As though negative comments about business aviation from President Obama and Members of Congress weren’t enough, the president’s home state of Illinois has taken up the cry and has proposed a 5% luxury tax on aircraft valued at more than $500,000.
NBAA and other aviation groups quickly opposed the legislative proposal in Illinois, stating that it “fails to recognize the essential role of business airplanes to companies by treating them as a luxury for tax purposes.”
The proposed legislation would impose a 5% state luxury tax on aircraft assessed at more than $500,000. That tax would be in addition to the current state and local use taxes.
NBAA Regional Representative Bob Quinn reports that he has attended several meetings, and twice met with the bill’s sponsor, to “convey the association’s concerns about this proposal, which would drive aircraft operations and jobs out of Illinois.”
NBAA encourages members based in Illinois to contact their state representatives, asking them to oppose the luxury tax legislation, which currently is under review by the legislature’s Sales and Other Taxes Subcommittee.
For information: www.nbaa.org/member/admin/taxes/state/il/illinoisluxurytax.php