March 1, 2012
By Dan Namowitz
An AOPA-backed bill exempting aircraft parts, supplies, and other components from sales and use taxes is headed to Idaho Gov. C.L. Otter for signing following unanimous passage by the state Senate.
House Bill 417 will exempt aircraft parts, supplies, and components installed by Idaho’s FAA-approved maintenance, repair, and overhaul (MRO) operators on out-of-state aircraft from state sales and use taxes. It passed the Senate Feb. 28. The House unanimously passed the bill Feb. 1.
The committee-sponsored measure, which moved forward with broad co-sponsorship, should remove competitive disadvantages faced by the repair shops competing for business with operators in states that already have the tax exemptions in effect. Projections estimate that 100 skilled jobs could be created by its provisions.
AOPA’s Northwest Mountain Regional Manager David Ulane worked in tandem with Idaho MRO operators and the Idaho Aviation Association (IAA) to support the bill, which succeeded following previous legislative efforts in 2010 and 2011.
“This is a decisive step forward for GA in Idaho,” said, Mark Kimberling, AOPA director of state governments affairs. “Idaho’s leaders have recognized the significant economic benefits of GA and GA-related businesses, and revised the state’s tax structure to increase GA activity, create new jobs, and spur economic development.”
The bill, which enjoyed strong support from Idaho’s 3,100 pilots, will take effect immediately upon the governor’s signature.
Dan Namowitz is an aviation writer and flight instructor. He has been a pilot since 1985 and an instructor since 1990.
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