State bill would undo aviation tax exemptions

April 20, 2007

State bill would undo aviation tax exemptions

Connecticut lawmakers are looking at taking a big step back on tax relief and creating an unfavorable economic climate for aviation businesses. Last year the legislature decided to exempt aviation service, sales, and equipment from the state's sales and use tax. Before those benefits could even be realized, however, a new bill (Senate Bill 1385) is moving through the legislature that would undo it all by increasing the personal income tax rate and eliminating all but a few exemptions from the state tax code. In a letter to the legislature, AOPA pointed out that aviation businesses provide highly skilled, well-paying jobs and generate broad tax and social benefits. "By its nature, aviation does not recognize state lines. Aircraft owners living close to border states with more favorable tax environments will choose to purchase their aircraft in those states," wrote Greg Pecoraro, AOPA vice president of regional affairs. He also pointed out that Connecticut would lose revenue associated with the service and storage of those aircraft. The bill now moves to the Transportation Committee for more consideration, and AOPA encourages you to contact your representatives and tell them how the bill would have a negative impact on general aviation and the state.

April 20, 2007