Personal Property Tax Would Affect All Aircraft, Sales Tax Could Be Imposed On Maintenance

Connecticut Governor Dannal Malloy (D) (pictured) has proposed a personal property tax on aircraft that critics say will drive GA out of the state.

NBAA Regional Representative Dean Saucier tells ANN that Bill 6387 in the Connecticut House would tax all general aviation aircraft at 70 percent of the value of the aircraft and charge a tax on that valuation of 20 mils. Therefore on a $1 million aircraft the tax will be $14,000, annually.

Bill 1007 in the state Senate would eliminate a tax exemption on labor on the repair of aircraft weighing less than 6,000 pounds.

Saucier says NBAA sent out a survey to aircraft owners, piston and turbine, to determine the impact the taxes would have on them. They contacted CT legislators and each member of the Finance Committee informing them of the impact of these Bills on jobs and the CT economy, and contacted the Governor. NBAA got the CT chapters of EAA and the Northeast Bonanza Society energized, and is working closely with the Connecticut Business Aviation Group. The organization is also involved with several legislators in an effort to defeat the bills, and continues to gather data and provide it to the legislators.

Saucier says that bill 6387 will be heard at the Legislative Office building on 07 March, though no time has for the hearing has been set as of publication. Bill 6387 will impose a personal property tax on ALL aircraft BASED in Connecticut. He expects this to probably be an all-day event, however, he says it is critical that all affected persons attend this Hearing either to testify or support those who will testify. The attendees will be the Finance Committee who have the ability to either raise the Bill to a legislative vote or terminate the Bill in Committee. It would be better for all who are affected by the Bill, to have it terminated in Committee.

A separate public hearing will be held at the Legislative Office Building, adjacent to the State Capitol and the Armory on 07 March to hear opinions on the Governor's 2011 budget. Specifically Bill 1007 will be heard. Saucier says that the NBAA's position on Bill 1007 is that the wording "Repair Services" in the Bill, is ambiguous, at best.  It is assumed to mean tax on labor and not parts, however, because of the ambiguity, it's not really known what the Bill will tax. Again, no time has been designated  for that hearing.

FMI: www.nbaa.org, www.cga.ct.gov