Call to Action: Oppose Proposal to Repeal Massachusetts Aircraft Tax Exemption

May 13, 2013

Legislators in Massachusetts are considering House Bill 2490, introduced by Rep. Cory Atkins (D-Concord) to repeal the sales tax exemption on aircraft. Similar legislation has been proposed in prior years, but NBAA and a coalition of general aviation groups have been able to preserve the exemption. It is critical that Members again take action this year.

Under the proposal, sales of aircraft would be subject to the 6.25% sales tax. Aircraft sold to a certificated or licensed air carrier (i.e. Part 135 operator) and used in interstate or foreign commerce would retain their exempt status. However, any aircraft sold within Massachusetts to a Part 91 operator would be subject to the 6.25% sales tax.

On this Tuesday, May 14, the Joint Committee on Revenue will hold a public hearing to discuss the proposal. NBAA Members are encouraged to attend this hearing and register their opposition to House Bill 2490. In prior years, testimony by NBAA Members at public hearings on similar legislation has been critical to maintaining this important exemption.

Hearing Details

Details on the public hearing are as follows:

Joint Committee on Revenue: May 14 at 10:30 am
Hearing Room A-2
Massachusetts State Capitol (24 Beacon St, Boston, MA 02108)

Review information on participating in the Massachusetts legislative process.

NBAA Action

Since this of legislation was introduced, NBAA has been working directly with legislators and Massachusetts based Members to oppose repeal of the exemption. To date, NBAA has performed the following:

• Coordinated with AOPA, the Massachusetts Airport Management Association (MAMA) and the Massachusetts Business Aviation Association (MBAA) to explain the value that business aviation provides to the state.
• Provided data to legislators on the economic benefit that business aviation provides to Massachusetts.
• Worked with Members to coordinate testimony at a Joint Committee on Revenue hearing.

Business Aviation in Massachusetts

Business and general aviation provide the following economic benefits to Massachusetts:

• General aviation in Massachusetts provides nearly 10,000 jobs in the state.
• A 2011 Massachusetts Statewide Airport Economic Activity Impact Study found that state’s general aviation airports support over $443 million annually.
• Massachusetts has 39 public-use airports, serving 8,399 private pilots and 4,300 general aviation aircraft.
• Massachusetts is home to 22 charter flight companies, 58 repair stations, and 12 flight schools and 41 FBOs

For additional information, contact NBAA’s Dean Saucier at (202) 737-4472 or dsaucier@nbaa.org.