Critics decry boat tax in Maine

Author:
Updated:
Original:

Boat owners in Maine, who buy their boats in other states, but use them in Maine, may find an unexpected tax bill in their mailbox.

Maine Revenue Services says boat owners must pay a use tax of up to 5 percent if they bought their boat in another state that doesn't require sales taxes for boats, brought it into Maine within the first year of ownership and had it available to use for at least 30 days, The Associated Press reports.

Critics claim the tax and its strict enforcement are having a chilling effect on boaters and discouraging tourism.

A retired Maine businessman thought he was helping the local economy in 2005 when he spent more than $100,000 in Portland, Maine on repairs to his 72-foot yacht, newly purchased in Florida.

But, more than a year later, Tom Toye III received a $60,000 bill from Maine Revenue Services for "use taxes" on the boat.

Toye appealed and later sued the state tax assessor, claiming the vessel shouldn't be taxed in Maine. Last week, he lost his case in Maine Superior Court. With interest and penalties accruing, he says the bill has grown to about $120,000.

"I'm just infuriated about the whole thing," Toye told The Associated Press.

Click here for the full article.

Related

Patrick Acquires SeaDek Parent

The Indiana-based company continues its strategy of growth through acquisitions.

BoatUS, USPS Resume Safety Checks

The groups are offering the service during safety events, or boaters can conduct the inspection using an online guide.

Stepping Up the Pace of Relief

A positive jobs report, 3 million vaccinations per day and consumer confidence point toward economic recovery.

Freedom Boat Club Buys N.Y. Franchise

The latest acquisition is Brunswick’s sixth corporate-owned Freedom operation in the United States.

In-Person NMEA Conference Announced

The electronics conference, in conjunction with the Radio Technical Commission for Maritime Services, is scheduled for Sept. 20-24 in Orlando, Fla.

Vesper Appoints U.S.-based Manager

Damien Frye will drive sales of the New Zealand-based company’s Cortex product line.

Groupe Beneteau Sells CNB

As part of the conglomerate’s realignment, the Groupe has inked an agreement with Italian yard Solaris to purchase the bluewater sailing brand.