Missouri Gov. Jay Nixon signed an AOPA-backed aircraft tax exemption bill into law on July 6 that will help boost the state’s economic engine while benefiting aircraft mechanics and pilots. The measure eliminates sales and use taxes on aircraft purchased in Missouri as long as the craft is based in another state within 10 business days.
Sometimes known as a fly-away exemption, the policy encourages potential out-of-state buyers of aircraft currently based in Missouri to have pre-buy inspections, upgrades, and other aircraft maintenance performed in the Show Me state while they close their transaction. Prior to this policy, purchasers would fly the aircraft to nearby Kansas, Illinois, or Nebraska, where such measures are already in place.
“The exemption was a priority for AOPA,” said Yasmina Platt, AOPA’s Central Southwest regional manager. She championed the bill to Missouri lawmakers through letters, emails, and phone calls as well as personal appearances both at a hearing and at the state’s aviation day. The aircraft exemption was added to restaurant tax measures on House Bill 517.
Platt explained that allowing local mechanics to conduct pre-buy inspections, routine maintenance, and upgrades for aircraft buyers coming from out of state would keep aviation dollars in the state. “This important measure invests in Missouri because it increases revenue for local businesses including restaurants, motels, and car rental companies while potential out-of-state aircraft owners complete a Missouri-based aircraft transaction.”
For more information on aircraft financing, please visit AOPA Aviation Finance here.