AUGUSTA, Maine An eight-month battle over the loss of a tax exemption that could cost Maine motorcoach operators thousands of dollars in additional taxes when they buy new coaches shows no signs of an early settlement. (See April 15 Bus & Motorcoach News.)

A coalition of about a dozen operators, tourism officials and others are waiting for state lawmakers and other officials to get back to their desks, while another operator waits for the states highest court to act on the issue.

"Things really slow down here during the summer and the politicians dont do much of anything," says coalition member Ray Penfold, general manager of VIP Tour & Charter Bus Co. in Portland. "We still are pursuing this, though."

Maine coach operators have been trying to convince the state revenue office to back down on its decision and state lawmakers to develop legislation that would allow motorcoach operators to keep the exemption.

At the same time, Joe Cyr of Cyr Bus Lines in Old Town, Maine, whose state audit of his buses last year triggered the dispute, is waiting for the state Supreme Court to act on the issue.

He sued the state revenue agency in December after a number of his buses were put back on the tax roles because they were not being used for out-of-state travel although they were transporting cruise ship passengers who had stopovers in Portland. The loss of the exemption cost him about $200,000 in new taxes.

While the state Superior Court ruled against Cyr, the case has been appealed to the state Supreme Court, which has yet to schedule any hearings or take action.

"We thought we would have had a hearing by now but the courts usually dont move too quickly here," said Cyr.

At issue is an exemption to the use or sales tax the state charges on new vehicles. Under an exemption adopted nearly 30 years ago, motorcoaches used for interstate travel do not have to pay the tax. In the past, that included buses used to take cruise ship passengers on tours and other trips when the ships visited the state.

To qualify for the exemption, a coach has to be put into interstate service within 30 days of its acquisition and must be used for interstate travel at least 80 percent during the next two years.

"The exemption still exists for motorcoaches used for interstate travel," said Peter Beaulieu of the state revenue agency. "We did not feel that coaches that were used to simply pick up some passengers from a cruise, take them on a tour of the area and then back to the ship was interstate travel. It is intrastate and does not qualify for the use tax exemption."

The coalition believes the state ruling conflicts with federal laws covering interstate commerce. The motorcoach industry has long maintained that land tours for cruise ship passengers are an extension of interstate commerce.

During the audit of Cyrs company and 26 buses it had purchased over a six-year period, it was determined that 10 of the coaches did not qualify for the exemption because they did not meet the 80 percent requirement. That decision cost him $84,000 in back taxes, interest and penalties.

In addition, most of the 16 others failed as well because they were used mostly for the cruise ship business. That ruling resulted in the company owing $200,000 more in taxes and touched off the feud, the lawsuit and the creation of the coalition.

Penfold said the coalition the Maine Family Bus Group said if the tax exemption is lifted, it will have a devastating impact on the motorcoach industry and tourism in the state. He said operators no longer would be able to put their high-end coaches on the cruise ship tours and would make the tours most costly for the passengers.

The group, which includes the United Motorcoach Association, also raised concerns that if Maine gets away with it, others states with similar exemptions could follow suit.