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Friday, August 27, 2010

Howard County Hot Air Balloon Operator Wins Tax Battle With State


Comptroller concedes mistake, will return $9,000 in taxes paid

Friendship Hot Air Balloon Co. owner Ron Broderick’s 18-month legal battle with the state over back taxes has finally come to a close.

And while Broderick will be refunded thousands of dollars in admissions and amusement taxes the state now admits it wrongfully collected on his West Friendship business, he remains unhappy with what he called an unfair process.

“Really, I mean it’s just been a battle,” he said. “There was so much involved in what happened. ... It’s like talking to people until you’re blue in the face.”

Broderick’s business was audited by the comptroller’s office in February 2009. At the time, the auditor determined Broderick should be paying a 7.5 percent admissions and amusement on his hot air balloon business.

Broderick disagreed and appealed his assessment, saying hot air balloons are not amusement rides but aircraft regulated by the Federal Aviation Administration, and thus exempt from state amusement taxes.

“Balloons were the first form of aviation, something that we forget about in this country,” said Broderick’s attorney Allen Dyer, who also sits on the Howard County Board of Education. “If you go flying under a hot air balloon, you come under ... federal law.”

After he lost his appeal through the informal hearing process, Broderick appealed his case to the Maryland Tax Court. The trial date was scheduled for Sept. 1, but when the pretrial memoranda were due at the end of July, the comptroller’s office withdrew the admissions and amusement tax assessment.

“Fortunately, I didn’t give up because I knew I was right,” Broderick said.

GO HERE to read more.

EDITORS NOTES: This is why Maryland is considered a tax dump. For taxing even a hot air ballon.

2 comments:

Anonymous said...

Too bad we can't tax the Hot Air out of Annapolis...

Anonymous said...

A citizen defending himself against a criminal government. And the other citizens did not come to his defense because we are scared of the government.