Does everyone understand the difference between a sales tax and a use tax?   Essentially the consumer owes the tax to his taxing authority on the purchase of eligible goods and the only difference between the sales tax and the use tax is whether the tax is collected by the retailer at the point of sale or whether the tax is paid by the consumer directly to the government.   The retailer collects the sales tax.   The consumer pays the use tax directly to the government.   The most common reason for an individual or a company to pay a use tax is that the retailer is in another state and does not collect tax for the jurisdiction of the consumer.

The best illustration may be particularly relevant to anyone who has ever purchased an automobile in another state.   That tax is due to the state where the vehicle will be licensed at the time that plates are purchased.   Further, it is illegal in all states that I know for a person to license a vehicle in a state other than the state he/she identifies as their residence.   There are exceptions surely but should exceptions include $7 million boats apparently moored in another state for the logical intent to avoid a significant sales/use tax?   http://www.newsmax.com/InsideCover/john-kerry-yacht-sales-tax-rhode-island/2010/07/27/id/365777?s=al&promo_code=A5D4-1

If only for the sake of logical perceptions, John Kerry's boat should be titled in Massachusetts and as a result he should owe that tax to the State of Massachusetts in the form of a Use Tax.   Massachusetts is his resident state, not Rhode Island.  If Kerry is attempting to declare Rhode Island as the residence for the boat the question would have to be whether he ever takes that boat into Boston Harbor.  

States often run dragnets to identify automobiles coming into their state in the evening rush hour or leaving their states in the morning rush hour that have license plates indicating the automobile is titled in the cheaper licensing state and not in the state where the car theoretically spent the evening.   For example, if someone is found driving an automobile that is titled in Oregon but the driver is licensed in Washington State, there are severe penalties.   At one time they amounted to treble damages if someone was attempting to circumvent the tax system and register a vehicle at an office address or the address of a relative or friend.   Boats should be no different.   I suggest that Massachusetts send Mr. Kerry a bill and that Mr. Kerry make restitution.   If this boat is actually titled in Rhode Island I would suggest that they attempt to recover treble damages if their laws allow.