AOPA Turbine Pilot Magazine - September 2013 - 30

BRIEFING

AOPA ACTION

The perilous states of GA
A snapshot of what was really at stake as general aviation endured the worst recession in a generation
BY MARK KIMBERLING

t the onset of the financial crisis, the frenzy in
Washington, D.C., led all political discussion, as new
$36,245 Potential
Illinois luxury tax
economic buzzwords such as bailouts and stimulus
amount on a
became fixtures in the national vernacular. Cue the auto execCirrus SR22T purchase.
utives’ infamous jet visit to Congress,
and GA suddenly was ensnared as a
DEFEATED LUXURY
target of choice to symbolize fat cats
TAX BILLS
With the distorted view of GA
and corporate greed in ensuing tax
as toys for the rich, these bills
debates. The financial implications of
targeted GA aircraft along with
this became clear at the federal level, as
fur coats, cosmetic surgery, and
submarines.
user fees for jets and other large-scale
aviation issues reemerged. Meanwhile,
ILLINOIS (2008) Extra 5 percent
on top of the 6.25-percent sales
far from the spotlight of D.C., beneath
tax.
the radar of the 24-hour cable news
OREGON (2009) Blank check.
machine, some of the most pivotal
MARYLAND (2012-13) $550 and
decisions to shape the financial future
3 percent on top of state’s
of GA were actually being made in the
6-percent sales tax.
nation’s state capitals. With record
state budget shortfalls and required
balanced budgets, state governors and legislators needed to
find revenue fast, and GA—with the newly skewed perception
of the industry—was targeted early and often with a flurry of
onerous new state tax hikes.
Armed with a passionate member base, valuable local allies,
and the real picture of GA, AOPA’s State Government Affairs
Impact
team crisscrossed the country—from Olympia to Tallahassee—
$325,000 in
initial fees, and
to fight back against the potentially irreparable harm on the
$65,000 in
already ailing industry. Gradually, through countless hearings,
annual fees for a
typical Part 141
late-night strategy calls, and speed-walking conversations with
flight school.
rushing legislators in the statehouse halls, these ill-conceived
measures were defeated and dismantled one by one. The eventual result? Not one penny in new tax increases.
DEFEATED NEW FLIGHT SCHOOL STATE
REGULATIONS AND FEES

Mark Kimberling is director of AOPA state government affairs.

TURNING THE TIDE
Recent proactive AOPA-backed GA state tax cuts by the numbers
MAINTENANCE PARTS & LABOR EXEMPTIONS:
Newly passed COLORADO (2013), OHIO (2009), IDAHO (2012),
PENNSYLVANIA (2013), and FLORIDA (2012).
Defended from repeal proposals NEW YORK (2009)
and IOWA (2009).

CALIFORNIA (2010-11) AND TENNESSEE (2013)
Suddenly started targeting flight schools, through yet
another revenue angle—with misapplied state regulations
and fees—which ultimately required emergency
legislation to stop the unrelenting enforcement.

$8,015.10

State tax savings for a gear-up landing
repair for an OHIO-based 1985 Cessna 421C.

The state estimated annual tax savings for GA maintenance in

$16 million-$20 millionFLORIDA as a result of the newly enacted exemption.
30 | AOPA PILOT September 2013

AOPA Turbine Pilot Magazine - September 2013

Table of Contents for the Digital Edition of AOPA Turbine Pilot Magazine - September 2013