MEMBER ALERT: AOPA will be closing at 1:45 p.m. Eastern on Dec. 6 and will reopen at 8:30 a.m. Eastern on Dec. 9.
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.
The concept of implementing STCs on previously modified aircraft is known as "layering STCs," and doing it properly is paramount to safety.
The reopening of the government on Oct. 17 was welcomed by an aviation industry eager to get back to normal business.
The FAA's aircraft registry's closure under the government shutdown precludes aircraft deliveries and could freeze transactions affecting as many as 130 aircraft.
AOPA thanks our members for their continued support in protecting the freedom to fly.