flyeyes
Well Known Member
There is a long thread right now on the Cirrus list about tax collection in Maine.
A Cirrus owner who lives in Massachusetts bought a new Cirrus in Duluth, MN several years ago. The owner lives, works, and has the aircraft registered in MA, which apparently has a sales tax exemption for aircraft.
The problem for him is that he vacations in Maine. The state government used IFR flight records to determine that he traveled in Maine, and is billing him for "use tax" amounting to 5% of the value of the aircraft, plus several years of interest at 12%. The total bill is over $26,000, not including the $5k he has in legal fees to date.
The rules are somewhat arbitrary, but in 2005 they decided to go after people who bought aircraft in states with no sales tax (like Oregon), and who spend at least part of 20 days in Maine in 12 months. They apparently have decided to apply it retroactively to 2000 or so, and are going after aircraft owners who haven't paid a use or sales tax, even if they aren't Maine residents.
I have certainly flown to Maine for vacation in the past (I added up almost 100 days I have spent in Maine in my lifetime, traveling by private plane) but fortunately not since 2000. I suspect that many pilots in the Northeast would spend a lot of time there.
It seems to me that this is terrible policy, and it certainly makes me wary of traveling to Maine again. If any listers are Maine residents or frequent visitors, it might be worth a note to a legislator.
A Cirrus owner who lives in Massachusetts bought a new Cirrus in Duluth, MN several years ago. The owner lives, works, and has the aircraft registered in MA, which apparently has a sales tax exemption for aircraft.
The problem for him is that he vacations in Maine. The state government used IFR flight records to determine that he traveled in Maine, and is billing him for "use tax" amounting to 5% of the value of the aircraft, plus several years of interest at 12%. The total bill is over $26,000, not including the $5k he has in legal fees to date.
The rules are somewhat arbitrary, but in 2005 they decided to go after people who bought aircraft in states with no sales tax (like Oregon), and who spend at least part of 20 days in Maine in 12 months. They apparently have decided to apply it retroactively to 2000 or so, and are going after aircraft owners who haven't paid a use or sales tax, even if they aren't Maine residents.
I have certainly flown to Maine for vacation in the past (I added up almost 100 days I have spent in Maine in my lifetime, traveling by private plane) but fortunately not since 2000. I suspect that many pilots in the Northeast would spend a lot of time there.
It seems to me that this is terrible policy, and it certainly makes me wary of traveling to Maine again. If any listers are Maine residents or frequent visitors, it might be worth a note to a legislator.