The National Business Aviation Association is encouraging pilots and aircraft owners in New York to support Assembly Bill 3677 and Senate Bill 273, which would exempt general aviation aircraft purchased in the state from sales and use tax.
Last year, a similar bill passed the Senate, but failed in the Assembly, NBAA officials noted.
The enactment of this legislation could increase jobs in New York, generate additional indirect tax revenue, increase the number of registered aircraft, and increase fuel sales, NBAA officials noted.
“The advocacy efforts of aircraft operators and companies doing business in New York will be key to moving these bills through the legislature,” NBAA officials said. “State legislators need to hear from local constituents about the positive economic benefits of this legislation. While NBAA is continuing to advocate for passage of the bills, when legislators hear directly from their own constituents in New York the message is more powerful.”
Since the sales tax exemption for the maintenance and repair of aircraft was enacted in 2004, New York has attracted significant investment in aviation services. A recent study by the New York State Department of Taxation and Finance demonstrates that this tax exemption has been a tremendous success, resulting in an expansion of aviation maintenance and repair businesses, the creation of jobs in New York and an increase in state tax revenue.
States such as Massachusetts and Connecticut have also seen an increase in aviation activity and additional tax revenue after implementing similar exemptions. In Massachusetts, a similar aircraft exemption enacted in 2001 has helped increase number of based aircraft in the state by 40 percent. These additional aircraft have produced a positive economic impact and created additional jobs, NBAA officials noted.
For more information: NBAA.org