 23 1988 11:2410
    
>>	"Dear Mr. Sera:
>>
>>	The Commonwealth of Massachusetts has ruled that freight, rig, launch,
>>	commissioning and installations are taxable items and has enforced it

    WHO ?????     The Commonwealth of Massachusetts ???
    
    

748.2You have got to be kidding??AKOV11::KALINOWSKITue Feb 23 1988 12:1522
        Seeing how happy you are with Wells, ask yourself this question:
    
      Will I ever go back there and buy another boat?
    
         If not, tell the bookeeper to go pound sand. They should have
    either taken the money out and put it into escove ahead of time,
    or at least told you about such a potential problem. Tell them to
    take it out of the profit margin which must be quite high since
    the quality of their workmanship proves they hire fools. It isn't
    worth the $200 bucks for these bozos to get a lawyer, so they 
    probably will just eat the cost. 
    
        I can't beleive somebody who sells big ticket items like this
    would bother their clients for a 5% tax on an item from 5 years
    ago. It boggles the mind. When this is over, I would love to know
    how much much money they collect, and how much bad will they create.
    (i.e. Friends may come, and friends may go, but enemies just 
    accumulate)
    
       john
           

748.3What Consumer Protection ??OFTEN::SERATue Feb 23 1988 12:3114
Re: < Note 748.2 by AKOV11::KALINOWSKI >

My sentiments exactly...

I tried to call the Attorney General's and several other Consumer Protection
and legal phone numbers (727-8400, 655-4533 - listed on phone book but
a record store answers, 396-5500, 284-3600, 727-4661, 727-4662, 620-1830,
626-8585, 800-392-6164) and I have been forwarded all over the place...
I cant get an answer to this. Unbelievable !!! Is this the way we as consumers
get protection ??? Any further suggestions would be appreciated. I'm about
to ignore Wells' letter and TRY to forget the whole incident.

							-Al-

748.4You can pay them now or pay them laterCSSE::COUTUREAbandon shoreTue Feb 23 1988 13:0120
    Better pay up.  This is part of Dukakis's plan to get more revenue
    without increasing taxes (YOU vote for him for president if you
    want).  I had the same experience.  The Mass Department of Taxation
    and Revenue is going back and looking at every ST-6 (sales tax on
    a marine vehicle form) and collecting collecting revenue on freight,
    etc. that wasn't taxed before.  I don't know how retroactive they're
    going to get, but my boat was purchased in 1986 and they nailed
    me.  
    
    The reason why you would have to pay Wells is that they filed the
    ST-6 instead of you.  However, YOU are liable . . . it's your boat.
    These guys (Mass. DOR) are serious about this and have been slapping
    tax leins on boats and impounding them until the lein is paid. 
    
    I believe your only recourse is legal action against The Commonwealth.
    If the boat hauling company used is not based in Massachusetts and
    it was manufactured out of state, you might have a case.  Of course,
    it's going to cost you more for attorneys than the $200 they're
    after.  Then again, a class action suit might just  . . .

748.5DSSDEV::JROBINSONTue Feb 23 1988 13:207
    
    
    It looks like there are two issues, the tax and the dealership.
    I agree with the previous replise that said "pay the tax".  But
    if you have documentation of bad workmanship that you had to repair,
    you might try to collect for that.

748.6Mike TAXakis for president...RDF::RDFRick FricchioneTue Feb 23 1988 20:458
    What exactly is it that is taxable now?  Just freight, or
    rigging/commissioning work?   Having bought an O'Day, I had no
    freight since it was made in Fall River.
    
    Rick
    
    *  Who does not need another bill right now..

748.7Status Update...OFTEN::SERAWed Feb 24 1988 11:0940
Re: < Note 748.6 by RDF::RDF "Rick Fricchione" >

If you saw the original sales agreement and purchase order you would find
that the 5% Mass tax was computed on the yacht and options total. Following
there is another itemization section which contains the bottom painting,
freight, rig, launch and commissioning total. Ther was no 5% computed for
those services. The law explicitly states and includes "services and labor"
as taxable. I never even noticed/questioned the invoice until now.

I finally got thru to the Mass Sales Dpt. (for boats) and the person (by
the way, very rude) indicated that he has not seen any new laws coming
up recently in this area.

To top this, I found out that the Wells sales man who sold me the boat back
in 1983 quit and joined another yacht brokerage firm two weeks ago. Thats
the person I am trying to contact now for details. I saw him at the Wayside
sail show two weekends ago but I had not received the letter by then.

I got strong suspicion on what is going on by now but will hold on my
speculation until I get more facts about the situation.

I belong to Boat US and called them yesterday. They are supposed to get back
to me. They questioned whether I am still liable after 5 years, unless there
is a law that explicitly states so. Another thing that bothers me is that
Wells sent the letter and a copy of the original invoice but did not send
me a copy of this so called "new state law" published by the Commonwealth
of Mass.

To answer your question:
>    What exactly is it that is taxable now?  Just freight, or
>    rigging/commissioning work?   Having bought an O'Day, I had no
>    freight since it was made in Fall River.
    
According to Wells, all of the above... In my opinion, it has been
ALWAYS. I would appreciate those who still have their original invoices
to check them and indicate in this note whether the service/items in
question were itemized and 5% taxed. Thanks in advance.

							-Al-

748.8in a related storyGRAMPS::WCLARKWalt ClarkWed Feb 24 1988 15:5414
    There is a similar situation happening to carpenters all over Mass.
    
    It seems the law was sufficiently vague around labor and services
    that these guys were told by the tax department not to charge sales 
    tax for cabinets they installed, just the cabinets themselves.  
    Supposedly, the state "discovered" a more lucrative way of reading 
    the law, and has billed them for a bunch of back years sales tax 
    (which they didnt collect).   
    
    It has put several out of business and home. I think they are 
    organizing a class action of some sort.

    Walt

748.9et tu RDFCASAD2::THOMASTue Mar 01 1988 10:388
    Rick,
    
    FYI, a CAL 33 (Wells boat, shipped from the same place yours came from)
    at the Bayside Show showed a freight charge of $2-300. So you may be
    getting a letter from Wells too. 
    
    Ed