A retired Maine businessman thought he was helping the local economy in 2005 when he spent more than $100,000 in Portland on repairs to his 72-foot luxury yacht, newly purchased in Florida. Now he's feeling cheated.

More than a year later, Tom Toye III received a $60,000 bill from Maine Revenue Services for so-called "use taxes" on the boat.

Toye appealed and later sued the state tax assessor, claiming the vessel shouldn't be taxed in Maine. Last week, he lost his case in Maine Superior Court. With interest and penalties accruing, he says the bill has grown to about $120,000.

"I'm just infuriated about the whole thing," said Toye, who is considering an appeal to the Maine Supreme Judicial Court. Maine Revenue Services says boat owners must pay a use tax of up to 5 percent if they bought their boat in another state that doesn't require sales taxes for boats, brought it into Maine within the first year of ownership, and had it available to use for at least 30 days.

Aircraft owners complain that Maine sends out similar tax bills _ sometimes exceeding $100,000 _ on their planes. The judge in Toye's case also ruled in favor of the state on two cases involving aircraft owners.

Maine Revenue Services says it's simply doing its job: collecting taxes.

But critics claim the tax and the strict enforcement are having a chilling effect on boaters and discouraging tourism at a time when the state's economy needs help.

Some out-of-state boaters are steering clear of Maine's rocky coast and picturesque harbors, which in turn hurts local grocery stores, restaurants, repair yards and other businesses that benefit from boaters, said Micah Peabody, general manager of Dysart's Great Harbor Marina in Southwest Harbor.

"Word is starting to spread that Maine is unfriendly to yachtsmen," Peabody said.

There've been reports of tax agents in row boats photographing visiting boats. Peabody says 10 or 12 boats have stayed away from his marina alone in the past couple years for fear of getting huge tax bills.

About three or four years ago, the state began cracking down on boat owners. Tax officials examined marina records, talked to harbormasters and dispatched agents to harbors to take notes and photographs of out-of-state boats, said Errol Dearborn, director of compliance for Maine Revenue Services.

While the stepped-up enforcement coincides with a sour economy and weak tax collections, officials say it is not tied to the recession.

"It's an equity thing," Dearborn insisted. "We enforce the law, and the law is to protect Maine businesses that do sell watercraft."