Indiana to study broader aviation tax exemption

March 13, 2012

Indiana lawmakers have passed a bill that strengthens a general aviation sales-tax exemption and launches a study of expanding tax benefits for repair stations and fixed-base operators. The measure now heads to Gov. Mitch Daniels for signing.

House Bill 1325 bolsters existing tax rules by ensuring that sales- and use-tax exemptions already on the books apply to “aircraft completion work.” The bill also establishes a new exemption for aircraft registered in another country that are turbine powered or have a minimum landing weight of at least 5,000 pounds.

Another provision mandates that the Commission on State Tax and Fiscal Policy evaluate expanding the tax exemptions for aircraft parts to all aircraft, possibly lifting business prospects for the state’s 67 repair stations and 68 FBOs.

AOPA Great Lakes Regional Manager Bryan Budds and Mark Kimberling, AOPA director of state government affairs, worked with lawmakers in Indianapolis on behalf of AOPA’s 7,000 members in Indiana throughout the legislative process.

“The passage of House Bill 1325 is an important step forward for the Indiana General Assembly,” said Kimberling. “It signals the legislature’s desire to evaluate the state’s tax policy and in turn attract additional aviation activity to Indiana.”

The evaluation of an expanded tax exemption is expected to be completed by Nov. 1, he said.

Dan Namowitz

Dan Namowitz | Aviation Writer

Dan Namowitz is an aviation writer and flight instructor. He has been a pilot since 1985 and an instructor since 1990.

Topics Taxes, Advocacy