After more than a decade of advocacy, an aircraft sales-and-use tax exemption has passed the New York legislature as part of a new state budget. The legislation now goes to Gov. Andrew Cuomo for his signature.
“We’ve fought hard for this aviation sales-and-use tax exemption because it will help boost aviation, create jobs and spur the economy,” said Mark Baker, president of the Aircraft Owners and Pilots Association (AOPA). “On behalf of the more than 12,300 AOPA members in New York, I want to thank state lawmakers for recognizing the value of aviation in New York and taking decisive action to help it grow. We look forward to seeing this measure signed into law.”
In 2004, the aviation community won a sales tax exemption for aviation maintenance and since then AOPA and others have been seeking to expand the exemption to include aircraft sales.
The legislation that includes the exemption passed the full Senate March 30, sending it to the governor for his signature.
Historically, New York’s tax structure has led many individuals and companies to purchase and house their aircraft in neighboring states, AOPA officials noted. Since 2002 the state has lost nearly 700 based aircraft.
Similar legislation passed in other states has created jobs, increased aviation activity and generated revenue, and AOPA officials estimate hundreds of new jobs will be created in New York directly or indirectly as a result of the tax exemption.