Eagle Rental, Inc. v. State Tax Assessor
65 A.3d 1278
Me.2013Background
- Eagle Rental is a Maine corporation whose principal place of business is Waterville; Daniel Bickford is president and his wife is vice president and treasurer.
- Eagle Rental rents and sells equipment and is a licensed used car dealer, accepting trade-ins of used vehicles.
- Eagle Rental purchased and traded Escalades in two series from 2003–2007 and 2005–2009, maintaining some Escalades in inventory.
- Bickford and family used the Escalades for personal and business purposes, including travel to stores, movies, meals, and job sites, with Eagle Rental paying fuel, maintenance, and insurance.
- The Tax Assessor assessed use tax on four Escalades; Eagle Rental challenged, arguing dealer plates permit personal use without triggering use tax under Maine law; the case was heard in the Superior Court and then in the Business and Consumer Docket, which affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the dealer plate statute allows personal use of dealer-inventory vehicles without use tax. | Eagle Rental argues dealer plates permit personal use without triggering use tax. | State Tax Assessor contends the dealer plate statute does not exempt use tax. | No; use tax applies if vehicles are withdrawn from inventory. |
| Whether the Escalades were withdrawn from Eagle Rental's inventory, triggering use tax. | Eagle Rental contends the vehicles remained in inventory for dealer purposes. | Taxing authorities determined withdrawal occurred based on totality of circumstances. | The Escalades were withdrawn; use tax affirmed. |
Key Cases Cited
- Gannett Co. v. State Tax Assessor, 959 A.2d 741 (Me. 2008) (burden of proof; tax exemptions require showing entitlement by preponderance of evidence)
- Town of Poland v. Poland Spring Health Inst., Inc., 649 A.2d 1098 (Me. 1994) (tax exemption analysis; authoritative on burden and standard of review)
- Frank v. Assessors of Skowhegan, 329 A.2d 167 (Me. 1974) (exemption burden and standard of proof in taxation matters)
- Irving Pulp & Paper, Ltd. v. State Tax Assessor, 2005 ME 96, 879 A.2d 15 (Me. 2005) (statutory interpretation; harmonization of dealer plate and taxation statutes)
- Eagle Rental, Inc. v. City of Waterville, 632 A.2d 130 (Me. 1993) (principle that taxation is the rule; exemption is the exception)
- Portland Gas Light Co. v. Johnson, 244 A.2d 817 (Me. 1968) (fact-intensive approach to determining tax applicability)