Sunday, December 30, 2007

Out-of-state taxes for airplanes

There's the Maine way, and then there's the American way. The Boston Globe (via the Associated Press) reports on the situation where Maine is taxing out-of-state pilots. This has been kicked around on a few bulletin boards.

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.

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