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Plane owners stunned by out-of-state taxes
Boston Globe ^ | December 30, 2007 | Clarke Canfield

Posted on 12/30/2007 1:49:31 PM PST by Daffynition

PORTLAND, Maine - When Steve Kahn got a $26,000 tax bill on his airplane, he thought Maine Revenue Services had made a mistake. Kahn lives, works, and keeps his plane in Massachusetts.

But the bill was no error. It was part of the agency's efforts to collect taxes on aircraft owned by out-of-state residents, even though they bought their planes elsewhere and brought them to Maine only to visit.

A number of other states, from Florida to Washington, are doing the same as they grapple with budget shortfalls and as the Internet makes it easier to track the comings and goings of aircraft.

Many pilots are outraged.

"At best what Maine is doing is underhanded and devious; at worst it is illegal," Kahn said. "Either way, it's wrong."

Maine officials say they are simply enforcing the state's laws when they send bills, into six figures, to out-of-state plane owners.

At issue in Maine is the state's use tax, which applies to many goods and services bought out of state that are not subject to sales tax. In the case of airplanes, tax officials say, the law allows them to collect a 5 percent use tax from people who did not pay sales taxes on their planes if they brought their plane to Maine 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."

(Excerpt) Read more at boston.com ...


TOPICS: Business/Economy; Government; US: Maine; US: Massachusetts
KEYWORDS: aviation; corruption; maine; massholes; revenueservices; somalia; taxes
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To: Daffynition

Oh boy, this is going to piss off the airlines!

Mark


121 posted on 12/30/2007 5:42:25 PM PST by MarkL
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To: karnage
Money-grubbin bastids.

That is why I don't vote for the bastards... it only encourages them!

122 posted on 12/30/2007 5:44:36 PM PST by John123 ("What good fortune for the governments that the people do not think" -- Adolf Hitler)
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To: Daffynition

Well.... Maybe Ron Paul does get it when it comes to taxes....


123 posted on 12/30/2007 5:49:44 PM PST by Walker Texas Ranger
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To: NRA2BFree

What if your internet packets go through Maine? Is there a sales tax on that?


124 posted on 12/30/2007 6:12:53 PM PST by gitmo (From now on, ending a sentence with a preposition is something up with which I will not put.)
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To: Daffynition

He lives in Massachusetts. Tell Maine to shove it and never go there again.


125 posted on 12/30/2007 6:35:27 PM PST by SALChamps03
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To: Radix

The average bass boat costs more than the average private plane. 26 K is a lot of money to most people.


126 posted on 12/30/2007 6:47:07 PM PST by SALChamps03
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To: MarkL

Use tax doesn’t apply to then coz of their weight.

“88. Aircraft. Sales or leases of aircraft that weigh over 6,000 pounds, that are propelled by one or more turbine engines or that are in use by a Federal Aviation Administration classified 135 operator.”


127 posted on 12/30/2007 6:59:30 PM PST by Daffynition (The quieter you become, the more you are able to hear.)
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To: gitmo
What if your internet packets go through Maine? Is there a sales tax on that?

Good question. Hopefully, they don't figure it out, or they will probably tax that too.

Personally, I know mine doesn't go through Maine because I'm on wireless.

128 posted on 12/30/2007 7:03:45 PM PST by NRA2BFree ("The time is near at hand which must determine whether Americans are to be free men or slaves!")
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To: Man50D
Amen to that ...

From ANN and a quote from Louis Meiners, attorney/pilot:

"As many ANN readers are aware, Maine has been trying to tax pilots flying their aircraft into the state for extended periods of time. To help avoid this issue, Meiners recommends suppressing your N number. It is "too easy for states to arbitrarily send out notices to people." explains Meiners. The NBAA designed the Block Aircraft Registration Request (BARR) program, which prevents your airplane from being identified by flight tracking software. This increases your privacy and makes it harder for states to stick taxes on aircraft that are not based there."

Pilots are hiding their float planes in coves and planning not to buy any fuel for their craft when they are there.

129 posted on 12/30/2007 7:06:10 PM PST by Daffynition (The quieter you become, the more you are able to hear.)
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To: NRA2BFree; gitmo
Actually, I think that this is related to Internet purchases that arrive in ME without paying the sales tax.

I am astounded that they have extended it to private airplanes, but they probably did it because many legislature members owned private planes and they knew how to track them.

I do wonder how many exceptions are built into the law, as the “classified 135 operator”.

My guess is that there are many personal exemptions for certain members of the public, who happen to be friends of said legislature.

130 posted on 12/30/2007 7:39:12 PM PST by texas booster (Join FreeRepublic's Folding@Home team (Team # 36120) Cure Alzheimer's!)
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To: USNBandit
I had a military buddy that was stationed in Kalifornia for a couple years. 5 years after leaving California he was denied a house loan because the State of Kalifornia had placed a lien against him for state income tax.

Flip side: One of my older brothers graduated high school in California, and enlisted in the USAF. He was sent to Texas for training, then back to Europe.

He came back to Texas a couple of times for stateside duty & further training, always returning to Europe.

He bought & kept a house & car in Texas; obtained a Texas drivers license, etc.

Went back to Europe, then finally retired, after 20 years, requesting & recieving his discharge in Texas, where he still owned his property.

California filed liens for unfiled state taxes, from the time he changed his residency to Texas, until the time he retired, on the basis that he enlisted as a California resident, so he remained a California resident, and COULD NOT change said residency, until returning to the state to be discharged, THEN moving out of state as a civilian.

Oh, yes; they also felt entitled to part of his retirement pay, since he had earned it 'while a California resident'.

I left in '84, and haven't looked back; I also converted my retirement fund to cash when I left, so they wouldn't have future claims against me. That money helped finance the move, by making up most of my Jimmahcarterization losses. If Reagan hadn't won, I'd still be trying to earn my way out of that Hell-hole.

131 posted on 12/30/2007 10:07:26 PM PST by ApplegateRanch (If God didn't want a Liberal/RINO hanging from every tree, He wouldn't have created so much rope!)
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To: Daffynition
these idiot legislators will be taxing RVs next. Maine cannot afford the fallout.

How about THIS RV?

They going to limit campaigns to 20 days or less? Bwaaahahahaha!

132 posted on 12/30/2007 10:21:04 PM PST by ApplegateRanch (If God didn't want a Liberal/RINO hanging from every tree, He wouldn't have created so much rope!)
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To: SALChamps03
The average bass boat costs more than the average private plane.

Huh?
133 posted on 12/30/2007 10:47:44 PM PST by armydoc
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To: Mr Rogers

Agree.

What this country needs is a tax revolt, more particularly an old fashioned tax revolt. The sort in which politicians fear for their personal safety.


134 posted on 12/31/2007 3:59:25 AM PST by Jacquerie (The Forgotten Clause - ". . . Or prohibit the free exercise thereof.")
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To: Clemenza

NY also has a nifty surcharge on your hosptial bills, IIRC.....


135 posted on 12/31/2007 4:02:59 AM PST by cherry
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To: cherry

Yep. Wanted to scream when I saw that on my grandmother’s bill last year.


136 posted on 12/31/2007 4:03:31 AM PST by Clemenza (Ronald Reagan was a "Free Traitor")
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To: ApplegateRanch

IIRC the California Tax Gestapo is called “The State Board of Equalization.” Now there is truth in advertising. I had a situation somewhat similar to your friend. I had to hire a bad a$$ CA tax attorney to call the state’s bluff; they folded like the proverbial house of cards.


137 posted on 12/31/2007 4:18:16 AM PST by Jacquerie (The Forgotten Clause - ". . . Or prohibit the free exercise thereof.")
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To: Froggie

I know all that. But, I am talking about a tax directly tied to the exact miles you drive every year.


138 posted on 12/31/2007 4:49:26 AM PST by RetiredArmy (Better prepare, come Nov 08, we have a Marxist Commissar President and Marxist Congress.)
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To: Jacquerie

I hate to see cases like this.

I work for one of the Big 4 accounting firms in state and local tax. Corporations and individuals did not traditionally put any effort into understanding their tax liabilities. Once the corporations started, the states started going after small business owners and individuals.

Of course, the firms (accounting and law) are fairly active in “tax reform” at the state level. The more complex and convoluted the solution the more they are likely to support it. They just explain to the legislatures that it a) is good for the finances of the state (for the Repubs) and b) more progressive (for the Dems). Then they market their services with, “Confused with the new law? We helped write it. Hire us!” In the end, the clients who pay the toll get the benefits.

If you really want to get angry, check out the streamlined sales tax project (http://www.streamlinedsalestax.org). Several states have colluded to create a pseudo government that writes regulations and claims to make requirements on remote sellers. The governing board is appointed, not elected, and they claim to exercise a lot of power. Who do you think advises these guys?

I’ve been doing this for over ten years and it has radicalized my politics. Both Republicans and Democrats are completely out of control. These people must be stopped.


139 posted on 12/31/2007 6:22:44 AM PST by cizinec
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To: ApplegateRanch

HAHAHA!


140 posted on 12/31/2007 7:39:28 AM PST by Daffynition (The quieter you become, the more you are able to hear.)
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