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."

FMI: www.mrra.us