Hot Air Balloon Pilots Beware!

Compliant States

The following states are currently in compliance with Federal Law. A statement of compliance is provided by them for future tax challenges. We need to know what is going on in each state. Tell us about your state. Just because they are not going after you now does not mean they will not in the future.

While Ron and Matt won their individual cases in Maryland, future Maryland balloon pilots could be challenged because a precedent setting tax ruling was not made. Maryland Comptroller was slick in withdrawing their case before our day in tax court thus avoiding their obligation to show precedence for this case in Maryland. FINALLY June 2011---read below-- Maryland is now a compliant state!!

Read how a state can very quickly become a non-compliant state and authorize a tax on your gross receipts: New York Times story

• Alaska ---Sales Tax Imposition - 1996
• Arizona ---TRANSACTION PRIVILEGE TAX RULING - 1992
• Idaho --- Sales Tax Ruling Clarification- 2008
• Jim Knight email recently ran into the sales tax issue with Idaho. "My solution was to present the Maryland court decision and letter from the DOT to my accountant who is buddy-buddy with all the local tax commission officials. She made one phone call, faxed the document, schmoozed the guy and all my problems went away. Lot cheaper than a court battle."
• Iowa ---Sales Tax Imposition Ruling - 1985
• Kansas ---Private Letter Ruling 6/30/2010
• Maryland
• June 2011 FINALLY- HB 499- was signed into law. Admissions and Amusement Tax - Exemption- Hot Air Balloons: This Act provides that a county or municipal corporation may not impose an admissions and amusement tax on the gross receipts of admission to or use of a nontethered hot air balloon.
• 4/4/2011 UPDATE: State Senate signed bill exempting hot air balloons from admissions and amusement tax. Bill was signed by the Governor and became law. Thanks to State Delegate Kathy Szeliga for sumbitting and co signing this bill. Thank you Kathy!! Maryland needs more elected officials like Kathy!!
• 3/17/2011 UPDATE: Bill proposed State House Ways and Means Committee would protect balloon operators from amusement tax.
• October 2010 --Ron Broderick email - State withdrew assessment-and paid Ron all back payments(past three years) PLUS $1800 in penalty fees because of their MISTAKE.
• Matt Lidinsky email - State withdrew assessment
• New Mexico --- Gross Receipts Tax Ruling- 1998
• Tennessee - David Eastland email provided the following: State position memo

Details will be provided soon state by state. We will be listing pilots who are partner members and will be sharing their past experiences with us for your benefit. Even in these compliant states an unknowing state tax auditor could come after you not knowing of this letter of compliance.

Much more to come.