SENATOR GERZOFSKY PRAISES THE TAXATION COMMITTEE DECISION TO SUPPORT LEGISLATION THAT WOULD REMOVE THE STATE’S AIRCRAFT TAX

The bill will now go before the full Legislature for a vote and if enacted will help enhance Maine’s aviation industry

AUGUSTA – Yesterday Senator Stan Gerzofsky (D-Brunswick) received unanimous committee support for a bill that would remove the current sales and use tax on small aircraft visiting Maine.

Members of the Taxation Committee combined Senator Gerzofsky’s bill (LD 1096) with a similar bill (LD 946) sponsored by Senate President Kevin Raye (R-Perry) to create one comprehensive piece of legislation.

 “The economic benefits of this bill are great for Maine and the Brunswick region,” said Senator Gerzofsky.

Since the closure of the Naval Air Station at Brunswick, redevelopment efforts have identified the aviation market as a potential partner for the site. Senator Gerzofsky put in the bill to help attract jobs and encourage development in the aviation industry at Brunswick Landing.

Under the proposed bill, small aircraft visiting from out of state would no longer be subject to Maine’s 5% sales and use tax if spending more than 20 days in the state. The enforcement of this tax put Maine at a competitive disadvantage with neighboring states that do not have such a tax.

Senator Gerzofsky stated the tax exemption will help level the playing field for Maine and serve as an incentive for aviation businesses to pursue expansion opportunities and capital investment, instead of locating in a “more-friendly” state.

“I am confident that the revenue generated through new well paying jobs, business investment, and tourism will offset the money lost by repealing the aircraft sales and use tax. In fact, I would not be surprised if it brings in more money to our state.”

Tourism is also expected to experience a boost as a result of allowing nonresident pilots to fly to Maine for business or pleasure without the risk of large assessments of the state’s use tax. Senator Gerzofsky pointed out that plane owners visiting the state on vacation or for business have been receiving tax bills for their stop in Maine. If this legislation were to become law, the tax would not be allowed and we could restore positive experiences of visiting Maine.

“The economic benefits to tourism will go far beyond the benefits for just the aviation industry,” said Senator Gerzofsky. “This is the kind of economic development we need in Maine and it is what the people of this state want – jobs, jobs, jobs.”

The new bill will be reported out of committee and then go before the full Legislature for a vote in the coming weeks.