Gambling In Pa. Will Reduce Your Taxes. Buying an Aircraft in Pa. and Supporting General Aviation Will Cost You $$ Another Case of "We are from the Government and we are here to help" Well Maybe..................
On July 2, 2012 NBAA issued a call to action that, if successful, would exempt fixed wing aircraft in Pennsylvania from sales and use tax. The proposed legislation would also exempt aircraft repair and parts and installation from Pa. Sales and Use tax. HB 1100 passed the Pa. Assembly and was waiting action from the Senate on a companion bill SB 1522. Unfortunately the Pennsylvania Legislators went home without the Senate taking action on the bill and therefore the legislation is dead according to Rep. Matt Baker representing Pennsylvania's 68th Legislative District. Here is something personal but kind of interesting. I have registered three different aircraft over the past several years. The trigger to Pa. pay sales tax has always been the FAA registration. The first two times I received a nasty gram from the Pa. Dept of Revenue before I ever received my registration card from the FAA. What was different this time was that I received my FAA registration and had it in hand until the Legislature ended their current session and went home. The bills were dead at that point and the nasty gram from the Dept. of Revenue quickly followed. Coincidence? Maybe, maybe not.
You voices are heard. The House passed HB 1100 and supported the exemption of Sales and Use Tax on fixed wing aircraft. Failure to act by the Senate caused the action to die. It is worth keeping your ear to the ground to see if the next session of the Pa legislature can or will revive this legislation. If so, please join the fight. Our states economy can benefit from lifting the sales and use tax on fixed wing aircraft and your letter of support can help. The Wellsboro Johnston Airport can benefit.
Just look at the NBAA facts below.
Call to Action: Pennsylvania Aircraft Tax Exemption Requires Member Support
July 2, 2012
In May, the Pennsylvania Assembly passed legislation (HB 1100) to exempt fixed-wing aircraft from the Pennsylvania sales and use tax. In addition, aircraft repair parts and installation are also exempt from sales and use tax. The legislation now awaits action in the State Senate, where a companion bill (SB 1552), sponsored by Sen. David Argall (R-29), is pending consideration.
The advocacy efforts of aircraft operators and companies doing business in Pennsylvania was critical to the assembly passing HB 1100. Now, State Senators need to hear directly from constituents supporting SB 1552. 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.
The Senate bill has attracted numerous co-sponsors and is now under consideration by the Appropriations Committee.
Review SB 1552
Member Action
Members are encouraged to contact Senate Majority Leader Dominic Pileggi (R-9), and urge final passage of the bill.
When contacting elected officials, Members are encouraged to explain that this legislation 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 the inception of the rotor wing maintenance exemption in Pennsylvania, one company hired 412 employees and contributed in excess of $600,000 in personal income taxes. This does not include the increase in business tax revenues, personal sales tax revenues and other revenues as a result of increased employment and salaries.
States such as Massachusetts, Connecticut and New York have seen an increase in aviation activity and additional tax revenue after implementing similar exemptions. 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 and SB 1552. To date, NBAA has performed the following:
•Coordinated with Representative Daley (HB 1100 Sponsor) 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.
•Worked with Members to build support for SB 1552.
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.
For additional information, contact NBAA’s Operations Service Group at (202) 783-9250 or info@nbaa.org.
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