Wed, Jan 05, 2011
Lawmakers Say Taxes Are Inhibiting Brunswick NAS
Redevelopment
Under current law in Maine, non-resident aircraft owners with
airplanes weighing under 6,000 pounds who have them in the state
for more than 20 days are subject to a 5% Maine sales tax, if they
did not pay sales tax in another state. Two lawmakers say they want
to change that law in an effort to spur the redevelopment of
Brunswick Naval Air Station, which has been closed by BRAC.
Maine's Republican Senate President Kevin Raye and Democrat Stan
Gerzofsky, who represents Brunswick, say the law affects those who
buy their airplanes in states which do not charge sales tax, and
then bring them to Maine for service or vacation. Since the
Midcoast Regional Redevelopment Authority, which is charged with
revitalizing Brunswick NAS, hopes to attract aircraft maintenance
companies, they are in favor of the repeal. The Times Record
newspaper reports that the MRRA feels the current tax policy makes
it prohibitively expensive for out-of-state residents to bring
their airplanes to Maine on business.
Senator Gerzofsky cited the owners of Kestrel Aircraft Company,
who he says will often land their aircraft in Portsmouth, NH and
drive the 75 to Brunswick to avoid the 20 day limit and the tax.
Kestrel is in the process of establishing an aircraft manufacturing
plant on the former naval base.
Kestrel File Photo
According to the paper, aviation advocacy organizations like
AOPA have put, in Senator Gerzofsky's words, "a big black star"
over Maine because of the tax. The senator said he hopes that
repealing the tax will make Maine seem more aviation, and business,
friendly.
Florida adopted a similar change to its tax code in May of last
year. A tax is still levied on airplanes that are brought to the
state within 6 months of purchase in a non-sales-tax state for more
than 21 days, but after that 6 month period, aircraft can be
brought to Florida for "an unlimited amount of time for the
exclusive purpose of flight training, repairs, alterations,
refitting, or modification purposes."
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