• "In Our Opinion"

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"In Our Opinion"

Blodgett vs the Champlain Kayak Club: Two Sides of the Fence

n one side of the fence, the bleeding heart liberal respects nature in its pristine manner, preserving our dwindling resources is of great importance. The business side wants to see reasonable development of waterfront resources.

The Champlain Kayak Club's contention is that the proposed docks block a route that paddlers frequently use to avoid the deeper, choppier water farther from shore. The Conservation Law Foundation's believes that since the dock is quite large and for private use only, it does not serve the Public Trust Doctrines. Blodgett disagrees, saying that it will serve 600 people, employees and guests, therefore it does serve the public interest.

Although we support the Champlain Kayak Club's desire to maintain a traditional paddling route, we believe in this case they are wrong. The water depth in this area is measured in inches during the late summer, and in our opinion unsuitable for navigation. If successful, this judgment could eliminate all landowners from having any docking facilities.

Landmark decisions by the courts often become the law of our land. It is important that we as a society define our role in the environment in such a manner that reasonable development and nature preservation can coexist. Permitting the courts to define this role would lead to a lose-lose situation. Denying Blodgett's request for a dock could establish a precedent that would effectively eliminate any future waterfront development.

Editorial Staff of HARBOR WATCH

Mark Gardner	Ken Signorello

Letters!

Application of Vermont Sales and Use Tax to Foreign/visitor Boaters

Dear Sir,

n view of the pending boating season in Vermont and the influx of non-resident boaters allow me to draw your attention to a matter which, I believe, deserves your interest, if not your concern.

In virtue of the above law the Vermont Department of taxes contends that any foreign/non-resident/boater who visits the state of Vermont with his or her boat and either moors, docks or otherwise uses the vessel in Vermont waters for a period exceeding 30 days (consecutively or cumulatively in the same year) can be liable to a 5% use tax based upon the lesser of the purchase price or the fair market value of the vessel, unless a sales tax was charged and paid when the boat was purchased in the foreign country.

For example, a Quebec visitor who decides to moor or dock his pre-owned purchased and Canadian registered, $60,000., boat on the Vermont side of Lake Champlain while he works in Canada during the week, could end up being liable for the amount of $3000. to the Vermont Department of Taxes at the end of the summer, plus interest and penalties.

In order to avoid such interest and penalties the vistor/boater is expected present him or herself to the to Vermont Department of taxes and pay -the amount of 5% upon the 31st day.

No such "use-sales tax" applies to any Vermont boater who holidays on the Canadian side of Lake Champlain or on the St-Lawrence River in Quebec with his or her boat, beyond 30 days.

In all these instances we are not referring to an "inbond" boat or one that was purchased in one jurisdiction in order to avoid sales or duty taxes in another jurisdiction neither to such an instance when a boater wishes to change the state or country of registration of his or her boat. We are talking about situations such as a visiting non-resident boater who trailers his boat on 10 long weekends from Canada to Burlington, St-Albans or Shelburne and sails in Vermont waters for a total of 31 days; a non-resident boater who decides to moor or dock his boat at a Burlington marina for the summer months and sails on the week-ends; a Canadian who leaves the St. Lawrence river area with his or her boat to holiday on the Vermont side of Lake Champlain; a Quebecer who anchors his or her boat in authorized locations in Vermont waters over a cumulative period of 30 days during the summer months.

My interest, at this point, is to make sure my fellow boaters from Quebec are made aware as to the financial implications that may await them if they exceed the 30 day period on Vermont waters . These implications could be serious for many, since in the province of Quebec there are no sales taxes involved when a pre-owned boat is bought and sold between private parties. On the other hand when the same boat is purchased new or used from a dealer in Quebec the purchaser must pay a 13.5% tax (6.5% T.V.Q. and 7.% T.P.S.) based on the purchase price. Furthermore in Quebec a boat is not considered a second home from the Income tax perspective and therefore interest paid on a secured loan is not deductible as it is in your country.

There are other issues that may be of interest to the Vermont marinas and local communities, namely:

a) Because of Vermont's Sales and Use Tax many non-resident boat owners prefer to keep and use their boats on the New York side of Lake Champlain where the 30 day policy is not applied. This trend towards the New York side of Lake Champlain results in Vermont losing those tourist dollars which may very likely exceed what it gains through the application of the 30 day period towards the non-resident boat owners;

b) The application of the Vermont Sales and Use Tax to the non-resident Vermont Boating community is, intentionally or not, aimed at the non-residents who pay for mooring and docking fees to the Vermont marinas and particularly those who pay seasonal fees. In such instances it is possible to establish a prima facie case that their boats have "used" Vermont waters for over 30 days and this by way of the records of the various marinas. Considering the fact that Lake Champlain is 118 miles long with a shore line of 508 miles it is not difficult to imagine the endless number of consecutive locations where one could anchor, moor or dock in Vermont waters without leaving evidence that could be tabulated in order to establish that the non-resident boat owner has exceeded the 30 day period. This segment of the nonresident boating community in Vermont waters is very likely beyond the enforcement net of the 30 day period because of the lack of registration records. Therefore those who contribute to the local marinas and to the local economy by way of seasonal docking or mooring fees will be the main ones who stand to be policed and taxed.

One could hardly expect that the Vermont state police who patrol Lake Champlain be in a position to enforce the 30 day period when on any given day during the summer there are many thousands of non-resident boats in Vermont waters.

c) As long as the State of Vermont wishes to continue practicing the above policy to non-resident visitors as it did in my case, we suggest it make far more of an effort to advise, inform and publicize the fact that payment of docking or mooring fees to Vermont marinas may just be a small down payment of what may be awaiting them down the line. As of this moment we still don't know where any such notices are located in or near public or private marinas, tourists offices or information booths.

I would like to point out that I brought this matter to the attention of Governor Howard Dean in a letter dated January 23rd, 1996. I received, on his behalf, a letter dated February 27th from the Vermont Department of Taxes at which time I was told once again that I owed the 5% taxes, which I paid on March the 7th.

I am asking various U.S. and Canadian national boat publications, associations and organizations to inform their boating community, subscribers and/or members as to the above law and policy as applied by the state of Vermont to foreign non-resident boaters.

If the above subject matter is of interest to you do not hesitate to contact me for any further information.

Yours Truly,

Henry R. Keyserlingk
Province of Quebec
Canada