Strengthening the Aviation Business at Brunswick Landing and Throughout Maine

There is a lot of buzz around the State House on removing government red tape and making Maine a more business-friendly state. In all honesty, this is not a new idea in the Maine Legislature and it is has been addressed in every session (that I have been a part of). I am proud of my track record for bringing quality jobs and economic development to our region; and this year will be no different.

This session I have sponsored a bill that will encourage economic growth and reduce a burden to our aviation industry.

Right now, aircraft under 6,000 lbs. and parts and components purchased or leased and used in Maine are subject to a sales and use tax according to Maine Law. This means that an aircraft purchased in another state, but spends more than 20 days in Maine, would become responsible to pay taxes equal to 5% of the value. As one can imagine, the tax bill from our state does not go over too well, especially when the aircraft owner may not have even paid much of a tax in the state of residence.

In fact, representatives of Kestrel Aircraft land their planes in Portsmouth and drive to Brunswick to avoid facing a tax bill. This is certainly not friendly to the business community and it is counter-productive to our work to attract business to the region.

Without the repeal of the current tax on single-engine and twin-engine propeller driven aircraft, Maine will remain at a competitive disadvantage since this taxing situation is not used in our neighboring states. My bill calls for the repeal of the current sales and use tax law on aircraft and repair or replacement parts used exclusively in aircraft or in the overhaul and rebuilding of aircraft.

The economic benefits of this bill are great for Maine. It would encourage out-of-state consumers to patronize Maine businesses for aviation products and services. The level playing field will support current aviation businesses to pursue expansion opportunities and investment in our state, as opposed to leaving to a “more-friendly” state.

As for the impact to our region, the success of this bill will help Brunswick Landing take another step in our efforts to make it a world-class aviation complex. The direct positive result will be the addition of up to 1,000-plus quality jobs through new businesses.

An additional plus to this bill is that it would help promote Maine’s tourism industry. Over the years, plane owners visiting our state on vacation or for business have been receiving tax bills for their stop in Maine. If this bill were to become law, this negative practice would not be allowed and we could restore positive experiences of visiting Maine.

I am confident that the revenue generated through new 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 region and state.

This is the kind of economic development we need in Maine and it is what the people of this state want.