AOPA fights plan to end aviation tax exemption

March 27, 2008

AOPA fights plan to end aviation tax exemption

By AOPA ePublishing staff

AOPA and local aviation groups are actively opposing two measures, S.B.2668 and H.B.7950, which would end Rhode Island’s sales-and-use tax exemption for aircraft and parts.

AOPA Northeast Regional Representative Craig Dotlo testified against the proposals during a March 26 hearing, and the association is asking members to make their voices heard.

In his testimony, Dotlo warned that the experience of other states shows repealing the exemption would likely slow the aviation sector without generating much revenue. In fact, the exemption itself has generated significant revenue since it was enacted in 2005 by increasing aviation-related fuel sales, employment, and capital investment.

“This tax exemption provides real stimulus for aviation growth,” Dotlo explained. “Repealing it could cost the state far more money than the tax generates.”

AOPA members are urged to contact their state legislators to express their opposition to repealing the state sales-and-use tax exemption for aviation.

March 27, 2008