Two bills introduced by Maryland lawmakers would lower the cost of flying and help local aircraft repair businesses compete with shops enjoying a tax advantage in neighboring states.
AOPA supports the effort launched in the Maryland Senate and the House of Delegates to exempt materials, parts, and equipment used in aircraft maintenance and upgrades from state sales and use taxes. AOPA plans to advocate for the bills’ passage with letters to lawmakers, providing testimony at hearings, and personal contacts, said Jared Esselman, AOPA director of state government affairs.
“Aviation is a highly mobile, highly competitive industry that can be a major economic driver for states and communities. States need to remain competitive with their neighbors to keep jobs and grow small businesses,” he said.
The measure, Senate Bill 14, has been sponsored by Sen. Ed Reilly (R-District 33). It has been referred to the Budget and Taxation Committee. A companion bill filed in the House of Delegates is sponsored by Delegate Sid Saab (R-House of Delegates District 33). Hearings have not yet been scheduled for either bill.
AOPA has helped make the case for passage by making available AOPA member-researched cost estimates for aircraft repairs at shops in Maryland, Ohio, and Pennsylvania. “Only Maryland applies a sales tax to the invoice,” Esselman said.
During the advocacy effort, AOPA members in Maryland “are more than welcome to write letters of support to their own legislators, Senator Reilly, and Delegate Saab, as well as attend committee hearings in which the bills will be discussed,” he added.