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Maine disputes border with N.H.

KITTERY, Maine, May 12 -- Maine petitioned the U.S. Supreme Court Friday to settle its long-simmering border dispute with New Hampshire. Both states claim the nation's oldest Navy shipyard lies within their territory.

The two states agree the Portsmouth Naval Shipyard lies on Seavey Island in the Piscataqua River separating Maine and New Hampshire. The disagreement revolves around where the border lies -- in the middle of the river or along the north bank.

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In a 500-page response to New Hampshire's claim, Maine Attorney General Andrew Ketterer argues the border between the states lies in the middle of the river, putting the shipyard in Kittery, Maine, The Portland Press Herald reported Friday.

New Hampshire officials claim the border lies along the Maine bank of the river, placing the shipyard in Portsmouth, N.H.

Along with state pride, the controversy involves some $5 million in annual income taxes. Unlike New Hampshire, Maine has a personal income tax that some 1,300 out-of-state workers, including New Hampshire residents, must pay. Maine also has a spousal tax based on a spouse's income earned outside Maine. New Hampshire workers resent the tax since it increases their tax burden.

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Attempts at exempting New Hampshire residents from paying Maine taxes have failed. New Hampshire's two Republican senators unsuccessfully lobbied Congress in 1997 to relieve the shipyard workers from paying Maine income taxes. And early this week the Maine Supreme Court refused an appeal of a class-action suit brought by New Hampshire workers against Maine's tax policy.

Maine traces its claim to colonial times when in 1740 George II decreed the boundary between Massachusetts and New Hampshire lay in the middle of the river. At that time Maine was part of Massachusetts. Ketterer also cited the U.S. Supreme Court's 1976 ruling that forced New Hampshire to cede some prime fishing grounds to Maine.

Further bolstering Maine's claim, the attorney general said deeds to properties at Seavey Island are recorded in Alfred, Maine, and permits for wastewater discharges and air emissions licenses are filed in Maine. He said the only road leading to the shipyard runs from Kittery.

But New Hampshire has insisted an 18th Century map places Seavey Island in the Granite State; hence the Portsmouth Naval Station is in Portsmouth, N.H., not Kittery, Maine.

To prevent motorists from getting the idea that New Hampshire has agreed to a mid-river boundary, four years ago New Hampshire removed the "Welcome to Maine" signs that hung over its three bridges leading north.

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