Tuesday, October 27, 2015

Big art collectors look to Delaware to save thousands on sales taxes

ALPHA OMEGA ARTS

Five states, according to Daily Finance have the opportunity to save high-end art collectors millions of dollars in sales taxes. In Delaware, one of the five, The New York Times reports that dealers are opening warehouses to house and sell high priced artworks and avoid New York sales taxes. One example, according to the Times: "Manhattan collector who might owe, say, $887,500 in sales tax on the purchase of a $10 million painting at Sotheby's in New York, would owe nothing by shipping the art to Delaware directly after purchasing it." While the other four states: Alaska, Montana, New Hampshire, and Oregon are not as close to NYC collectors as Delaware, they remain closer than the traditional approach of having the artworks shipped to Switzerland to save on tax collections.