The Maine Supreme Court is now considering two cases challenging the State's ability to impose use tax on aircraft that fit within certain exemptions to the Maine sales and use tax law. The aircraft at issue were generally owned by nonresidents, were purchased and delivered outside of Maine, spent most of their time outside of Maine, and were not registered in Maine. The aircraft owners argue that these exemptions prevent their aircraft from being subjected to Maine use tax while the State contends that these exemptions should apply only to aircraft purchased in Maine and subsequently removed from the State. One of the cases presents an additional issue applicable to leased aircraft and yachts. The cases have been fully briefed, and we are awaiting oral argument to be scheduled before the Maine Supreme Court. A decision is expected in late 2010 or early 2011. Many other cases involving aircraft assessments are on hold pending the outcome of these decisions.
If you are concerned about Maine sales and use tax liability on aircraft, yachts or boats, please contact us.
Jon Block
