Wed, Mar 16, 2011
Repeals Exemption For Aircraft Parts And Maintenance, Assesses
Personal Property Tax
Connecticut Governor Dan Malloy (D) released his budget proposal
on February 17, 2011, which includes a provision impacting aviation
in the state. The proposal would repeal the current tax exemption
for aircraft parts and maintenance on aircraft under 6,000 pounds
and assess personal property tax on aircraft. House Bill
6387, if passed, would tax aircraft at 70% of their value factored
by a millage rate of 20. Millage is defined as one dollar for every
$1,000 of assessed value. For example, a corporate jet valued
at $20 million would be assessed an annual tax of $280,000.
It appears that there is no weight limit associated with this
proposal, meaning all aircraft in the state would be impacted.
Governor Dan Malloy
The Connecticut House of Representatives Committee on Finance is
expected to convene within the next few days to begin work on this
and other bills.
NATA is urging its members who have an interest in the state of
Connecticut to respond to this call to action immediately. Contact
the governor's office and elected representatives in Connecticut to
voice your opposition.
NATA says when talking to legislators, the following points
should be made:
- Surrounding states, Maine, Rhode Island, New Jersey, and New
York, do not impose personal property taxes on aircraft.
Therefore, because aircraft are mobile assets, owners, especially
corporate owners, are likely to reestablish their aircraft in one
of those states.
- Airports and airport-based businesses will lose revenue from
loss of fuel, hangar and maintenance purchases.
- Aerospace and aviation provide 45,800 jobs, resulting in a
$2.77 billion payroll to the state.
- This tax proposal will result in a significant loss of jobs and
revenue as aircraft owners seek to avoid this onerous tax
proposal.
NATA strongly encourages its members to be outspoken in
opposition to HB 6387. The association has worked with its members
in various states and has defeated similar budget proposals, but
says your immediate action is required.
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