State Tax
Call to Action: Pennsylvania Aircraft Tax Exemption Requires Member Support
April 16, 2012
As NBAA first reported in January, the Pennsylvania legislature is considering legislation (HB 1100) that would exempt fixed-wing aircraft from the Pennsylvania sales and use tax. In addition, aircraft repair parts and installation would also be exempt from sales and use tax. The bill is entering a critical phase where direct action by NBAA Members is necessary to move this important legislation forward.
The bill is now in the second consideration phase where amendments can be proposed and much of the debate takes place. Legislators need to hear directly from constituents supporting this bill to move it onto third consideration, where it is very likely to pass. While NBAA is continuing to advocate for passage of the bill, when legislators hear directly from their own constituents in Pennsylvania the message is more powerful.
Representative Peter Daley of the 49th District is the sponsor of HB 1100. He has already been able to recruit over 60 co-sponsors, meaning that the bill enjoys strong support in the Pennsylvania House. Supporters of the bill believe it should be quickly passed to help stimulate the state's economy, create jobs, and encourage aviation businesses to locate in Pennsylvania.
To keep this legislation moving, Members should contact Pennsylvania legislators by May 15.
Learn More about Rep. Daley's Efforts on HB 1100
Member Action
Members are encouraged to contact their elected representatives in Pennsylvania to express their support for HB 1100. Legislators have advised NBAA that sending letters via mail is the most effective way for Members to support the bill.
The letters should explain that HB 1100 will actually generate additional tax revenue through an increase in fuel flowage fees, hangar leases, and business taxes which are the result of increased aviation business. Job creation in the aviation sector will also lead to increased employment tax collections. Finally, aviation employees will have discretionary income to spend which will support other sectors of the economy.
Since implementing similar exemptions, states such as Massachusetts, Connecticut and New York have seen an increase in aviation activity and additional tax revenue. Massachusetts recently completed an economic impact study revealing that over 4,000 jobs and nearly $445 million in economic impact are tied to the state’s 30 general aviation airports.
Contact your elected representatives
NBAA Action
Since this legislation was introduced, NBAA has been working directly with legislators and Pennsylvania based Members to build support for HB 1100. To date, NBAA has performed the following:
- Coordinated with Representative Daley to determine how NBAA Members can best support the bill.
- Provided data to legislators on the economic benefit that business aviation provides to Pennsylvania.
- Communicated directly with Pennsylvania Members to encourage that they contact their elected officials to support HB 1100.
Business Aviation in Pennsylvania
Business and general aviation provide the following economic benefits to Pennsylvania:
- General aviation airports contribute over $1.31 billion to the state’s economy.
- Aviation in Pennsylvania is responsible for 288,700 jobs, or five percent of all jobs in the state. General aviation airports support over 4,500 of those jobs.
- Pennsylvania has 142 public use airports, 106 of which are general aviation airports, serving 17,049 pilots and 8,162 general aviation aircraft.
