January 31, 2012
By Jim Moore
A bill that would clarify and expand the sales- and use-tax exemption for aviation maintenance in Indiana is making headway.
The legislation, backed by AOPA, would modify the state’s existing sales- and use-tax exemption for aircraft owned by non-residents to include an exemption for “aircraft completion work” including installation of equipment, or “tangible personal property.” Reconfiguration of nonresident aircraft interiors would also be exempt from taxation under the bill, approved recently by the Indiana House of Representatives Ways and Means Committee. The bill now heads to a vote by the full House.
“By providing a clear sales- and use tax-exemption for nonresident owned aircraft in the state for completion work, the legislature would make a strong statement in support of the Indiana’s 67 repair stations and the overall aviation economy,” said Mark Kimberling, AOPA director of state government affairs.
The legislation would apply to out-of-state residents who purchase aircraft in Indiana and have maintenance performed prior to leaving the state. It also would protect out-of-state pilots who fly to Indiana for maintenance and upgrades.
General aviation contributes an estimated $2.9 billion to Indiana’s economy annually, and supports nearly 19,000 jobs. AOPA voiced strong support of the bill to legislative leaders in Indiana.
AOPA Online Associate Editor Jim Moore joined AOPA in 2011 and is an instrument-rated private pilot who enjoys competition aerobatics.
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