UPDATE on the Maine Sales Tax Issue

Lawreston said:
I don't recall the Thread Title -- and "Search" keeps telling me I have "less than three words in request" BULL! (Chuck?) -- but here is the latest information on the hot item re out of state airplane owners.
http://pressherald.mainetoday.com/story.php?id=158745&ac=PHnws

HR
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article said:
At issue in Maine is the state's "use tax," which applies to many goods and services that are bought out of state and are not subject to the sales tax.

In the case of airplanes, officials say the law allows them to collect a 5 percent use tax from anyone who didn't pay sales tax, if they brought the plane here for more than 20 days, excluding time for maintenance and alterations, in the first year of ownership.

"We're charged with administering the law," said David Bauer, a tax policy analyst with Maine Revenue Services. "We didn't write it."
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That law is NUTS! Are they applying this same law to boats, cars, and trucks that come into Maine for 20 days or more from out of state, or are they targeting pilots?

I could understand this somewhat if they were billing folks who live in Maine and who bought out of state or based their plane out of state to avoid sales tax, but if I'm reading this right they're targeting out-of-state residents who bring their plane INTO Maine for travel, business, maintenance (??) for more than 20 days during the first year of ownership... is that right?!

Nice way to encourage tourism, Gov'ner! NOT!
 
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TangoWhiskey said:
That law is NUTS! Are they applying this same law to boats, cars, and trucks that come into Maine for 20 days or more from out of state, or are they targeting pilots?

I could understand this somewhat if they were billing folks who live in Maine and who bought out of state or based their plane out of state to avoid sales tax, but if I'm reading this right they're targeting out-of-state residents who bring their plane INTO Maine for travel, business, maintenance (??) for more than 20 days during the first year of ownership... is that right?!

Nice way to encourage tourism, Gov'ner! NOT!
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I agree, this is ridiculous policy. But I suspect it's only the beginning.

In an era when a higher percentage of the GDP goes into government coffers than at any previous time in history, state governments are still "strapped" for money. They collect more dollars than they ever have collected before, and yet they still don't have enough; and they are open to any solution except spending less money.

The best solution, though, is one that doesn't alienate people who live (and vote) within the state. So a lot of state governments are aggressively pursuing revenue from sources outside their own electorates.

I collect sales taxes in those states in which I actually, physically conduct business. But I occasionally receive threatening letters from other states in which I have neither set foot nor have a business presence, who claim I owe sales taxes for stuff I sold on eBay, or for Web design or hosting services provided to someone in their state. I basically tell them to go ahead and take me to court. None of them have done so. Whether this is because the amounts are so trivial or because they know they're on shaky legal ground, I can't say.

Rich
 
I want to clarify that I'll not participate -- as a Maine resident, and a plane owner -- in this potential shooting contest. I've posted the latest publicity of the matter for the knowledge of those welcome out-of-staters (my guest room is "OPEN") who might not be familiar with the blasted law which does have a legislator in the process of trying to initiate changes to the statute. Also, Phil Boyer is ragging at the referenced "Old Baldy"(our governor). Stay tuned.

HR
 
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