AOPA Turbine Pilot Magazine - April 2011 - 16

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AOPAACTION

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STATE AND LOCAL ACTION
1 Massachusetts

Aircraft tax exemption repeal returns, now in House

After previous attempts to remove the commonwealth’s aircraft sales tax exemption were defeated in the legislature, Massachusetts Gov. Deval Patrick opted not to include the proposal in this year’s budget. But the proposal is still alive in the state legislature, where a representative has introduced a bill to repeal the exemption. Rep. Cory Atkins proposed a bill that would make aircraft maintenance labor and parts subject to the state’s 6.25 percent sales tax. “Massachusetts’ aircraft tax exemption has made it competitive with neighboring states and has attracted new jobs, investment, and revenue into the commonwealth,” said AOPA Director of State Government Affairs Mark Kimberling. “We’re pleased that Governor Patrick chose not to include the repeal in his budget this year, but as long as states face significant budget deficits, we’ll continue to see short-term proposed revenue grabs of this nature—

The percentage of revenue from the Washington aircraft tax increase to be reinvested in the aviation system.

0%

Devil in the details:
Sec.306.The ((secretary shall)) department must regularly pay to the state treasurer the excise taxes collected under this chapter((, which shall be credited by the state treasurer as follows: Ninety percent to the general fund and ten percent to the aeronautics account in the transportation fund for administrative expenses)) for deposit into the general fund.
actual bill language

sometimes at the inadvertent expense of critical sectors of the economy.”

Choices....Choices...
Aircraft maintenance sales tax by state
Existing exemption on parts and labor No state sales tax Bill pending to enact exemption on parts and labor

*

with a The total economic impact of general aviation in Massachusetts.

$4 Billion “B”

2 Washington

AOPA, local pilots rally to oppose proposed aircraft tax…again

AOPA has called on select members in certain districts in the state of Washington to help defeat a proposed excise tax on aircraft that is similar to a taxation plan dropped by lawmakers last year after a vigorous effort by the aviation community. H.B.1847, which would impose an annual half-percent levy “for the privilege of using any aircraft in the state,” was introduced in early February, followed by an identical companion bill a few weeks later in the Senate. The bill would impose the levy of 5 percent of an aircraft’s taxable value as part of a process of ending “tax preferences” that the sponsor describes as “obsolete and inefficient.” “This bill description is certainly a mischaracterization as it applies to the new aircraft tax provision, because there are no real existing tax exemptions or ‘preferences’ for GA aircraft based in the state,” said AOPA Director of State Government Affairs Mark Kimberling, “and the current cumulative tax liability to own, maintain, and operate an aircraft in Washington is already among the highest in the nation. However well-intentioned the effort is to find increased revenue to support the state health care plan, there is a point of diminishing return, and this excessive tax would inflict significant damage on an already fragile industry with a likely resultant net long-term loss in overall revenue collection.”

Amount in new, annual personal property taxes a 1989 Cessna Caravan owner would have to pay in Connecticut under the governor’s new proposal (in addition to the $1,500 annual registration fee). Total annual cost to base the same airplane in New York: ,

$11,130

$0 Massachusetts: $175, Rhode Island: $160.

AOPA PILOT •

16 • APRIL 2011
AOPA Turbine Pilot Magazine - April 2011

Table of Contents for the Digital Edition of AOPA Turbine Pilot Magazine - April 2011
