$17 million megayacht sails away tax free
July 7th, 2008, 1:43 pm · 17 Comments · posted by John Gittelsohn
The Orange County Assessor cannot collect property taxes on a $17 million 145-foot megayacht that docked regularly in Newport Beach.
The Assessment Appeals Board unanimously rejected the effort to collect taxes on the Primadonna yacht, owned by Nevada casino magnate Gary Primm, because it “does not feel that the number of days the boat was present justifies assessment by Orange County.”
The assessor’s office demanded $379,000 in property taxes for 2003 and 2007 for the custom-built yacht, which features 17 types of marble, a hot tub for six and twin 1,826 horsepower diesel engines fueled by a tank that cost $60,000 to fill.
In 2004, Primm spent $76,000 to upgrade a slip outside his Newport Beach restaurant, Josh Slocom’s, to accommodate the Primadonna, which stretches half-a football field from stem to stern.
In its decision, issued June 26 but only released to the Register today, the Assessment Appeals Board took into consideration that the Primadonna was flagged in the Cayman Islands and home ported in Barra de Navidad, Mexico. The yacht’s logs show it was present in Orange County 44 days in 2002, 0 days in 2003, 52 days in 2006 and 20 days in 2007. (The finding did not mention 2004 or 2005). The Primadonna also spent 114 days in San Diego in 2006.
“Although the Assessor argued that the Board should consider the boat’s presence in California and not just Orange County, the Board does not believe there is legal support for this argument. Property taxes may be a statewide tax, but it is the county in California that assesses property and the Board believes the property should have ties to Orange County for it to be assessed here,” said the ruling, signed by board chairperson Sherry Mancini.
Primm sold the Primadonna earlier this year. It is now available for charter starting at $170,000 a week.
Related stories…
- Casino magnate balks at paying taxes on yacht
- O.C. sales tax delinquents top state list
- Billionaire Olenicoff’s overseas bankers indicted
- O.C.’s top tax deadbeat said to owe state $2.7 million
July 7th, 2008 at 3:27 pm
Why is this article so focused on the value of the yatch and not the incompetent county assessor? Why not focus on why the assessor not knowing or understanding the law and caused all this commotion? Why not focus on what should be done for their stupidity?
July 7th, 2008 at 3:38 pm
GOOD FOR GARY PRIMM!
taxes are un-american. TAXES ARE ANTI-AMERICAN! this nation was founded by colonists that was sick of taxes. it was only during the first world war that taxes were initiated to help with the war relief. now that politicians tasted our money they want more of it. good for Gary.
July 7th, 2008 at 3:46 pm
Why didn’t the finding mention 2004 or 2005? The article states that the boat wasn’t docked in the OC in 2003.
July 7th, 2008 at 3:59 pm
Why aren’t we glad when rich people bring nice things to OC? Doesn’t it project the image of OC as a place for the rich and famous? Doesn’t this increase property values for everyone? Does it cost us anything for this guy to park his boat in the harbor? If we try to rob every rich person who comes to OC then they will stop coming right?
July 7th, 2008 at 4:10 pm
So the assesor wants to charge $379,000 in taxes for 2003 (when he was docked in Orange County exactly ZERO days) and 2007 (20 days in OC).
That’s about $19,000 PER DAY in taxes!!!! That is outrageous!!
Thank goodness the appeals board rejected this government extortion attempt!
July 7th, 2008 at 4:26 pm
Too bad, that $379,000 sure could have helped some illegal alien families here in OC.
July 7th, 2008 at 4:35 pm
Stern to Stern? I guess the writer is not too acute to nautical terms or what a boat /ship consists of. Stern to Stern? I think it is bow to stern not stern to stern…get your terminology correct. By the way Snarky you are right 100%
July 7th, 2008 at 5:10 pm
The rich get richer and the poor get poorer, but ain’t we got fun?
July 7th, 2008 at 5:22 pm
Well, if he owns Josh Slocum’s then he’s paying property tax on that expensive waterfront property.
July 7th, 2008 at 5:24 pm
Oh, and Bob is correct. The county assessor is incompetent. I’ve had dealings with him myself and he doesn’t discriminate…. He’ll overtax the rich and poor alike.
July 7th, 2008 at 6:08 pm
I think the assessor office was doing there job to assess taxable property. However, It appears they did not have all the facts. Once they did, they corrected the error. The assessor fixed my taxes years ago for something on a much smaller amount. No it did not make the news. If taxes were not so high in the USA maybe the boat would not of been Flagged in the Cayman Islands and home ported in Barra de Navidad, Mexico. Rich people do this, and yes, if we were rich. We would do the same.
July 7th, 2008 at 7:36 pm
i’m moving to the Cayman Islands!
July 7th, 2008 at 7:53 pm
Why does the OCR care when millionares dont pay taxes but the million of illegals that dont pay taxes …the OCR loves.
July 8th, 2008 at 6:31 am
I glad Prmm challenged the assessors office on this one. Hopefully this will set a precedent for others to recoup what the overly aggressive assessors has tried levy on them. Primm has the wallet to fund the challenge, thank you Gary! Go San Marino High!
July 8th, 2008 at 6:54 am
Isn’t it great to see that our gov will go to such great lengths to tax us. As if the millions wealthy people pay in tax over their life times is not enough. How many “poor” do the rich have to take care of? We need to stop being jealous of their success and accept the fact that there will be the wealthy and poor.
Even if a well-to-do person pays 15% tax ( the lowest bracket ) on $10 million, that is $1.5 million for the year or more then many people will make in a lifetime.
We need accept the fact that we don’t have as many toys as they do and stop trying to use laws to take it away from them.
This guy is spending $60,000 on a fill up, pumping a ton of money into our economy… Boy, we better hurry up and force him to relocate to Mexico so he can spend all that dough in a different country.
Thanks OC Gov for pushing more money away from our economy….
July 8th, 2008 at 7:06 am
So if I live in OC and buy a car in OC and park it in my driveway in OC part of the year but leave in Texas ( which does not have personal property tax ) I can get away without registering it in California or OC ?
Wow … I’ll try that on the Highway Patrol when they pull me over.
July 8th, 2008 at 10:17 am
To DrewH:
The expression is “STEM to stern”
“Etymology: based on the literal meaning of from the stem to the stern (= from the front end to the back end of a ship)”