Backcountry Pilot • Maine use taxes?

Maine use taxes?

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Maine use taxes?

Also saw this on Avweb.com:

Avweb.com wrote:Must GA Pilots Stay Out Of Maine?

That's the question that Steve Kahn and dozens of other pilots are wondering about, after being hit by the state of Maine with tax bills in the thousands of dollars for flying into the state. Kahn, an investment advisor who lives in Boston, flies his Cirrus SR-22 frequently into Maine to visit a summer home and other destinations, and as a volunteer with Angel Flight.

He's been doing that since 2003, but this year, he got a tax bill from the state of Maine saying he owes them a "use tax" that totals over $26,000 with interest. Kahn says he had no way of knowing that flying in Maine would trigger the tax until he got the bill.

"It's so unreasonable and unfair," he says. He has hired a lawyer to appeal the assessment, but since the appeal is heard by the state tax division, he doesn't have much hope of success. If the appeal is denied, he can take the matter to court, but then expenses will pile up fast.

"I'm willing to fight this on principle," he says. "But there is a point where you just give up, even though you know you're right." AOPA has been talking with officials in Maine.

A meeting was set up for this week, but was cancelled due to a snowstorm. "We're working now to set up another meeting, probably in January," Greg Pecoraro, AOPA's vice president for regional affairs, told AVweb on Wednesday. Some pilots who fly into Maine, even if just for a handful of trips, have received tax bills up into the six figures, he says.


That's a bit frightening, eh?
Zzz offline
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So, if I drive into Maine I am subject to a use tax?

How about if I take my sailboat into Maine?

I got it! If I take my train into Maine (it rhymes!) I will be subject to a use tax?

Ahhhh....The pleasures of government! :lol:
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This could lead into something good. Like trading New York north to Maine for Western Canada. This could be the chance to put like thinking people together.
N18NV offline
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An investment advisor with a summer home is a strong clue.

This is not new It happens alot. I had it happen about 10 years ago in Ca.

If your plane is at the airport when they do an inventory for the assessors office your going to get nailed.

And they are freaking relentless in there pursuit until you show proof of paying it somewhere else, then they go away.

If your plane isn't registered in Alaska they will come after you.

I do like the N18NV trade idea :lol:
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didn't somebody post recently that they were being pursued by Oregon on the same sort of deal?
I think if you show use tax already paid somewhere else they back off, but woe is you if you live in a state that doesn't charge it.

Eric
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I'm confused, my aircraft aren't "registered" anywhere. How can any state tax you because you passed through there?
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a64pilot wrote:I'm confused, my aircraft aren't "registered" anywhere. How can any state tax you because you passed through there?


I guess the same way and airport can assess a landing fee -- by spotting your aircraft there and recording the N-number.
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Half a century spent proving “it is better to be thought a fool than to open your mouth and remove all doubt.”

This thing must be based on a property tax, surely it wouldn't hold water that your use of airspace would amount to a large sum.
How can a state that I'm not a resident of asses property tax?
I think there is more here than we are being told about, like someone basing their aircraft out of state to dodge property tax and Maine assesing tax on an aircraft based in Maine?
I'm not buying that if I stay a couple of weeks in Maine on a summer vacation that I would owe that state thousands of dollars, it just dosen't pass the common sense test.
To my knowledge Georgia asses no kind of tax on an aircraft, so am I then fair game for any state that wants to tax me because I landed in their state? How would they collect this tax? Seize my aircraft?
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I would think they had a case IF they can prove that your airplane resides in their state AND that you had paid no sales/use tax in any other state. Washington had a big thing going on several years ago about people who live here and keep their high-dollar motorhomes here, but have them registered to an Oregon address aka PO box. (Oregon has no sales tax & apparently no use tax). Don't know how much of that they had going on but apparently enough to make a bit of a stink about it.
Don't know if they got any use tax out of the culprits but they made the news anyway.

eric
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It doesn't surprise anybody. Maine is the poorest state per capita in the north with the highest tax burden per capita in the nation. Instead of trying to fix the tax burden, lure new industry, and create jobs, the knuckle heads in Augusta would rather squeeze every nickel out of the people that actually pour money into the Maine economy. This is government at its worst.
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Maine use taxes

It is true about the tax.I spoke to the Maine DOR yesterday.If your aircraft is in the state for more than 20 days in 12 calender months it is subject to a tax of 5% of the value! NOT 20 per month but 20 in a year!
I called the Maine dept of tourism and they are pissed about it.They want people to call and e-mail the governor's office to complain about it.
I also contacted several Chamber of Commerce offices at towns that depend on tourism and had airports nearby.These people were unaware and were not happy to hear about the law.
I have family and friends in Maine and will work to dismantle this thing.
Bill
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They probably do not do this with your car or pickup. The reason is that aircraft owners are a small minority and the common folk with the small minds think that airplane owners are rich.

When elected officials use class envy and punish the rich, then our country just gets more fractured.

Are there any other states that do this sort of thing?

Tim
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qmdv wrote:They probably do not do this with your car or pickup. The reason is that aircraft owners are a small minority and the common folk with the small minds think that airplane owners are rich.

When elected officials use class envy and punish the rich, then our country just gets more fractured.

Are there any other states that do this sort of thing?

Tim
Actually, many states DO do it with your car or pickup, and RV too.
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Maine use taxes

I have spoken to many CEOs of chambers of commerce in the State of Maine today.All were unaware that the state was doing this and all saw it as driving much needed tourist revenue away.All indicated they would work to end this practice.
I also contacted LL BEAN corporate in Freeport,ME. At 1.5 billion in sales and promoting the outdoor and tourist industry I figured they might be concerned about this.They were!
I am supposed to hear from someone at the state level tomorrow.I'll keep you posted.(probably get served )
Bill

AOPA told me 130,000 people flew into Maine in light AC last year.The chamber officers and BEAN folks had no problem with doing the revenue math.
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You know if there was an address to send an E-mail complaint, I would. I'm sure others would also.
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This is brilliant! As someone mentioned earlier that our state of maine is one of the poorest per capita....our family median income is 30k ! thats awful! we have thousands of somalies in the state without jobs/homes and for our own gov't to think that putting a tax on arriving aircraft will help the problem? There isn't enough in maine thats worth a few grand a year to see.....I fly from New Hampshire over to Auburn Lewiston all the time, Im wondering how rental planes would be affected? This is a joke and I'm glad AOPA is fighting it....
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Maine use taxes

Here are a couple e-mail addresses

[email protected]

[email protected]

[email protected]

The feedback is that we are having an effect.The e-mails and calls are definitely causing people to take notice.
Bill
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Maine use Taxes

The State of Maine has been responding to inquiries regarding the use tax.

They are mostly quoting the law in the responses and lots of people seem to think it won't affect them.It states that you are only subject to the tax during the first year of ownership if you spend more than 20 days in Maine during that year and have not paid a tax equal to Maine's in another state.
They will not respond to why they think they are entitled to tax a visiting aircraft at all.
What if you bought a nice motorhome and drove to Maine.You spend let's say a month traveling around the state staying here and there and spending money in the local economies.You go home all happy and six months later surprise!There is a tax bill from the State of Maine for 5% of the value of your motorhome.
Does anyone think this is OK?
This really needs to be stopped if nothing else it sets a bad precedent for other states.
AOPA is due to meet with Maine lawmakers in January.We need to make sure that Maine takes the aviation community seriously.
Pilots have been bombarding gov't officials and Chambers of Commerce with e-mails and they are feeling the heat.

Bill
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Maine use Taxes

The Associated Press picked up on the story.It ran Saturday in Portland's Press Herald and The Boston Globe
http://pressherald.mainetoday.com/comme ... 5&ac=PHnws

Check out the reader comments on this at the end of the article.

Interesting that the the guy in Maine who brought attention to this got an e-mail from the Democratic Majority Leader of the Maine Legislature on Saturday Morning.

She said this is insane and we can fix this.
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Have the city people from NV ever been in northern NY?

Hi All Just read this topic and was shocked at the coments from the city people out west. Northern NY is more rual than most of the west today, as most of the people live in and around cities. The liberial attudes you find there are strongly infuidenced by excapeing Califorians. I will give you that southern NY is a waste, but northern NY is very conservitive and sparily populated. The adrondack park is 6 million arcers with about 15,000 people, you do the math.
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