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Maine Seeks to Make Aircraft Tax Exemption Permanent

March 18, 2013

During the 2011 legislative cycle in Maine, a state budget was signed into law that included an exemption for aircraft and aircraft maintenance and repair parts from Maine's 5 percent sales tax. Unfortunately, without additional legislative action, the exemption will end on June 30, 2015. Aviation businesses in Maine are already seeing benefits from the tax exemption and it is critical that NBAA Members become engaged to begin work on extending the exemption beyond 2015.

The administration of Governor Paul LePage has been working hard to attract aviation business to Maine and NBAA is committed to working with his administration on extending this important tax exemption. The Maine legislature has introduced bill LD 279 that would extend the aircraft and aircraft maintenance and repair parts exemption. If this legislation does not pass, the exemption will end in 2015.

Review Bill LD 279 to extend the exemption

NBAA Action

NBAA is working directly with legislators, the Governor's office and Maine based Members to generate support for an extension of this exemption. To date, NBAA has performed the following:

  • Worked with leaders in the Maine aviation community to develop a strategy for extending the aircraft sales tax exemption.
  • Educated Maine based Members about this issue to begin generating support.
  • Working with Maine based Members to encourage testimony at a March 25 public hearing on bill LD 279.

NBAA Member Action

NBAA encourages Members to attend a public hearing on bill LD 279. This hearing provides an opportunity for Members to let legislators know about the importance of preserving this exemption. Many businesses in Maine have already reported seeing increased business as a result of the exemption and any specific details on how the exemption has generated more business or led to new job creation should be discussed at the hearing.

Details on the hearing are as follows:

Monday, March 25 at 10:00 AM
State House Room 127: Committee on Taxation
Augusta, ME

The Maine Legislature provides helpful information on testifying at a public hearing. Review these details.

Maine is home to 50 airports, 36 of which are publicly-owned, serving 2,598 pilots and 1,347 general aviation aircraft. Annually, more than 130,000 visitors to Maine arrive via general aviation aircraft.

Maine is also home to 23 charter flight companies, 12 repair stations, 1 fractional provider, and 1 flight school operating 11 aircraft and providing 9 jobs. In addition, there are 23 fixed-based operators in the state.

For additional information, NBAA's Northeast Regional Representative, Dean Saucier at dsaucier@nbaa.org.