State of Maine Use Taxes (Update)

Recently COPA became aware that some aircraft owners have been charged large tax bills by the State of Maine on their recently purchased aircraft, even applying to those who simply visit.  COPA has not received any member’s report that they have been charged this Use tax, but nevertheless, COPA has taken steps to determine if COPA members are at risk. 

We earlier explained that COPA has contacted the State of Maine Revenue Services and received this explanation. (Maine Use Tax)   We followed up with the Maine Revenue Service and pointed out that the explanation does not address foreign citizens or aircraft in general or Canadian visitors or Canadian registered aircraft specifically.   The Maine Revenue Service now indicates to us that they are now considering our request to exempt Canadian aircraft from the Use Tax and they will issue a formal decision and clarification letter to COPA within a few days. 

COPA is continuing a dialog with the State of Maine Revenue Services, as their position on Canadian aircraft is developed, and we continue to point out the absurdity of including Canadian aircraft in an US State internal tax grab.   Most recently we pointed out this tax when applied to us, contravenes the ICAO resolution on aircraft tax policy. Portions of our letter follows:

Good Afternoon all: 

I bring to your attention to the following ICAO resolution document (Doc 8632).   Both Canada and the USA are signatories and members of ICAO that adopted this position on taxes between different states (countries) regarding the sale of aircraft   Please section 3 below in the prelude and extract.   I have included the entire document for your reference as well.    I have taken the liberty of extracting and underlining the provisions I believe applicable. (see below)…

 3. With respect to taxes on the sale and use of international air transport: each Contracting State shall reduce to the fullest practicable extent and make plans to eliminate as soon as its economic conditions permit all forms of taxation on the sale or use of international transport by air, including taxes on gross receipts of operators and taxes levied directly on passengers or shippers;… 

The ICAO website containing the document is here:

http://www.icao.int/icaonet/dcs/8632.html 

… it is clear that ICAO was concerned with precisely the issues raised by such taxes as the Maine Use Tax. 

In the spirit of this policy document, and in order to avoid essential contravention of the principles embodied by this adopted ICAO policy, COPA suggests that the Maine Use tax application policy be amended so that foreign aircraft are not subject to the tax. 

Regards

John Quarterman

Our earlier letter to the governor of Maine, about this tax, is yet to be answered: 

(COPA Letter TO Governor of Maine link)

COPA members should continue to be aware of this issue as we await written confirmation from the State of Maine. COPA suggests THAT COPA MEMBERS CONTACT THE STATE OF MAINE TO ESTABLISH THEIR TAX STATUS, BEFORE ANY TRAVEL TO THE STATE of MAINE BY PERSONAL AIRCRAFT.

 Maine Revenue Service contact information is as follows:  

John Quarterman