Maryland pilots asked to back tax bill

While the state Senate unanimously approved a bill that would make permanent the sales and use tax exemption approved in 2020 for aircraft parts and accessories, the House bill written for the same reason has not yet advanced out of the Ways and Means Committee. AOPA sent an email to 1,500 Maryland members on February 23, urging them to contact members of that committee in support of the pending legislation.

The tax exemption, similar to state legislation that AOPA has vigorously supported nationwide, aligns Maryland with surrounding states that exempt aviation maintenance providers and aircraft owners from sales taxation. Opposition to the Maryland exemption in 2020 resulted in a sunset provision that will reinstate the sales tax in 2025 if lawmakers fail to act. Aviation businesses in Maryland would suffer as aircraft owners seek service in neighboring states; repair shops that lease space from municipally owned airports, which is common, would likely reduce staff and might relocate or close.

AOPA Eastern Regional Manager Sean Collins said that while AOPA targeted members living in particular districts with the call to action, any member in Maryland can help by asking their own delegates to support making the aviation maintenance exemption permanent.

“In 2020 Maryland took a significant step forward to improve the competitiveness of its aviation industry by exempting aircraft parts and components from Maryland sales taxes, in line with neighboring states,” Collins said. “Since that time, Maryland has enjoyed approximately 200 percent job growth at those aviation maintenance companies that responded to an AOPA survey. AOPA greatly appreciates Delegate Adams and Senator Corderman’s sponsorship of this legislation aimed at keeping Maryland’s aviation industry competitive as it is surrounded by states with similar tax incentives, including Pennsylvania, Virginia, and West Virginia—all of which exempt aircraft maintenance from sales tax. Failure to extend this target exemption will result in lost jobs and make it harder for Maryland’s airports—most of which are municipally owned—to compete with neighboring states.”