Regional Affairs

Rhode Island repeals aviation taxes

Rhode Island aircraft sales and use taxes will be repealed on January 1, 2005, thanks to legislation championed by AOPA Regional Representative Craig Dotlo and a coalition of general aviation organizations. Gov. Donald L. Carcieri signed the bill on July 2. The state was charging sales tax on the purchase of aircraft, parts, service, and maintenance, putting businesses within Rhode Island at a competitive disadvantage with businesses in neighboring states that exempted such purchases from taxes. The state could also charge a use tax (similar to a property tax) to non-resident aircraft, meaning a transient pilot could have been hit with a healthy tax bill just for landing in the state.

January 7, 2005