dongirod
Joined: 11 Dec 2006 Posts: 140
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Posted: Mon Dec 17, 2007 8:50 am Post subject: Maine Tax |
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Maine Tax Explained — By Maine
Aircraft owners can still explore the wonders of Maine without being taxed on their airplane but they do have to follow the rules, according to a senior Maine tax official. David Bauer, of Maine’s Bureau of Revenue Services, told AVweb his department and other government offices have received "huge volumes of e-mail and phone calls" since AVweb carried the story about Massachusetts resident Steve Kahn’s battle with Maine over its "User Tax." Bauer said the story left the incorrect impression that any visit by an out-of-state aircraft would trigger the tax. "The bottom line is that you should plan carefully if you intend to fly into Maine, and spend more than 20 days in Maine, within one year after the initial purchase of your aircraft and you have not paid a sales or use tax on the aircraft in another state," Bauer said.
There’s nothing new about Maine’s use tax and it also applies to other items of "tangible personal property" like boats (with a 30-day grace period) and, in certain circumstances, cars. Aircraft are perhaps easier to track than other items because most flights leave an FAA paper trail. However, the tax does not apply to any item purchased more than a year before its entry to Maine. There’s also an exemption for aircraft undergoing "necessary" repairs or maintenance (paint and interior work don’t count, for the most part). But Bauer said the vast majority of aircraft owners need not fear the tax. "In most situations, nonresidents flying into Maine do not owe the tax and are not at risk of being assessed," he said. "There are circumstances where a tax will be due, but that is the exception, not the rule." Bauer has promised to enlighten us on Maine’s justification for the tax next week.
Click here for the details of Maine's use tax.
This is in the latest article of AVwebFlash on the Maine taxes, think it helps some!
Don
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