AOPA is working with national and state-level aviation advocates to head off repeal of an aircraft sales tax exemption that since 2015 has provided financial stimulus to New York state and made the state a more competitive place to base aircraft.
“This tax exemption has resulted in hundreds of millions of dollars of public and private investment that would not have otherwise occurred, nor would the related boom in jobs,” said AOPA Eastern Region Manager Sean Collins. He pointed out that repealing the exemption could add up to 9 percent to an aircraft’s purchase price, given a 4-percent state sales tax and additional local taxes.
On passage of the tax-exemption measure in 2015—following a decade of legislative advocacy—AOPA reported the observation by Michael Giardino, then president of the New York Aviation Management Association, that the tax exemption “levels the playing field” with nearby states, eliminating incentives for New Yorkers to base their aircraft elsewhere. “You can bring your aircraft home,” Giardino said at the time.
Fast forward to January 28: In an emailed message, NYAMA warned that reversing course by approving Senate Bill 7135 or Assembly Bill 9053 would lead to “job losses and reduced economic growth.”
“Enacted as part of the 2015 budget, the Aviation Jobs Act makes New York competitive with surrounding states and has led to direct investment at airports since its passage,” it said.
In a January 29 letter to state Sen. Brad Hoylman (D-District 27), sponsor of the Senate bill, Collins cited an industry economic-impact analysis that found that “every based business-use aircraft accounts for an average of 5.5 jobs and more than $1 million in annual economic activity.”
“In the time since the exemption passed in 2015, hundreds of new aircraft have based at New York airports. Additionally, airports have received hundreds of millions of dollars of public and private investment as a direct result of the exemption through the construction of new hangars, terminal buildings, and other infrastructure. Many of these new aircraft relocated from neighboring states,” he added.
All of the groups are urging their members to let their elected leaders in the state capital of Albany know of their opposition to the repeal of the bills.