Blue Yonder, LLC v. State Tax Assessor
Annotate this CaseBlue Yonder is a company owned by Stephen Kahn and his wife. Blue Yonder purchased an aircraft from Cirrus Design Corporation in 2002 in Minnesota. Kahn flew the aircraft from Minnesota to Massachusetts. The aircraft was registered in Massachusetts. The aircraft has never been registered in Maine. No sales or use tax has been paid on the aircraft in any jurisdiction. Kahn rented the aircraft from Blue Yonder for his personal and business use, as well as for humanitarian purposes (delivering ill or injured patients to Massachusetts through a charity program). Kahn was the only operator of the aircraft. Kahn owned properties in Maine which he visited using the aircraft. The craft was present in the state for at least twenty-one full days in a twelve-month period. Maine Revenue Service assessed a use tax on the aircraft. Blue Yonder appealed the assessment to the Superior Court. The Superior Court entered judgment for the Assessor. Blue Yonder appealed. The Supreme Court concluded that because the aircraft was used only briefly in Maine, it was exempt from the use tax when it was purchased out-of-state, and was never registered in Maine. The Court vacated the lower court’s decision.
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