Airports and State Advocacy
South Dakota House passes homebuilder tax relief
The South Dakota House of Representatives has approved a bill championed by AOPA and pilots across the state that will provide relief from double taxation of aircraft homebuilders.
Working with the South Dakota Pilots Association, AOPA has called on lawmakers to enact tax policy that treats homebuilt aircraft the same as factory-built models.
Under current law, both homebuilt and factory aircraft owners pay a 4-percent registration tax in lieu of a sales and use tax. Components such as engines, avionics, and propellers are exempt from additional taxation when installed in a factory-built aircraft, but state revenue officials recently began sending bills to homebuilders seeking back taxes on installed components. Pilots responded to a recent AOPA Action Alert urging them to contact state lawmakers and voice support for House Bill 1209, which now heads to the state Senate following a 45-23 House vote Feb. 13. The bill would apply the exemption for installed components equally to factory and homebuilt aircraft.
"AOPA and SDPA members across South Dakota answered the call to make their voice heard in Pierre,” said Mark Kimberling, AOPA director of state government affairs. “As we’ve seen across the country, an engaged aviation community makes all the difference in state capitols.”
Following payment of the initial registration tax, owners of all aircraft would continue to pay fees in subsequent years based on aircraft weight and age.
AOPA will continue to coordinate with South Dakota pilots to maintain a steady chorus of support for the fair taxation bill. South Dakota members should watch for further Action Alert emails; updates will be posted on AOPA Online.
February 16, 2012