Me

Maine tax hike off the table for now

Legislation that would have handed Maine pilots a tax bill for repairs to their aircraft has died in the final moments of this year's legislative session.

The proposed tax law, Legislative Draft 1925, would have expanded the sales tax and created a new 5 percent sales tax on the repair, maintenance, and installation services of "tangible personal property," including aircraft.

"While this bill would have given most Maine residents a modest income tax cut, it could have also brought a significant increase in costs for pilots," said Greg Pecoraro, AOPA vice president of regional affairs. "This controversial bill died after state senators heard from AOPA members and many others who were opposed to the new taxes."

The proposed tax could have also hurt aviation businesses in the state because aircraft owners might have turned to maintenance shops in nearby states with more favorable taxes. The legislature has adjourned for the year.