Massachusetts House resurrects bill to repeal aircraft tax exemption
February 8, 2011, 05:30 pm
The Massachusetts House chamber has resurrected a proposed bill to repeal the aircraft tax exemption, making planes susceptible to the state's 6.25 percent sales tax rate, according to the Aircraft Owners and Pilots Association.
Although the bill has been defeated numerous times and was not included by the state's governor in the annual budget, Massachusetts Representative Cory Atkins has still reintroduced it in the House in an effort to provide a perspective source of new funds to help the state manage budget cuts.
However, the AOPA has contacted the Representative, voicing their approval of Governor Deval Patrick's continued support of the exemption and encouraging Atkins to realize the potential benefits to the state that result from not having aircraft taxes. "Massachusetts' aircraft tax exemption has made it competitive with neighboring states and has attracted new jobs and investment into the commonwealth," said Mark Kimberling, AOPA's director of governmental affairs.
There are statistics to back up these claims, according to the AOPA. Based aircraft in Massachusetts have increased 40 percent since the exemption was enacted and has had a positive effect on the state's aviation sector.
Imposing aircraft taxes could also have negative effects on the pilots themselves, potentially causing them to redirect funds from important areas such as additional flight training or life insurance for pilots.
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