Last week I wrote a letter to Maine’s Governor Baldacchi asking to explain the states GA ‘use tax’ and this was the response I got on Friday from the Deputy Commissioner from the Department of Administrative and Financial Services:
“Thank you for your recent correspondence to Governor Baldacci regarding the imposition of Maine’s use tax on aircraft. The Governor’s office has asked that I review your concerns and respond on his behalf.
Much of the contact we have received about this issue followed a story in the Aircraft Owners and Pilots Association (AOPA) newsletter and on the AOPA website about AOPA President Phil Boyer’s June 7, 2007 letter to Governor Baldacci. I responded on the Governor’s behalf by letter dated June 21, 2007, addressing the issues that Mr. Boyer had raised.
Since that time, a great deal of incomplete and inaccurate information has been circulated concerning the application of Maine’s use tax to aircraft.
There are indeed certain situations in which a use tax is owed when an aircraft that is based outside of Maine is brought into this state, and I am satisfied that Maine Revenue Services is properly administering the laws that have been enacted by the Maine Legislature.
However, in most situations there will be no use tax consequences when an aircraft is flown into Maine. It depends on the particular facts of the case. The attached document gives a good overview of the relevant principles.
One key thing to remember is that Maine use tax is not even an issue unless an aircraft comes into Maine within the first 12 months after its purchase by a nonresident. And even if the aircraft is present in Maine within the first 12 months for purposes other than repair and maintenance, no Maine use tax is due if sales or use tax of 5% or more was paid in another state. Finally, even if an aircraft is present in Maine within the first 12 months after its purchase by a nonresident, no use tax is due if the aircraft is here for no more than 20 days during the 12 months following its purchase.
If you have further questions, please contact Maine Revenue Services directly. David Bauer, a staff attorney, will be glad to help you. He can be reached at (207) 791-8188, or by e-mail at david.e.bauer@maine.gov.
Thank you for taking the time to share your views on this important topic.
Sincerely,
Domna Giatas, Deputy Commissioner”
I was very happy to recieve a quick response from the office. She also sent me an attachment explaining the law in more detail. Its exactly the same one AVweb published on their website the other day.
December 28th, 2007 at 8:48 pm
Interesting. I’ve only just started flying in Maine and haven’t flown GA here yet, but I’ve gotten a lot of questions about the tax and what my thoughts are on it. It’s good to actually read something about it other than three line news articles finally. It still sounds complicated, but perhaps less excessive than a lot of people have made it out to be?
Teller
December 31st, 2007 at 8:56 am
Yes - less complicated. Essentially all you to do to avoid any of the taxes is to wait a year after you purchase your airplane. Not to hard to do considering the only time you want to visit ME is in the summer anyhow. The rest of the year is a cold blistery hell.