Maryland luxury tax targets 'planes'
Aircraft sold for more than $35,000 are among targets of a new Maryland luxury tax proposal.
AOPA is studying Maryland House Bill 1345, which would add a 1 percent luxury surtax to the state sales and use tax on “motor vehicles, boats and planes” on sales amounts in excess of $35,000.
The surtax on motor vehicles, boats, and airplanes sold for a taxable price of more than $90,000 would be $550 plus 2 percent of the amount above $90,000.
The bill, which would impose a luxury surtax on most retail sales of items valued above $5,000, was introduced Feb. 16. It was referred to the Rules and Executive Nominations Committee.
Sponsors are Ways and Means Committee Chair Sheila Hixson and Delegate Heather R. Mizeur.
The bill’s introduction comes at a time when numerous other states have been acting to expand exemptions of aircraft from sales and use taxes as a way of bolstering the competitiveness of their aviation businesses and spurring employment.
February 22, 2012