"Gig 601XL Builder" wrDOTgiaconaATsuddenlink.net wrote in message
...

My bet is AOPA will have this cleared up before the week is out.


Maybe not...... It looks like this has been going on for a little while
already.


Maine Revenue Service Jumps On 'Use Tax' Bandwagon Against Aircraft Owners
Tue, 26 Jun '07

Better Keep That Bangor Trip Down To Less Than 20 Days... Or Stay Away
Altogether
Is Maine following Florida down the path to becoming an unfriendly haven for
pilots? Months after ANN broke the news about the Sunshine State's plans to
slap a "use tax" on owners of new aircraft unfortunate enough to then be
seen on airport ramps in the state, it appears tax collectors in the Pine
Tree state are following suit.

The Augusta Morning Sentinel reports a 2005 revision to Maine's tax policy
became effective January 1, that levies taxes on new aircraft owners if
their planes spend more than 20 days a year on the ground there. Like
Florida's controversial tax plan, it is intended to discourage residents of
the state from purchasing planes in states with lesser sales tax, then
flying them back home to Maine.

The tax -- up to five percent of the aircraft's purchase price -- also
applies to out-of-state owners who purchased aircraft within the past 12
months, and then flew those planes to Maine, even if they don't plan to stay
there.

Under the plan, a recent buyer planning to fly their new Cirrus or Cessna to
Maine for an extended vacation, over 20 days in length, would have to make
up the difference between Maine's five-percent tax, and whatever tax they
paid in the state where they actually bought the plane.

The idea is to use the added revenue, which works out to roughly $2 million,
to offset a slight tax cut for Maine residents. Larger aircraft -- those
weighing over 6,000 pounds -- are exempt from the tax.

Officials with the Maine Revenue Service are also requesting flight plan
information from the FAA, so they may track which pilots have recently
purchased affected aircraft... and how much time they're spending in Maine.

The policy is a "short-sighted money grab," says Bill Perry, who operates
Maine Instrument Flight and Maine Beechcraft at the Augusta State Airport
(AUG).

"If you own a plane and a summer home here, or have relatives here and you
want to come and visit for month, you're not going do that," Perry said.
"The state must want these people not to come here. And they won't, because
they're afraid they're going to get nailed on a use tax on their airplane."

Proponents of the plan say the 20-day provision gives pilots enough time to
avoid the tax, which is similar to a fee in place for out-of-state residents
who trailer their own boats to Maine for recreational use.

"I think (lawmakers in 2005) looked hard to find a balance and looked at the
number of days an individual can bring a plane here," said acting state tax
assessor Jerome Gerard. "I think it's pretty reasonable when you consider
that 20 days doesn't include repair time... It's not that unfriendly."

The Aircraft Owners and Pilots Association says levying such fees on
aircraft flying into Maine will likely convince pilots to drive there
instead... or, to avoid the state entirely.

"(The policy) also flies in the face of your emphasis on building a 'fair
and stable business environment,'" wrote AOPA president Phil Boyer, in a
letter to Gov. John Baldacci. "Please know that in the meantime, we will be
advising AOPA's 410,000 members outside of Maine to forgo what might be a
fairly costly trip to your state."

Baldacci spokeswoman Joy Leach told the paper the governor's office is
reviewing AOPA's letter. Similar legislation, that would have handed Maine
pilots a tax bill for repairs to their aircraft, recently died in the final
moments of the 2007 legislative session, according to AOPA