Be careful in Maine - Page 2

allbee · #11 12-21-2007, 10:15 AM

tell us more on this. I for one hate it that someone can get my information with my tail number, would this take care of this infringment.

ccarter · #12 12-21-2007, 11:05 AM

Quote:

Originally Posted by the_other_dougreeves

Update: The Maine Revenue folks must have gotten word that pilots were "curious" about their new policy. AOPA carried this clarification today:

Thanks to numerous pilots' calls to the Maine Revenue Service, the department has clarified its use-tax policy on out-of-state aircraft. Changes to the state's tax law went into effect Jan. 1, 2007. During the first 12 months after an aircraft is purchased in a state without a sales tax, the current use tax will only be assessed on that aircraft if it is in Maine for more than 20 days, cxcluding time for maintenance.

So there you go.

TODR

I live in Tennessee where there is no state income tax, plenty of sales and use tax but no state income tax. I paid "voluntarily" a use tax on my RV when the components came in... it wasn't cheap. I still worry that some "smart guy" in some state audit some where some year will decide I didn't do something right or they will change the law retroactively and I'll get wacked down the road... very unexpectedly. The usual "penalties and interest" will follow.

I feel like I'm walking in a mine field to be honest with you. The way the Maine law reads it sounds like a money grab from your home state who decided to generate revenue in a different way, so the state of Maine decides they will trump up a way to grab the cash your home state left on the table. I think it is an ill conceived law and will hurt the state economy in the end.

Years ago some countrymen of ours had a tea party over what amounted to about a 2% tax. What percentage are we all paying now?

WildBill · #13 12-21-2007, 11:14 AM

Well, numerous corporate aircraft operators block their numbers from being used to follow them, for competitive and security reasons. I sure this must be available to other private operators as well. What follows are purely suppositions:

I suppose what maine was doing was using one of the free sites to follow movements into and out of the state, then once they have "a fish", they threaten the owner with a tax bill, and if it ever went to court they would file a request with the faa to get official records to be used in court.

I suppose the state could have their own data feed (I don't think this is cheap), but I am not sure if the faa would unblock the blocked ones for them. But this would be an extra expense for the state; which might not matter as I hear they are near the top taxing state in the country.

If free sites are the source of the states initial "bites", if you block your number, you may never show up on their "fish finder".

I hope that privacy becomes more of an issue before mode-S or ads-b becomes widespread, as it apparently offers no privacy right now. The home hardware is already available to follow an aircraft within range of the hardware's receiver. (get a few receiver-station-servers linked together via the internet and you have a problem).

If someone is really worried about having flown ifr to maine (for 3 weeks) they could wait for a nice day, file ifr back across the line, then fly the reverse vfr. (or enroute to maine, if the wx is good, change your ifr destination to some non-maine border town, then cancel ifr).

Let the "evidence" work for you. :]

allbee · #14 12-21-2007, 11:17 AM

I found that in my 900hrs in the last 4 years that it is a good idea to:

limit your visual- meaning if they can't see you it won't hurt them.

limit your transmission- if they can't hear you, then they can't go after you

limit your noise- if they can't hear you then they can't see you and then they can't do you any harm.

of course this goes for people on the ground.

When it comes to things like this, just fly in without any prenotice. heck with em. Go to airports that don't have a tower. I feel that if you did go into a tower airport and call in from 10miles out isn't going to alert anybody either so I think that is safe.

I truelly believe when you are dealing with the above about somebody on the ground your worse enemy will be another pilot, sad, but very true.

kentb · #15 12-21-2007, 11:19 AM

I live in Oregon. We don't have sales tax. We run our state services with income tax. Why should Maine get to decide that we are doing it wrong in Oregon, or any other state?

I understand that if you live in Maine and are trying to avoid sales tax by buying else were and not reporting it, that they should want to collect tax on that purchase.

It seams that this policy is only going to hurt tourism. If I ever get back East to vacation, I will be very careful to either avoid Maine or stay for a very short time.

I don't want to offend anyone from Maine, but you guys need to get your representatives to get with the program and support out of state money coming in.

I was also upset when I heard that Oregon State Aviation was charging landing fees to out of state visitor for Vans Home Coming. I called them to get the answer and they agreed that it was a mistake.

Kent

AndyRV7 · #16 12-21-2007, 07:01 PM

Quote:

Originally Posted by kentb

I live in Oregon. We don't have sales tax. We run our state services with income tax. Why should Maine get to decide that we are doing it wrong in Oregon, or any other state?

I understand that if you live in Maine and are trying to avoid sales tax by buying else were and not reporting it, that they should want to collect tax on that purchase.

It seams that this policy is only going to hurt tourism. If I ever get back East to vacation, I will be very careful to either avoid Maine or stay for a very short time.

I don't want to offend anyone from Maine, but you guys need to get your representatives to get with the program and support out of state money coming in.

I was also upset when I heard that Oregon State Aviation was charging landing fees to out of state visitor for Vans Home Coming. I called them to get the answer and they agreed that it was a mistake.

Kent

I agree 100%. As a matter of fact, I think it should be illegal. If I didn't lose something in the translation, Maine should NEVER be able to take anythin from a non-resident. That's like a financial spiderweb. Come too close and we got you! Frankly, I can't see how it can stand up in court. What jurisdication does another state havee over your property or finances!?

The vacationland ...

smoore · #17 12-21-2007, 07:30 PM

I don't even understand how a state can tax a transaction that took place completely out of state.

Say I'm a Maine resident and I drive somewhere else to buy something. Why should Maine be able to collect tax on this transaction? It didn't happen on Maine soil, therefore Maine has nothing to do with the transaction. People dodge unfair taxes like this for a reason. It's unfair.

Lets not even go into why they can collect sales tax on anything used that's already been taxed at the initial purchase. Any time I hand anyone money, the state wants to collect tax on the transaction. (I have no idea if this Cirrus was used or new).

aparchment · #18 12-21-2007, 08:01 PM

I haven't chimed in on this thread because I live in Maine, and I find this shameless grab for money both embarrassing and infuriating. We are not a wealthy state. We derive a significant portion of our revenue from people who vacation here. Our state moniker is "Vacationland." One of the first signs that you see when you enter the state on I95 is "Maine, The Way Life Should Be." Clearly we are conveying to visitors that we would like them to visit, stay, live etc.

Now our less than intelligent governor and his cronies in the state house have concocted yet another way to make our state less then appealing to those who generate the revenue that keep this state alive. What can I say. I have seen idiocy, jealousy and poor fiscal policy ruin other economies. I hope it doesn't get that bad here.

Living in tax free NH is looking more appealing by the day --- particularly with my recent job offer in Boston

aparchment · #19 12-21-2007, 08:06 PM

To follow up on Sean's comment -- yes Maine seeks to grab sales tax on any item purchased out of state and used in state.

If I purchase a car in tax free New Hampshire, I have to pay sales tax when I register the car in Maine. Not only that, but our annual registration fee is based on the residual value of the car.

I have to pay sales tax on all of the airplane parts I buy out of state. If I don't pay it up front, I will have to pay it when I register the plane.

Frustrating.

plehrke · #20 12-22-2007, 03:23 AM

A friend of mine's Dad bought a plane while he lived in Ohio which did not require sales tax to be collected on purchases of vehicles between individuals. Several years pasted and they moved to Wisconsin. Wisconsin knew the law in Ohio so knew that no sales tax was collected and charged him sales tax on the purchase because now he was a Wisconsin resident. He tried to fight it but ended up paying. Isn't Wisconsin supposed to be one of the airplane friendly states? Maybe the law has since changed as this happened 15 years ago.
It would be nice if AOPA or someone had a website with all these "gotch ya" laws that the different states have. Drawing attention to these issues helps getting states to change them.