Stay outta Maine guys.....

[undatc]

Look at what popped in my avweb mailer this morning..

http://www.avweb.com/eletter/archives/avflash/1010-full.html#196716

Must GA Pilots Stay Out Of Maine?

That's the question that Steve Kahn and dozens of other pilots are wondering about, after being hit by the state of Maine with tax bills in the thousands of dollars for flying into the state. Kahn, an investment advisor who lives in Boston, flies his Cirrus SR-22 frequently into Maine to visit a summer home and other destinations, and as a volunteer with Angel Flight. He's been doing that since 2003, but this year, he got a tax bill from the state of Maine saying he owes them a "use tax" that totals over $26,000 with interest. Kahn says he had no way of knowing that flying in Maine would trigger the tax until he got the bill. "It's so unreasonable and unfair," he says. He has hired a lawyer to appeal the assessment, but since the appeal is heard by the state tax division, he doesn't have much hope of success. If the appeal is denied, he can take the matter to court, but then expenses will pile up fast. "I'm willing to fight this on principle," he says. "But there is a point where you just give up, even though you know you're right." AOPA has been talking with officials in Maine.

A meeting was set up for this week, but was cancelled due to a snowstorm. "We're working now to set up another meeting, probably in January," Greg Pecoraro, AOPA's vice president for regional affairs, told AVweb on Wednesday. Some pilots who fly into Maine, even if just for a handful of trips, have received tax bills up into the six figures, he says.

[PiperGirl]

This Is INSANE!

Here's some more info:


 
 
 
 

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.



Perry believes the new taxes will keep away the planes that keep him, and others, in business.

"Sure, the state may be taking in $2 million, but how much have they lost from people who are saying they will stay right out of Maine?" he asked. "I think they've really shot themselves in the foot this time."

http://www.aero-news.net/Community/DiscussTopic.cfm?TopicID=5980&Refresh=1

[undatc]

This is pretty crazy if you ask me.  We're slowly become the NavCan system, out of date, under paid, over worked ATC, with an administration that thinks its ok to charge people to use the airspace.  The next few years as a pilot/ATC aren't going to be fun....

[Oddball]

so tell me how can they charge tax? is this on top of landing fees as well?

[airtac]

so tell me how can they charge tax? is this on top of landing fees as well?

Not sure about the tax formula but there aren't any landing fees------   I have never paid a landing fee at an American airport.

[undatc]

There are landing fees, or if you want to call them, tie down fees.  Most of the time if you buy gas, the FBO will wave the fee but if you don't they can charge you.  I have a buddy that has a 150 and hes been charges almost 30 bucks at one airport. 

But as for true landing fees, GA pilots don't have to pay them, that only comes into play if you land at a class B airport and are above a certain weight based off the make of your aircraft.  So unless your John Travolta, i wouldn't worry about it to much.

[Baradium]

They calculate the tax at a % of the aircraft's value.

It's of very dubias legality.... in other words it's not legal.

It's being fought and will hopefully be taken care of soon enough.

[BrianGMFS]

I know alot of Maine based repair shops are feeling the pinch because of this. I mean if you take your plane to a shop in Maine, and you live somewhere else, if it's there more than 30 days you get the tax.... Ridiculous. One of the best aircraft paint shops on the east coast is in Oxford Maine.... I know most aircraft paint jobs take more than 30 days.....


Brian

[Baradium]

I know alot of Maine based repair shops are feeling the pinch because of this. I mean if you take your plane to a shop in Maine, and you live somewhere else, if it's there more than 30 days you get the tax.... Ridiculous. One of the best aircraft paint shops on the east coast is in Oxford Maine.... I know most aircraft paint jobs take more than 30 days.....


Brian

I seem to remember there is a supposed exemption for repairs, but I imagine a lot of pilots are avoiding them just to be on the safe side.  Even if it's exempt, having to fight to prove it still costs money.

[Rooster Cruiser]

so tell me how can they charge tax? is this on top of landing fees as well?

Not sure about the tax formula but there aren't any landing fees------   I have never paid a landing fee at an American airport.

Then stay the Hell away from Santa Monica airport in the LA Basin, Jim!  Every time I land there, the city sends me a bill through the mail in about two weeks charging me a "landing fee" of around $20!  In addition to that, most large airport FBO's like Signature, Millionair, Atlantic etc. will charge you a "Ramp Fee" if you do not buy their ridiculously overpriced fuel.  It is usually the lessor of two evils to just pay their ramp fee since its usually less than the difference in price of their minimum fuel.  I just hate the idea of paying $6.75 per gallon for Jet A that I can easily tanker from home for about $2.50 per gallon less.  Since most FBO chains have a 100 Gallon minimum to waive the ramp fee, they lose out on my fuel sale.

As for the State of Maine...  They appear to have written some very bad tax law here, which should eventually be knocked down in Federal Court as Unconstitutional since it infringes on the Interstate Commerce clause of the Constitution.  Until then, Maine will probably lose much more tax revenue than this law claims to raise because flying vacationers will boycott the state and go elsewhere with their airplanes and more importantly, their vacation budgets.  Of interest is the fact that this "Tax" only applies to aircraft under 6000 pounds Gross Weight.  The State of Maine is baldly proclaiming by this law, "Come on up all you fat-cat Bigwigs!  Bring your King Airs, Citations, Gulfstreams and BBJ's!  We only soak the little guys around here in their Bonanza's and Cessnas."

What a crock.   

[airtac]

OK,-------- won't be hard to stay from Santa Monica (unless they have a fire)

[Mike]

so tell me how can they charge tax? is this on top of landing fees as well?

Not sure about the tax formula but there aren't any landing fees------   I have never paid a landing fee at an American airport.

Then stay the Hell away from Santa Monica airport in the LA Basin, Jim!  Every time I land there, the city sends me a bill through the mail in about two weeks charging me a "landing fee" of around $20!  In addition to that, most large airport FBO's like Signature, Millionair, Atlantic etc. will charge you a "Ramp Fee" if you do not buy their ridiculously overpriced fuel.  It is usually the lessor of two evils to just pay their ramp fee since its usually less than the difference in price of their minimum fuel.  I just hate the idea of paying $6.75 per gallon for Jet A that I can easily tanker from home for about $2.50 per gallon less.  Since most FBO chains have a 100 Gallon minimum to waive the ramp fee, they lose out on my fuel sale.

We HATE going there with our helicopters. On top of all this mess we have to call ahead, only have one helipad left to land on and have to watch for their ridiculously strict noise procedures....
Looks like the whole airport might go away soon. You can tell by the signs.... 
Maybe Santa Monica WILL burn one day and they change their mind after they see how nice it would be to have an airport close by....

[Rooster Cruiser]

Who wants to volunteer starting the fire?  Good old Hanoi Jane (Fonda) owns a house there, and she is one of the most strident critics of airplane noise in the city of Santa Monica.  Perhaps a Molotov Cocktail party might be in order???   

[Oddball]

well i could have a "accident" with one of my R/C planes i dont need any more strip it for any usefull parts,burn it and let the fire get out of hand and see what happens 

[PiperGirl]

so tell me how can they charge tax? is this on top of landing fees as well?

Not sure about the tax formula but there aren't any landing fees------   I have never paid a landing fee at an American airport.

Lucky!!!! we routinely get charged landing fees or ramp fees when our flight students go on their cross country trips. When they fly the Aztec, we get some pretty hefty fees. We always try to get our students to avoid those airports . Like RC said... about 2 weeks after the flight we get a nice big bill in the mail...