The New Mexico state legislature has passed two measures designed to attract aviation business and make the state more competitive. The bills have passed both chambers of the legislature and are now awaiting the governor’s signature, according to officials with the National Business Aviation Association.
Under House Bill 14, aircraft parts and maintenance labor would be exempt from the gross receipts tax, which can range from 5.125% to 8.6875%, depending on the location of the business. This exemption is important as many states surrounding New Mexico already have parts and labor exemptions, which causes aircraft owners to take their business outside of the state.
“This exemption will bring new aircraft maintenance business to New Mexico and encourage existing facilities to expand their operations,” explained Scott O’Brien NBAA’s senior manager of finance and tax policy.
The legislature also passed House Bill 24, which would provide an exemption from the gross receipts tax for aircraft more than 10,000 pounds maximum takeoff weight sold to commercial or military carriers.