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California Republicans Protect Yacht Owners from Sales Taxes

Posted by Matt Ortega on February 21, 2008 at 03:03 PM

California Republicans successfully thwarted an attempt to close the tax loophole for yacht owners. (It was described in the Sacramento Bee as "a loophole that allows purchasers of boats, motor homes and airplanes to take possession outside the state's boundaries and avoid California sales taxes if they leave it out of state for a specified period.")

Assembly Republicans defeated a bill that would close the so-called "sloop hole" that allows owners of yachts and private planes to dodge a use-tax by parking the vehicles out of state for the first three months after purchase.

California loses an estimated $26 million a year because of the current law...

Currently, the state is facing a $14 billion budget deficit. To give you a sense of the misplaced priorities, while California Republicans were protecting yacht owners, hundreds of disabled and seniors rallied at the State Capitol to protest 18 percent cuts to the In-Home Supportive Services (IHSS).

Local activists have bombarded the state GOP with calls. When they turned off their phones, they found other ways to voice their displeasure.

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