Freeports play a sizable role in the global art trade, yet many collectors and even industry insiders still don’t fully grasp their utility. Sales tax in New York State, for instance, is 8.75 percent, so a $1 million painting purchased in Manhattan would run the buyer an additional $87,500. That client believed that after a year, the painting could be sent back to New York without owing sales tax. The artwork was shipped to his New York residence, but the New York State Sales Tax Department learned of it when auditing the Delaware freeport. Freeports, which are more often than not located outside of the U.S., are similar in look and function to fine art storage facilities.