AOPA Pilot Magazine - April 2012 - 16

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FROM THE STATEHOUSES
STATE AND LOCAL ACTION
1 Maryland

Luxury tax targets ‘airplanes’

Aircraft sold for more than $35,000 are among targets of a new Maryland luxury tax proposal. AOPA is reaching out to legislators about Maryland House Bill 1345, which would add a 1-percent luxury surtax to the state sales and use tax on “motor vehicles, boats and airplanes” on sales amounts in excess of $35,000. The surtax on motor vehicles, boats, and airplanes sold for a taxable price of more than $90,000 would be $550 plus 2 percent of the amount in excess of $90,000. The bill would impose a luxury surtax on most retail sales of items valued more than $5,000. It was referred to the rules and executive nominations committee. Sponsors are Ways and Means Committee Chairman Sheila Hixson and Delegate Heather R. Mizeur. The bill’s introduction comes at a time when numerous other states have been acting to expand exemptions of aircraft from sales and use taxes as a way of bolstering the competitiveness of their aviation businesses, and of spurring employment. 2 Florida 3 South Dakota

Florida House passes aviation tax exemption
The Florida House has voted to expand a sales tax exemption to most light general aviation aircraft maintenance costs and the equipment used in the repairs. House Bill 7087, an economic development package backed by AOPA and the Florida Aviation Trades Association (FATA), passed the House by a margin of 92 to 22, with provisions making aircraft with a maximum certified takeoff weight of more than 2,000 pounds eligible for the tax exemption now afforded only to aircraft weighing more than 15,000 pounds (and rotary-wing aircraft weighing more than 10,000 pounds maximum certified takeoff weight). The legislation was introduced by Rep. Stephen L. Precourt (R-District 41), chairman of the Finance and Tax Committee, and moved directly to the full House, bypassing the committee referral process. The bill incorporated provisions of two bills supported by AOPA and FATA into the economic development measure approved by the House. Final passage would place Florida among a growing number of states with tax exemptions that are seen as boosting aircraft-repair businesses and employment in those states’aviation industries. This legislation is another step toward creating jobs in Florida, said Rep. Steve Crisafulli (R-Merritt Island), a co-sponsor. “For too long Florida has lost aircraft maintenance and repair business to other states because it hasn’t remained competitive in its tax policy. I am confident that this legislation will encourage aircraft owners to visit Florida’s world-class aviation maintenance and repair facilities. We are very encouraged with the House passage of this significant legislation,” said Mark Kimberling, AOPA director of state government affairs. “We are now one step closer to finally extending the state sales tax exemption on maintenance to GA aircraft in the state. Lighter single and multiengine GA aircraft really are the heart of the aviation industry in Florida. AOPA and FATA have already turned our attention to the Senate as we continue to work to get this important measure signed into law,” he said.
AOPA PILOT •

House passes homebuilder tax relief

The South Dakota House of Representatives has approved a bill—by a vote of 45 to 23—championed by AOPA and pilots across the state that will provide relief from double taxation of aircraft homebuilders. Working with the South Dakota Pilots Association, AOPA has called on lawmakers to enact tax policy that treats homebuilt aircraft the same as factorybuilt models. Under current law, both homebuilt and factory aircraft owners pay a

4-percent registration tax

in lieu of a sales and use tax. Components such as engines, avionics, and propellers are exempt from additional taxation when installed in a factory-built aircraft, but state revenue officials recently began sending bills to homebuilders seeking back taxes on installed components. Pilots responded to a recent AOPA Action Alert urging them to contact state lawmakers and voice support for House Bill 1209, which now heads to the state Senate.

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16 • APRIL 2012

AOPA Pilot Magazine - April 2012

Table of Contents for the Digital Edition of AOPA Pilot Magazine - April 2012