March 13, 2012
By Dan Namowitz
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.
The Senate has joined the effort to expand the FAA's third-class medical exemption to more pilots and aircraft.
The FAA has asked the National Transportation Safety Board to review a judge’s ruling reversing a fine it levied in an unmanned-aircraft case.
A new law in New Mexico will exempt parts and labor used in aircraft maintenance from the gross receipts tax, saving aircraft owners millions.
AOPA thanks our members for their continued support in protecting the freedom to fly.