A New Zealand yacht built for multimillionaire American politician John Kerry has triggered a small political storm because the senator - who has repeatedly voted to raise taxes while in Congress - avoided a six-figure state tax bill on the vessel by mooring her in the nearby state of Rhode Island.
Mr Kerry, the senior senator for Massachusetts, bought the 23m yacht Isabel in March for $US7 million, but avoided the state's 6.25 percent sales tax by mooring it in sales-tax free Rhode Island. Massachusetts raised its sales tax from 5 percent to 6.25 percent last year to raise about $US900 million to help balance the state budget.
Sources said Mr Kerry saved about $US437,500 in sales tax and an annual excise tax of about $US70,000.
But a Kerry spokesman said the Isabel was moored in Newport for long-term maintenance and not to take advantage of the lower taxes. Sources told the Boston Herald that the senator was demanding that some warranty work be done.
The senator was seen inspecting the yacht - built by Friendship Yachts at Whangarei - last December, but boatbuilder Dennis Maconaghie said at the time that he could only say it was going to a North American client.
The yacht took two years to build, with Edwardian-style, glossy varnished teak interior, two VIP main cabins and a pilothouse fitted with a wet bar and cold wine storage.
The boat was designed by Rhode Island naval architect Ted Fontaine and delivered to him, then sold to Mr Kerry, who is married to tomato sauce heiress Teresa Heinz.
The Isabel is registered as owned by Great Point LLC of Pittsburgh, Pennylvannia, Ms Heinz' home town, and Great Point is a lighthouse in Nantucket, where Mr Kerry has a waterfront mansion.
The NZ construction also caused a fuss because New England boatbuilders were struggling to find work, the Boston Herald reported.
"Darn, that would have been a wonderful job for a Maine builder," said Jane Wellehan, president of the trade group Maine Built Boats.
"If someone comes to build a $US7 million boat that would employ half the population of some towns for a year or two."
And Gregory Egan, who owns the Crosby Yacht Yard in Massachusetts, said it seem a poor choice from a political point of view: "I'm confident that anything constructed in New Zealand could be constructed here in the state."
