Simon v. Director, Division of Taxation

DeALMEIDA, J.T.C.

This case concerns the calculation of use tax on a sailboat plaintiffs purchased in Maryland and put to use in New Jersey. Shortly after plaintiffs purchased their new sailboat they sold their old sailboat to another couple. Both transactions took place through the same broker, who never took possession of plaintiffs’ old sailboat, but who applied the proceeds from the sale of that vessel to the purchase price of the new sailboat. Plaintiffs, who do not contest application of the tax, contend that when calculating the tax due the Director, Division of Taxation must recognize…