Tennessee governor signs aviation tax relief bill

August 7, 2004

Tennessee governor signs aviation tax relief bill

Tennessee Gov. Phil Bredesen recently signed a bill reversing a scheduled tax increase on aviation fuel. Without the efforts of AOPA Regional Representative Bob Minter, Tennessee pilots would have been hit with a 100-percent increase in state taxes on fuel in January.

That was because the state had passed a "streamlined sales tax" bill designed to bring nationwide consistency to how states apply sales and use taxes. But the unintended effect was to potentially raise the sales tax rate on general aviation fuel from 4.5 percent to 9.5 percent. Immediately after the streamlined sales tax bill passed, Minter began working with legislators to win relief for GA pilots. The result was the bill (SB3454) that passed the legislature and Bredesen - a fellow pilot - signed into law June 21. In a letter to the governor, AOPA President Phil Boyer expressed his personal appreciation and "that of AOPA's more than 7,000 members in the State of Tennessee for your interest and assistance in helping realign aviation fuel taxes within Tennessee's streamlined sales tax legislation via SB3454."

July 8, 2004